Sunday, December 15, 2013

Singapore Will Stick to Foreign-Labor Policies After Riot

Singapore, unsettled by its first

riot in more than four decades that involved 400 foreign

workers, will continue to tighten the influx of overseas

laborers, said Acting Manpower Minister Tan Chuan-Jin.


While foreign labor has contributed to the growth of the

economy, there has been a cost, including a strain on

infrastructure, Tan, 44, said in an interview with Haslinda Amin

on Bloomberg Television on Dec. 13. The government is also keen

to boost the productivity of local companies, he said.


“We are continuing to tighten our manpower policies

because we do want to move to a leaner approach,” Tan said.

Asked whether poor living conditions contributed to the riot and

if the government would step up measures to ensure foreign

workers’ well-being and safety after the incident, he said

“it’s premature to conclude that actually it’s because of all

these other deep-seated reasons and therefore the riot

happened.”


Discontent over the number of foreign workers, who make up

about a third of the workforce, has risen after years of open

immigration and led to the worst election result for the ruling

party since independence. The riot that broke out on the night

of Dec. 8 in the city’s Little India district after a bus ran

over and killed an Indian national has reignited the debate

about Singapore’s dependence on overseas manpower.


A survey conducted in 2011 by the government among work-permit holders showed 90 percent were “relatively happy” to be

in Singapore, 80 percent wanted to stay and about 70 percent

were happy to recommend their friends and family to come to

Singapore, Tan said.


Dispute Cases


“It was a fairly large sample size and that has pretty

much been echoed by the feedback we’ve been getting,” he said.

“In the aftermath of the riot, again we’ve pushed out to find

out the sentiments and it’s quite consistent.”


Singapore authorities prosecuted five Chinese nationals and

deported 29 others over their involvement in an illegal strike

in November last year, an unusual public display of labor

discord. The striking workers, all from China, were unhappy with

their salary increments and raised concerns about living

conditions, according to their employer SMRT Corp. (MRT)


The manpower ministry has had about 3,700 dispute cases

over issues including salary and work conditions brought to them

this year, Tan said. There are around 1.1 million lower-skilled

foreign workers in Singapore, according to the Ministry of

Manpower.


Worker Curbs


In September, the city widened measures to contain foreign-worker inflows to include professional jobs, responding to

complaints that companies were hiring overseas talent at the

expense of locals. In February, the government said that

companies must pay higher levies for lower-skilled foreign

employees over the next two years and cut the proportion of

overseas workers in some industries.


“We’re beginning to see it take effect, the pain is being

felt by companies,” Tan said. “You do not know when exactly,

at which point it will bite and you don’t want to overdo it, but

a series of measures have been unfolding over the last few

years.”


Singapore added 33,100 jobs in the third quarter and the

unemployment rate was 1.8 percent in the same period, the

Ministry of Manpower said in a report on Dec. 13. The labor

market will remain tight next year and the government expects

some upward wage pressure in 2014, Ministry of Manpower

Divisional Director Adrian Chua said last month.


“If the government tries to implement ways to raise living

conditions of work permit holders, this will indirectly add

costs to producers,” said Joey Chew, a Singapore-based

economist at Barclays Plc. It “might actually make them more

wary about increasing, bringing in more workers.”


Reasonable Treatment


The island’s population has jumped by more than 1.1 million

since mid-2004 to around 5.4 million, driven by immigration,

leading to congestion and competition for housing, jobs and

education at a time of widening income inequality. A proposal to

boost the population to 6.9 million by 2030 prompted thousands

to protest in February.


Thirty-three people have been charged in relation to the

Dec. 8 riot, according to the police. The government banned the

sale and consumption of alcohol this past weekend in Little

India, which draws thousands of foreign workers on their Sunday

day off.


Tan said the nature of the rioters and where they are from

doesn’t indicate that labor relations contributed to the riot.


“I’m not denying that there are egregious cases, there

are, I see them myself,” Tan said. “But I wouldn’t therefore

paint that picture of the entire landscape. I think by and

large, workers here are reasonably looked after and we will go

after employers that mistreat their workers.”


To contact the reporters on this story:

Sharon Chen in Singapore at

schen462@bloomberg.net;

Jasmine Ng in Singapore at

jng299@bloomberg.net


To contact the editor responsible for this story:

Stephanie Phang at

sphang@bloomberg.net



Singapore Will Stick to Foreign-Labor Policies After Riot

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