Managing Dependence On Foreign Workers Economics Essay

By July 18, 2017 Economics

More Flexible Singapore authorities will take to more stable society and positive concern environment

Current state of affairs of Singapore

For 2012, MTI expects Singapore ‘s GDP growing to between 1 % and 3 % . Although the growing rate is lower than earlier. But this rate still shows that economic system of Singapore is healthy. Obviously the planetary economic system is still in the recovery stage. However chances remain positive for companies with markets or investing in Asia. They are go oning to believe Asiatic market, although with some cautiousness given the unpredictable planetary economic environment. There will besides be continues demand from the part for Singapore services- in finance, logistics and touristry.

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The mission of Singapore authorities is “ to construct an inclusive society and a stronger Singapore ” . Singapore authorities believes that conveying in foreign work force is the simple and efficiency manner to increase Singapore economic system and Singapore will go a immature state, full of verve, invariably turning and regenerating itself. In recent twelvemonth, increasing population of foreign work force leads to several consecutive society jobs such as unemployed rate of Singapore citizen, apportioning instruction resource, traffic jam and lifting monetary value of HDB and condominium. Nowadays a batch of people begin to believe about what makes a Singapore nucleus. The most atrocious consequence is the support rate of PAP had dropped the lowest point in the Singapore history at the recent election. It shows that Singapore citizens seem dissatisfied with authorities.

The latest population white paper of Singapore point that proportion of citizens projected for Singapore by 2030 would diminish to about 55 per cent of the entire population, from about 62 per cent today. WP president and Aljunied GRC Member of Parliament ( MP ) Sylvia Lim said that, under the proposed route map, Singaporeans who grew up here would fall below 50 per cent of the population, “ which would alter the character of Singapore forever ” and thin the state identify.

But still hold some good intelligence, today more companies embrace CSR in Singapore. The authorities association, Singapore compact, smartly promotes the important of corporate societal duty.[ 1 ]

In 2013, the white paper on population focal points on Singapore ‘s population policies to turn to the demographic challenge. It besides indicate out that there are three cardinal pillars to guarantee a sustainable population for dynamic Singapore: a strong and cohesive society with Singaporeans at the bosom of the state ; a dynamic economic system that can make good occupations and chances to run into Singaporean ‘s hopes and aspirations ; a high quality life environment and a good place for Singaporeans.

Pull offing dependance on foreign workers

As we know that Singapore is a scarceness of land and labour resources of the metropolis province. But nowadays Singapore has become one of planetary economic centre and merely one developed states in Southeast Asia. I think that the chief ground why Singapore became a developed state in short term is globalisation. Due to the rise of international fiscal and trade establishments and ideal location of Singapore, Singapore became a planetary port metropolis quickly. Meanwhile this besides brings in a big figure of foreign work forces. However, increasing dependance on foreign worker is non sustainable. In the 2012, Singapore authorities point out that the first undertaking is to upgrade and reconstitute Singapore economic system, in order to construct a globally competitory and vivacious economic system that sustains inclusive growing and creates chances and good occupations for local and so cut downing dependence ratio ceilings from 1 July 2012.

If I assume that Singapore is a big multiple national corporate, Singapore citizen and PRs are evidently market stakeholder for it. A popular new, “ SMRT coach driver work stoppage: were they truly treated reasonably ” , province clearly that we need to recognize that alien is besides market stakeholder for Singapore. So I think that Singapore authorities should happen a balance point between aliens and locals.

Helping SMEs make the passage

Today, 99 %[ 2 ]of all endeavors in Singapore are little and average endeavors ( SMEs ) and contribute over 50 % of national GDP. In Singapore budget ( 2012 ) province that “ our SMEs are in fact the most affected by the deficit of workers, and by our economic restricting ” . Government will widen particular aid to SMEs to reorganise and upgrade their operations. This manner besides can pull Singaporeans to make full up loophole of labour.

Particular employment recognition ( SEC )

Government will pay to employers who hire Singapore worker aged above 50. Today, Singapore besides has to confront the ripening of population issue. This new ordinance will cover 80 % of older Singapore worker population. I think this is a smart manner to work out societal and economic issue at the same clip.

Enhance productiveness & A ; invention recognition ( PIC ) strategy

Singapore authorities will increase the national investing to promote smaller companies to put in invention and productiveness and increase market fight of SMEs. This is a typical illustration that authorities did respond and in ways that significantly affected the business- authorities relationship and engagement of authorities in free market system. Although Singapore is a capitalist state, authorities still likes an unseeable manus to set market. At present, this manner is propitious to Singapore and assist Singapore economic system to last in a altering market place.

Aging of Singapore population

Aging of population is a serious societal job in a batch of developed states every bit good as Singapore. Harmonizing to statics ( population white paper, 2013, p13 ) , by 2030, Singapore household construction is likely to change by reversal itself with more aged members than younger 1s. Therefore, Singapore authorities wants to construct a dynamic state, it should get the better of this issue. The new policy, promote matrimony and parentage, will assist twosomes to acquire lodging so they can get married and get down households earlier, supply support for construct and bringing costs, supply more aid with child-raising costs, including health care costs and guarantee that working twosomes can and will equilibrate work and household committednesss. Because a big figure of aliens choose to populate in Singapore in recent old ages, land and apartment monetary value is lifting quickly. This state of affairs straight leads to Singaporeans stall their lodging or matrimony programs. Although authorities remains unfastened to in-migration, a batch of aliens still prefer to use PR instead than citizen. They can maintain their ain nationality and have freedom to come in or go forth Singapore and purchase HDB in low monetary value. The societal force per unit area is still really high. So the new contradiction is coming. One side is aging of population and the other side is force per unit area from big population of aliens. I think this is the 2nd balance point that Singapore authorities should happen out.

Analyze three underside line in Singapore corporates

Singapore authorities did n’t print some ordinances and policies to advance corporate societal duty and environmental duty. But I think the three underside lines is the basic concern regulation for corporates in Singapore. Singapore is called garden state. Environment duty has been rooted in the Black Marias of everyone who stay in Singapore.

The authorities has been promoted societal duty for a long clip. It is no hyperbole to state that Singapore is theoretical account of Asiatic. In recent old ages, corporate societal duty ( CSR ) is deriving “ tenseness ” among the companies in Singapore. Harmonizing the statics, the quickly addition in companies fall ining the Singapore Compact for CSR. Because the populace are progressively care about companies ‘ environmental and societal duty and more consumers are demanding companies to be ethical. Companies are besides get downing to recognize that CSR makes good concern sense as it enhances their credibleness, expands their employee keeping, attracts more planetary endowment, and helps themselves better address environmental concerns.


Singapore is non like other developed states that have natural resource or adequate local labour. In other word, Singapore can non acquire rid of external consequence. So Singapore merely can happen a solution to cut down the dependance on foreign labour. Singapore is unsuited to develop the basic industries. Thus, authorities should construct an economic system driven by higher employees ‘ accomplishments, invention and productiveness, every bit good as the footing for accomplishing higher incomes for Singaporeans. Although no 1 can foretell the hereafter planetary tendency and job that Singapore will be facing, we still can follow interaction among concern, society and authorities to happen proper solutions.


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