In a recent response to a Parliament question, Singapore’s Manpower Minister Tan See Leng shared insights from a study on foreign workforce policies. The study found that imposing tighter policies for lower-skilled foreign workers can be more beneficial for local workers than stricter rules for higher-skilled workers.
The reason for this is that businesses tend to substitute low-skilled but cheaper foreign workers with local workers, which improves production processes and can benefit the local workforce. As a result, the Ministry of Manpower (MOM) has decided to welcome top-tier foreign professionals while still restricting the number of people with work permits through quotas and levies.
The Importance of Considering the Limitations of Studies
While the study’s findings are significant, Minister Tan acknowledged that studies have their limitations. It is important to consider other information to ensure the accuracy of the results. The impact of the interventions studied might also change if they were applied beyond a certain scale or for a different time period. Therefore, it is crucial to interpret the study’s findings carefully alongside other sources of information, including recent labour market statistics and industry feedback.
Singapore’s Foreign Workforce Policies
The MOM’s policies aim to ensure that Singapore’s economy remains globally competitive while protecting the interests of its local workforce. The government has implemented various initiatives to support Singaporean workers, such as the SkillsFuture programme, which provides training and upgrading opportunities for workers to remain relevant and competitive.
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The MOM has also introduced measures to ensure that Singaporeans are fairly considered for job opportunities. These include the Fair Consideration Framework, which requires employers to advertise job vacancies on a national jobs bank before they can hire foreign workers, and the Jobs Growth Incentive, which provides wage support to employers who hire and retain local workers.
The study’s findings suggest that imposing stricter rules for lower-skilled foreign workers can be more beneficial for local workers than for higher skilled workers. The MOM’s approach of remaining open to high-quality foreign professionals while regulating the number of work permit holders through quotas and levies is aimed at balancing the needs of the economy and the local workforce. However, it is crucial to consider the limitations of studies and interpret their findings carefully alongside other sources of information to ensure accurate policy-making.
