OPINION: Singapore: Economy bounces back, but…? - Prof Mukul G. Asher

East Asia Forum, 31 Dec 2010
Instead of addressing demographic changes through constructing robust social safety nets which are affordable, Singapore has relied on foreign manpower, particularly at the lower-paid end of the workforce, but also in the area of skilled labour, to sustain growth. Predictably, the share of foreign workers within the total labour force has already exceeded one-third, and at current rates, could exceed 50 per cent in coming decade. This policy, along with liberal provisions for the grating of Permanent Resident and Citizen status, and rising inequalities even when only employment income is considered, has created a strong need for political management. But currently, amongst policy-makers, the preference for growth over other objectives is strong, and low political contestability means that it is difficult to conduct a debate on this issue. Full story