Prime Minister says Singapore must remain open as job competition anxiety grows

SINGAPORE, Aug. 29 (Reuters) – Singapore must remain open to preserve its status as a global business hub, its prime minister said on Sunday, as the country continues to tighten its foreign worker policies and address concerns of the premises by the competition for jobs.

Foreign labor has long been a major issue in Singapore, but uncertainties due to the COVID-19 pandemic have raised labor concerns among locals as the state of the city recovers from the last year’s record recession.

“We need to make it clear to the world that Singapore is determined to remain open to making a living for ourselves,” Lee Hsien Loong said in his National Rally speech. He said the country should not give the impression that Singapore is becoming xenophobic and hostile to foreigners.

“It would severely damage our reputation as an international hub. It would cost us investments, jobs and opportunities. It would be disastrous for us.”

While Singapore will continue to tighten its foreign worker policies, it will only do so gradually so as not to hurt companies, Lee said. The government will also pass a law to ensure fair recruitment, he said.

The Lee government has been tightening foreign worker policies for several years as it took steps to promote local hiring, including raising the wage threshold for issuing work permits.

Just under 30% of Singapore’s 5.7 million population are non-residents, up from 10% in 1990, according to government statistics.

On Sunday, Singapore reached the key milestone of completely vaccinating 80% of its population against COVID-19, setting the stage for a new reopening of the economy as the country prepares to live with the virus as endemic.

“We may have to hit the brakes from time to time, but we want to avoid having to hit them once,” Lee said.

“So in the next phase, we will move step by step not in a big shock like some countries, but with caution and progressiveness, feeling our way forward,” Lee added.

Aradhana Aravindan and Chen Lin reports in Singapore; Edited by Hugh Lawson

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