SINGAPORE - Singapore faces a higher inflation rate and slower economic growth as the government allows in fewer foreign workers, Prime Minister Lee Hsien Loong warned Monday.
A tight labour market has hindered the expansion plans for many companies and some businesses may leave Singapore, Lee said. Meanwhile, growing demand for workers should boost wages, which will increase business costs, undermine competitiveness and quicken inflation, Lee said.
The government has struggled to stem the inflow of foreign workers in the last couple of years amid a voter backlash against stagnant wages, crowded transportation infrastructure and higher housing costs. After their numbers surged during the last decade, foreign workers now account for about a third of Singapore's workforce. Full story
