PSP's foreigner-related discourse hurts perceptions of Singapore's openness: Tan See Leng

WHAT the Progress Singapore Party (PSP) has said in relation to free trade agreements (FTAs) and foreigners is detrimental to business and investor sentiment regarding Singapore, said Manpower Minister Tan See Leng in a Parliamentary debate on jobs and foreign talent on Tuesday.

PSP Non-Constituency Members of Parliament Leong Mun Wai and Hazel Poa had filed a motion on foreign talent policy, while the government had filed its own motion, with both motions being debated together.

Dr Tan noted that Singapore has already fallen from first to fifth in the Institute for Management Development's (IMD) 2021 World Competitiveness Ranking, due partly to Covid-19.

In particular, Singapore slid down in rankings such as "attitudes towards globalisation", "availability of skilled labour" and "immigration laws preventing companies from hiring foreign labour", he added.

"I will say this plainly to Mr Leong: What he and his party spew, attacking CECA (Comprehensive Economic Cooperation Agreement) and FTAs and foreigners in general, has an effect on IMD's assessment, and on business sentiments, here and overseas," he said.

"Investors watch and wonder: how many other Singaporeans feel this way? Has Singapore become less welcoming of foreign investments, of global talent?"

While the PSP motion focused on job-related anxiety "caused by the foreign talent policy", Dr Tan rejected this framing. The way to address such anxieties is to invest in developing the local workforce and ensure that foreigners complement rather than displace locals, he said.

To show that the increase in foreign PMETs (professionals, managers, executives and technicians) has not led to worse outcomes for locals, Dr Tan gave figures on how local PMETs have fared over the last decade.

From 2010 to 2020, foreign PMET numbers rose by 110,000 or about 46 per cent, to 350,000 from 240,000 previously. Local PMET numbers grew by 300,000 or about 29 per cent, to 1.33 million from 1.03 million before.

Even in sub-sectors which hire more Employment Pass (EP) holders, local PMET employment grew more. In finance, infocomm, and professional services, EP and S-Pass holders grew by 40,000, but local PMET numbers rose by almost 155,000.

Local PMET unemployment has generally remained at 3 per cent or lower "outside of crises", while their long-term unemployment rate has stayed below 1 per cent.

PMET job vacancies have trended upward and hovered around 30,000 for the past five years, currently including 4,300 in infocomm, 4,100 in finance, and 2,700 in professional services.

And median local PMET wages have risen to S$6,300 in 2020 from S$4,600 in 2010, up 38 per cent, or 21 per cent in real terms.

Turning to the PSP's proposals, Dr Tan asked the PSP to explain how these would not "dampen Singapore's attractiveness to foreign investors and cause poorer outcomes for the vast majority".

Businesses, trade associations, and chambers have faced difficulties finding enough locals with the right skills, which has hampered their expansion plans, he said.

"The ten biggest MNCs in Singapore alone create around 30,000 local PMET jobs. If they decide to leave, we would not be talking about recouping 'tens of thousands' of jobs, but about losing more of them instead."

He also asked whether the PSP has consulted businesses on what they think of the current foreign labour policy, adding that many - including small and medium enterprises - are already saying that they cannot access the foreign PMETs they need.

Rejecting the PSP's proposed levy on EP holders, Dr Tan said that this would not help to regulate quality. A levy would eat into an employer's budget for an EP holder, narrowing the pool to those who would accept the lower salary, he said.

As for the PSP's proposed quotas and caps, Dr Tan said this could result in the loss of high-end jobs for locals.

He cited the example of Mizuho Bank setting up a project financing team in 2003, with Singaporeans accounting for 40 per cent of that team then. Now, Singaporeans form 70 per cent of "a much larger office". If quotas had been imposed at the start, Mizuho Bank may not have come to Singapore in the first place, he said.

Instead of a hard cap, there is already a lever by which the government can address a high concentration of certain nationalities, he added: the Fair Consideration Framework, with a watchlist of such firms.

Dr Tan also gave a rundown of various fair employment guidelines that the tripartite partners have issued over the past two decades.