Expatriates under spotlight in S'pore

Expatriates under spotlight in S'pore

Martin Abbugao, Agence France-Presse, Singapore

Rising unemployment as wealthy Singapore stumbles into hard times
has rekindled a debate on the presence of about 800,000
foreigners, most of them workers, in the tiny city-state.

A report by two respected university economists that said
foreign workers took three of every four jobs created between
1997 and 2002 was front page news and sparked an angry denial
from the government, apparently concerned about a backlash.

Acting manpower minister Ng Eng Hen said that in reality, nine
out of 10 new jobs during that period had gone to Singaporeans.

Although the economists later admitted they had made an
"honest error," the controversy whipped by their report is likely
to persist as questions remain over Singapore's policy of
openness towards foreign workers, who account for about 24
percent of the work force.

Unemployment is at 4.5 percent -- the highest since a
recession in the 1980s -- and workers currently employed are
being asked to agree to steep wage cuts as the economy struggles
to emerge from the impact of Severe Acute Respiratory Syndrome
(SARS) and a global economic slowdown.

"Timing-wise, (the economists' report) could not have come at
a worse time for Prime Minister Goh Chok Tong," said Song Seng
Wun, a regional economist with GK Goh brokerage.

Government figures that Singaporeans took 90 percent of jobs
created between 1997 and 2002 "may not be taken as gospel truth
by the man on the street," Song added.

"It is an unnecessary problem for the government to deal with
when they are trying to get the wage reforms going," he told AFP.

"Unless the people are locked up behind bars, they can see for
themselves how many foreigners are here in Singapore."

Foreigners manage many top companies here, while laborers from
China and Bangladesh are the mainstays of the construction
industry.

Professionals, engineers and architects from Malaysia, the
Philippines and other countries are fixtures in offices.

During a recent dialog, Singapore's founding father and
current senior minister, Lee Kuan Yew, was asked by a trade
unionist why some Singaporeans working for a local firm were
retrenched, while Filipinos receiving higher salaries were
retained.

The question was posed in terms of whether the supposed goal
of cutting costs was achieved by the layoffs.

"Our boys served their national service," the 30 months of
military training mandatory for all able-bodied Singaporean men,
the interlocutor emphasized.

Lee responded that the policy of attracting foreign workers
had served Singapore well because it allowed businesses to bring
in investments knowing they could employ the best global talents.

These investments created jobs for both Singaporeans and
foreigners, he said, warning the economy would falter if foreign
workers were kicked out.

About 41 percent of Singapore's gross domestic product growth
in the 1990s came from foreign workers, according to a Ministry
of Trade and Industry report in 2001.

Without overseas workers, Singapore could not have achieved an
average quarterly growth of 7.8 percent during the period, said
the report cited by The Straits Times on Saturday.

The government's employment policy has long won support from
the international community and analysts have warned backtracking
on the open-door attitude to foreigners would hurt Singapore's
economy.

"Tightening restrictions on foreign workers could prove
counterproductive," said Michael Backman, an Australian
economist, author and commentator on Asian political and economic
affairs.

"Foreign workers attract investment to Singapore and help to
promote trade. Rather than take jobs from Singaporeans it's quite
possible that their presence helps to create jobs."

Another compelling reason to maintain a foreign presence in
the Singaporean workforce is the lack of "sufficient
entrepreneurialism" in the city-state, said Backman.

"In any event, foreign workers bring new knowledge and
expertise. They also help to give Singapore a cosmopolitan feel
and to lift its status to that of a 'world city' rather than
being a regional backwater."

In the end, companies will continue to hire foreigners if they
find them cheaper.

"A lot of this involves the economics of trying to save
costs," said Nizam Idris, a regional economist with research
house IDEAglobal.

"If it means employing cheaper foreign labor so be it."