Singapore Prime Minister Lee Hsien Loong pledged to tighten restrictions on foreign workers, tackling an issue that has stirred anger in the traditionally open city-state as it recovers from a pandemic-induced recession.
In a key policy speech during a national day rally on Sunday night, Lee said his government will further raise the visa criteria for expatriates, increase salaries for low-income laborers and hold companies to account for their hiring practices. Changes to the salary criteria for overseas workers would be done “gradually and progressively” to show that Singapore wants to keep policies outward looking to accept competition, he added.
“We have to acknowledge the problem, so we can address Singaporeans’ legitimate concerns, and defuse resentments over foreigners,” Lee said. “Only thus can Singapore remain open, and continue to grow and progress,” he added.
Lee said it was imperative for the country to reopen to the world after largely shutting its borders early last year, just as it reached a milestone to fully vaccinate 80% of its population -- outpacing most advanced economies.
Foreign labour was a hot-button topic in last year’s elections due to the perception of unfair hiring practices against locals and still-low wages for blue-collar workers facing rising costs and a pandemic that led to the country’s worst-ever economic slump.
The discontent played a big part in leading the ruling People’s Action Party to its weakest-ever showing in a July 2020 election. A month later, the government raised the minimum qualifying salaries for employment pass holders -- in managerial or specialized roles as well as the financial services sector -- and for those with “S Pass”, or mid-level technical staff.
Lee said there were often complaints over the hiring practices in the tech and financial sector. He noted, however, that these companies are regionally and globally focused and the skills required for the roles are in short supply.
“Had we not allowed them to import the EPs they needed, the companies would not have come here, and Singaporeans would have had fewer opportunities,” Lee said in reference to the coveted employment passes for foreign workers.
