FOREIGN WORKERS FOR SMALL BUSINESSES (cont.)

Mr Lee Yock Suan: I would like to take this opportunity to elaborate on the policy, as stated in the recent Budget Statement, that the Government will be more flexible in administering the repatriation of foreign workers.

Businessmen and employers should not misconstrue this policy to mean that the Government is reopening the tap to allow more unskilled foreign workers to come in. It is in the repatriation programme for foreign workers that we will be more flexible. The Government recognises that the large number of foreign workers who have been admitted into the country in recent years cannot be phased out abruptly without affecting our economic growth. Hence, the repatriation programme will be more flexibly administered in order not to compound our labour shortage.

While recognising the need to be flexible, we should not overlook the adverse social and political consequences of having a large number of such workers in Singapore. Our long-term policy is still to reduce our dependence on unskilled foreign workers. Thus, my Ministry is continuing with the programme of phasing out unskilled, non-traditional-source or NTS workers from the manufacturing sector. The bulk of NTS workers in manufacturing have already left by the end of last year. The remaining ones, who were granted extension until 1986, will be leaving over the next two years - as and when their work permits expire. Except for those who are employed as domestic help and in the construction industry and shipyards, all NTS workers in other sectors have already been repatriated(2).

My Ministry will however try to strike a reasonable balance between the long-term goal of reducing dependence on unskilled foreign workers and the need to ensure that repatriation will not affect economic growth. Thus:-

• By this and other statements in the past, employers who require unskilled foreign workers have been given notice of our firm intention to reduce dependence on foreign workers. They have been constantly reminded to upgrade and adjust their operations to prepare for the day when they will not have access to foreign workers.

• My Ministry will continue to restrict the number of new foreign workers to be admitted. New recruitments will be allowed only selectively to meet the needs for critical skills or to accommodate temporary shortages, particularly in manufacturing, hotels, shipyards and construction and for domestic help.

• Workers with skills valuable to the economy can form part of our permanent workforce and will be allowed to stay longer or given permanent residence if they are suitable.

• As for other employers, such as those in the retail and service sector referred to by the Member, my Ministry will, for the time being, be flexible in allowing them to renew the permits of their existing foreign workers particularly those who have skills useful to the economy. No new recruitment of unskilled foreign workers by this sector will however be allowed. This sector basically serves the domestic market and is not subject to international competition. The employers should try harder to recruit local workers and pay appropriate wages to attract them.

The Ministry is aware that we will continue to face a tight labour market if economic growth remains strong and productivity improvement is not fast enough. However, with the more flexible repatriation programme, employers who do not have access to the use of foreign workers should have less difficulty in recruiting local workers than if we were to operate the tight repatriation programme as previously scheduled.

I would like to stress that while we will be flexible, employers should continue to make efforts to reduce their reliance on unskilled foreign workers. If not, they will only find it even more painful to adjust later on.