BT Explains: Singapore’s love-hate relationship with foreign workers

In the 2011 General Election, foreign manpower was a big topic for discussion. Singaporeans felt that they were being crowded out on public transport, facing high HDB prices, and concluded that such struggles were the product of Singapore’s changing populace (meaning, there are too many foreign workers). Since then, the issue of immigration policy and foreign workers has consistently resurfaced throughout this decade. Changing attitudes towards foreign manpower has created a distinction between lower-wage workers (in sectors such as construction, security, and cleaning) and skilled professionals, managers, and executives at higher level employment pass salaries. Over the pandemic, concerns over the foreign workforce have become even more relevant as the pandemic has taken away jobs, businesses, and hit foreign worker dormitories the hardest. Covid clusters in dormitories raised questions about foreign workers’ living conditions and their safe distancing measures. 

Despite the negative attitudes towards foreign labor, Singapore has long been dependent on it. In the 1980s and 90s, Singapore implemented policies to foster economic growth, which led to a rapid increase in Singapore’s foreign worker population. Singapore’s non-resident workforce increased by 81.8% from 2000 (612,200) to 2010 (1,113,200). As Business Times explains, the dependency on and prominence of Singapore’s foreign workforce came about due to three reasons: 1) pressure to grow the economy, 2) inability of Singapore’s citizen population to increase to organically keep pace with growth, and 3) poor compensation and progression for jobs in essential services and industries needed for the country to grow (Singaporeans do not want to work in low-wage sector jobs, so foreign workers fill that spot). 

The debate on whether or not Singapore should cut its foreign workforce is not black and white. Some political commentators believe that Singapore should cut its labor-intensive processes, other employers claim that locals are not keen to work for local small to medium-sized enterprises. The government has previously stated that they would like to reduce Singapore’s reliance on foreigners but understands that doing so will lead to slower construction and higher costs. As Business Times concludes: lowering the foreign workforce will take time, and it will be painful for many companies who rely on such labor. Shutdowns, price surges, and delays are to be expected but must happen to pursue productivity, sustainability, and growth.