ECONOMIC SECTORS IN TIGHT LABOUR SUPPLY (Measures to ease)

Dr S. Vasoo asked the Minister for Labour (a) which economic sectors are facing a tighter supply of labour; and (b) what actions are being taken to ensure an adequate supply of labour to these economic sectors.

Mr Lee Yock Suan: Mr Deputy Speaker, Sir, in terms of employment, the manufacturing sector has been the fastest growing sector this year. In the first eight months of this year, it created about 32,000 new jobs compared to 9,000 in the commerce sector, 2,500 in the transport and communications sector and 2,000 in the finance and business service sector.

The growth in manufacturing has been mainly in the electronics and garment industries which account for about 60% of the job increases. These two industries as well as the retail sector have a preference for young unskilled female workers who are in short supply.

With economic recovery, many jobs created have been taken up by new entrants to the labour market from our schools, vocational institutes, Polytechnics and Universities as well as by retrenched workers and other unemployed Singaporeans. Since June last year, about 30,000 unemployed Singaporeans have found jobs. There are also an estimated 36,000 Singaporeans classified as economically inactive who have indicated interest in seeking employment.

To prevent the labour market from getting too tight, the Government has allowed the liberal entry of foreign workers into the four approved sectors which are manufacturing, hotels, construction and domestic maids. This policy indirectly benefits the other sectors of the economy by untightening the labour market. Foreign work permit holders who have been employed in the unapproved sectors have been allowed to remain in those sectors and to change jobs if they wish.

Apart from increased competition for workers, certain firms may have difficulty in recruiting and retaining sufficient workers for various reasons. Some examples are:

1. The firm pays salaries which are below market rates;

2. The working environment is unpleasant and the image of the firm is poor;

3. The company has more than 50% foreign workers in its workforce and is not allowed to recruit any more foreign workers;

4. The firm has been blacklisted for employing foreign workers illegally.

The Member's question implies that the Government has to make available sufficient workers to meet whatever demand. With our limited working population this means an increasing access to foreign workers. Such a liberal policy would not be to our national interest. The current econo- mic situation is such that a ready supply of foreign workers tends to create its own demand. There will be no incentive to optimize the use of local manpower, to employ older Singaporean workers and housewives and to increase productivity through automation and improved work methods. Too liberal an inflow of foreign workers will also depress local wages and attract more unskilled labour-intensive operations to Singapore.

The Government has to carry out a difficult balancing task. We have to allow a regulated inflow of foreign workers to facilitate healthy economic growth and upgrading whilst avoiding over-dependence on foreign workers. Economic growth should not be achieved simply by importing an ever-increasing number of foreign workers. Our goal should be to upgrade the level of our economy so that Singaporeans can be trained and employed in better paid jobs. To achieve this, both employers and workers must be prepared to make the necessary adjustments and to play their parts.

Mr Chiam See Tong: Mr Deputy Speaker, Sir, can the Minister please tell this House whether workers have been recruited from China or attempts have been made to recruit workers from China?

Mr Lee Yock Suan: Mr Deputy Speaker, Sir, there are very few workers here from China. They are here basically for training, for example, in the construction sector.

Mr Chiam See Tong: Can the Minister please tell us how many of these female foreign workers were sent home because they attempted to go into a contract of marriage with our Singaporeans?

Mr Lee Yock Suan: Mr Deputy Speaker, Sir, the Member seems to have a liking for asking detailed questions about numbers. I do not carry these numbers with me in my head. If he is interested, he could file a separate question for a later sitting and I would be happy to answer the question.