September 16, 2009 - By BNP News

Singapore will restrict the flow of foreign workers as the global economic recession hits the city-state’s robust growth, announced its Prime Minister, Lee Hsien Loong.

Speaking yesterday to students at Nanyang Technological University, Mr Loong said, “We will not continue to admit people at this pace.”

“There is a need to be mindful of how quickly our society can absorb and integrate these new arrivals,” he said.

Singapore’s annual economic growth slowed to just 1.1 percent in 2008, compared to around 8.2 percent during 2004–2007. The unemployment rate hit the highest level in five years for the export-dependent economy.

More than 100,000 foreign workers came to Singapore each year for the last few years as the economy boomed. This brought the total number of foreigners to almost one million, according to Mr Loong. He also made it clear that his government was going to protect its workforce from outsiders who by working for less, take away employment from his people.

Last month, Singapore Manpower Minister Gan Kim Yong dismissed suggestions to relax foreign worker entry policies. “Instead, firms should consider hiring fresh graduates,” Mr Yong said.

“They should work with government agencies and the labour movement, which will help look for suitable workers.”

* Singapore has a strict policy when it comes to foreign workers. The government strictly controls from which countries companies can recruit. According to official government regulations, workers may only be recruited from Malaysia, People’s Republic of China (PRC), India, Sri Lanka, Thailand, Bangladesh, Myanmar, Philippines, Pakistan, Hong Kong, Macau, South Korea and Taiwan.

All of these nations are ethnically similar to the existing Singapore population and the outright refusal of the Singapore authorities to even consider emigration from non-assimilable nations is obvious.

Companies must also pay a levy for each foreign worker they employ. The amount of the levy varies according to the industry in which they work.

Finally, certain categories of employers in the construction sector are required to furnish an additional Security Bond for levy payment (also known as the Levy Bond) for each foreign worker employed. These categories of employers include:

– Employers who have defaulted on levy payments and whose workers’ work permits are cancelled as a result; 

– Employers who have been late in levy payments for three times within a 12-month period;

– Employers with a change of sole-proprietorship;

– New construction companies that are sole-proprietorships; partnerships; companies with paid-up capital of less than $50,000 applying for prior approval to recruit foreign workers for the first time.

The Levy Bond is $600 per skilled worker and $2,000 per unskilled worker. The total value of the Levy Bond is based on the number of foreign workers at the point when the bond is called for. The validity and monitoring period for the Levy Bond is 12 months, except for new companies, which is six months.

Singapore, therefore, has a strict policy in place to protect its own workers — unlike that of Tory and Labour created Britain.