REGULATING FLOW OF FOREIGN TALENT

Mr Simon S C Tay asked the Minister for Trade and Industry whether, given the present economic conditions, there will be sufficient jobs in the coming year for fresh graduates from the universities and the polytechnics and others new to the job market.

Mr Lee Yock Suan: Given the financial crisis in the region and expected slower economic growth this year, there will be some moderation in labour demand from the high levels of recent years. As more companies adjust to cope with the situation, we will see a general slowing down in the hiring of new staff.

However, weakness will not be even across sectors. Although new hiring in the financial and business services, and commerce sectors is expected to weaken, the employment outlook for the manufacturing sector is relatively more optimistic. EDB's latest survey of business expectations for the manufacturing sector shows that it will continue to invest in productive capacity over the next 12 months. The public sector also requires more staff, for example, the teaching and nursing professions.

In recent years, the labour market has been very tight, resulting in the import of a large number of foreign workers and a high rate of labour turnover. The cooling of the employment market will moderate this situation. New entrants to the job market should be able to find employment if they possess skills and are not too choosy with jobs. Older and lower skilled workers should make use of this period to enhance their qualification and skill levels to make sure they remain productive and employable.

To satisfy its pipeline of incoming investment projects, EDB estimates that two out of three new jobs to be created will require skilled workers with minimum NTC-2 qualification. On the whole, we still expect the labour market to remain fairly tight for professional and skilled manpower, such as engineers and technicians.

Mr Ong Ah Heng asked the Minister for Labour how the Government will regulate the flow of foreign talent to ensure that they will not be allowed to come here to take over jobs held by Singaporeans simply because they are cheaper to hire.

Dr Lee Boon Yang: The Government has explained on several occasions that foreign talent is needed to supplement the local pool of talents. Our small workforce of 1.9 million is a major limiting factor. With increasing global competition, our economic growth will be severely constrained by a shortage of talent. There is a limit to what we can generate ourselves through our universities and polytechnics. For instance, NUS and NTU can generate about 9,000 graduates yearly. This is much less than the projected requirement of 17,000 graduates per year by Year 2000 to sustain economic growth. Foreign talents are thus needed to supplement our very own so that economic growth can be sustained.

The infusion of foreign talents will enhance our competitiveness. In an intensely competitive globalised economy, Singapore has to stay ahead by restructuring our economy towards more knowledge-based and technology-intensive industries. Already, some competitors are fast becoming a real challenge in many areas where we have had comparative advantages. We need to tap new growth areas and move on to higher value added activities in order to stay ahead. To transit successfully into a knowledge-based economy, we need the infusion of top talents to supplement our own citizens. Imported talents will bring with them new ideas, innovation, and good practices that will help us in our upgrading efforts. They can help us to remain competitive in the face of future challenges.

Singaporeans should not feel threatened by the admission of foreign talents. Employment of foreign talents is not a zero sum game. Rather than displacing local workers, foreign talents fill up the gaps in our manpower resources and help us to achieve higher rates of economic growth. By helping us to grow the economic pie, foreign talents can contribute to job opportunities and rewards for Singaporeans.

Foreign talents do not always cost less than locals. In fact, the top talents we are eyeing are in demand globally and they command high wages. Companies in Singapore would have to compete vigorously to attract these talents. In the same way, companies would also need to step up efforts to retain local talents who are equally mobile and in demand. The real challenge facing Singapore would be one of attracting and retaining talents, whether foreign or local, to sustain and enhance our economic competitiveness. Rather than feel threatened, Singaporeans should rise up to the challenges ahead, and upgrade their knowledge and skills to raise quality and productivity. The exposure to competition will invigorate our workforce, sharpen our skills and stimulate dynamism within the economy. A globally competitive workforce, incorporating local and foreign talents, is the key to our longer term success.