The draw: low crime rate, family-friendly and homeland nearby

Indian national Nikhil Engineer, seen here with wife Mansi and their children Neal, four, and Rhea, one, came here to be nearer relatives in India and because Singapore is a good place to raise their children. He is on an employment pass but plans to apply for PR soon.

# Bulk of Indian nationals are work permit holders

# Number of professionals rising

# Surge in firms owned by Indian expatriates

# Boom in businesses and services catering to them

# Growth in domestic cricket league

FOREIGNERS from India now form almost a quarter of the 1.79 million foreigners and permanent residents (PRs) who currently live here.

The number of Indian nationals living and working here has now crossed the 400,000 mark, according to the Indian Embassy.

Two years ago, the number stood at around 200,000.

Although the bulk of them are work permit holders with jobs in the construction or marine sectors, a rising number are professionals, said Mr Bernard Menon, centre manager of the Migrant Workers Centre, a non-governmental organisation that provides assistance to foreign workers on employment-related issues.

Industries such as engineering, information technology and finance are among the areas where Indian nationals are making a name for themselves, said Mr Vasanth Kumar, the Indian Embassy’s first secretary.

Many are also striking out on their own once they arrive here.

The Singapore Indian Chamber of Commerce and Industry (SICCI) has seen a surge in the number of companies owned by Indian expatriates, from around 1,500 in 2006, to 3,000 today.

Said an SICCI spokesman: ‘Their businesses mainly lie in information technology, finance, trading, and food and beverage.’

A boom in businesses and services catering to Indians has also resulted.

The Global Indian International School, for example, now has 4,000 students – four times the number it had five years ago. Indian nationals make up 90 per cent of its students.

In Little India, about 20 per cent more grocery shops and restaurants have popped up in the past five to 10 years to cater to growing demand, said Mr Raja-kumar Chandra, chairman of the Little India Shopkeepers and Heritage Association.

Indian nationals are also making an impact on the playing field.

The Singapore Cricket Association said its domestic league has grown from 36 teams in 2007 to about 90 now.

Mr Dharmichand Mulewa, the association’s general manager, said many of the new teams are made up of Indian expats.

However, not just the cricket league is growing. Across Singapore on weekends, stumps are as common a sight on playing fields as goal posts.

There were 1.79 million foreigners and PRs in Singapore last year, up from 1.04 million in 2000. The Immigration and Checkpoints Authority does not provide a breakdown on the number of foreigners here by nationality.

However, National University of Singapore sociologist Gavin Jones, who researches population and development issues, believes Chinese and Indian nationals, as well as Malaysians, Indonesians, Filipinos and Bangladeshis, form the largest groups of foreigners and PRs here.

‘Most new PRs in recent years have come from Asian countries, and it is generally accepted that the Chinese, Indians and Malaysians are prominent among these,’ said Professor Jones, when asked to explain.

Indian associations such as the Indian Women’s Association and SICCI told The Straits Times that Singapore is gaining popularity as a destination of choice among Indian immigrants because it offers a business- and family-friendly environment, has a low crime rate and is just a short flight from India.

A large proportion of the Indian immigrants here come from Tamil Nadu, said Mr Nikhilesh Gupta, president of the Bengali Association Singapore. Apart from proximity, language is a key reason they make tracks for Singapore.

‘Tamil is an official language here, and it gives them a kind of connection to Singapore, in terms of feeling more at home,’ he explained.

Some who left India for other countries have also found their way here.

Mr Nikhil Engineer, 34, who left London with his family to work in Singapore two years ago, is one such example.

He said he came here to be nearer relatives in India and because Singapore is a good place to raise his two young children.

The vice-president of product control at Credit Suisse said: ‘It is the easiest place to settle down in; everything is straightforward.’

Asked if he planned to stay here permanently, he added: ‘That’s the plan. It would be tough to adjust to another place because Singapore tends to spoil you.’

Source: Straits Times, 20 Jul 2010

Return of expat professionals becoming apparent: director of HR firm

(SINGAPORE) A sizeable proportion of foreign workers entering Singapore this year could be highly skilled, some economists say. Recruiters’ observations of the rising number of expatriate professionals now being hired point the same way.

The strong economic rebound, coupled with a tightening labour market, could mean Singapore will need more than 100,000 extra foreign workers this year, Prime Minister Lee Hsien Loong said last week. While the bulk of these foreigners are likely to take on lower- wage jobs in manufacturing with ramped-up production as well as the retail, F&B (food and beverage) and construction sectors, a good number will also be needed for top posts in sectors such as finance and IT.

Economists point to available data on jobs this year which shows surprisingly weak job creation in the hospitality-related sectors and the contrasting strength in sectors like financial services.

Citi economist Kit Wei Zheng noted that the official first-quarter labour market report showed 100 net job losses in hospitality, reflecting either tighter enforcement of existing foreign worker quotas or front-loaded hiring for the integrated resorts in 2009′s last quarter. In contrast, the financial sector added 5,500 jobs in Q1.

‘Financial sector job creation could be sustained partly by relocation of some activities away to Singapore, as financial regulatory reform dampens profitability of such activities in the developed market,’ said Mr Kit.

Rising wages, another sign of labour market tightening, were also seen in the financial services sector, said OCBC economist Selena Ling. In Q1, overall real earnings rose 2.8 per cent. For the services sector the rise was 2.4 per cent but average real earnings in the financial sub-sector rose 4 per cent.

This demand for manpower is looking abroad for highly-skilled labour now.

‘The return of post-recession expatriate professionals has only become apparent in the last quarter,’ said Karin Clarke, regional director (Singapore & Malaysia) of global recruitment and HR services company Randstad.

It is a ‘candidate-short market’ now, said specialist recruitment firm Ambition Singapore’s managing director Paul Endacott. ‘Investment banks, private banks, asset management, wealth management institutions are finding it much more difficult to hire locally for vice-president levels and above,’ he said.

The rise in foreign top talent joining banks in higher level roles has also been witnessed at specialist professional recruiter Robert Walters. Elaine Truong, senior consultant of the firm’s financial services division, said: ‘Talent in top demand include those with specialised skills set to fill the shortage of candidates available locally.’

Outside of finance, there is also high demand for ‘foreign white-collar professionals’ to fill ‘specialist IT posts, engineering positions within the oil & gas sector and specialist healthcare professionals’, Randstad’s Ms Clarke said.

The general trend is one of ‘expats coming to Singapore willing to work, although there are signs that expat pay package expectations are relaxing, though this is not yet the norm’, said Mark Sparrow, managing director of Kelly Services Singapore.

And though hiring usually slows in Q4 due to impending bonuses, Robert Walters’ finance and risk manager Neil Dyball expects this year to be an exception for mid to senior- level appointments, as companies look to source talent from the UK, US, Hong Kong and Australia.

Source: Business Times, 19 Jul 2010

MORE than 100,000 foreigners are set to enter Singapore’s workforce this year, an increase fuelled by the record growth the Government is forecasting for the economy this year.

Prime Minister Lee Hsien Loong, in projecting the bigger inflow yesterday, said it was unavoidable as the labour market was bursting at the seams.

‘If we don’t allow the foreign workers in, you are going to have overheating,’ he told Singapore reporters at the end of his six-day official visit to the United States.

However, he assured Singaporeans that the Government is managing the number, saying the foreign worker levies have been calibrated to moderate the inflow.

But Mr Lee added: ‘Even with that, I’d imagine there will be more than 100,000 extra foreign workers this year.

‘I cannot see it otherwise. But we have to accept that.’

Higher levy rates and a tiered system that makes it increasingly costly to employ many lower- and semi-skilled foreign workers were announced in February.

But they came into effect only at the start of this month to give employers time to adjust and to invest in improving productivity, which is Singapore’s new catalyst for growth.

The projected inflow is, however, a slowdown when compared to the surge in 2007 (144,500) and 2008 (157,000), said economists and employers interviewed.

In fact, the pool shrank by 4,200 in the downturn last year, reducing the total foreign population to about one million.

Said economist Leong Wai Ho, of Barclays Capital investment bank, who did not think the new inflow is excessive: ‘The addition of 100,000 probably reflects more discriminate and careful use of foreign workers, now that the levies have gone up.’

Mr Lee’s comments coincided with the Ministry of Trade and Industry’s announcement yesterday of first-half growth heading for a new peak.

It led the ministry to raise its growth forecast for Singapore this year, saying it will be 13 to 15 per cent instead of its earlier projection of 7 to 9 per cent.

The need for more foreign workers this year was implied by PM Lee at the May Day Rally, when he said that given the projected strong growth, ‘a higher inflow of foreign workers is unavoidable’.

Economists like Mr Leong see many of them flowing into the hotel plus food and beverage sectors, as well as high-end industries such as electronics and marine, where demand for semi-skilled S-pass holders is high.

The hospitality sector is particularly hungry for workers, following the opening of the two integrated resorts and a surge in the number of tourists landing on Singapore shores.

Said Hotel Rendezvous general manager Kellvin Ong: ‘Once we hit the quota, it’s very hard to hire more. The Government has to make it more competitive for us to hire foreign workers when we need to.’

About 10 per cent of its 140 employees are foreigners, and like others in the hospitality industry, it struggles to get locals to work in lower-skilled jobs such as waiters and chambermaids.

But most employers cheered PM Lee’s comments, saying it would ease the pressure, especially for small and medium-sized enterprises in sectors struggling to attract Singaporeans.

On top of that, they face a rising wage bill, with the rise in foreign worker levies and the impending one percentage point increase in employers’ contribution rate to the Central Provident Fund.

Said Mr Teo Siong Seng, president of the Singapore Chinese Chamber of Commerce and Industry, which has some 4,000 members: ‘We support the government policies to cut reliance on foreign workers and push for productivity, but in some sectors, it will take time to see results.

‘A more controlled inflow of foreign workers will benefit the country.’

In February, the Government, in making a commitment to reduce the country’s reliance on foreign workers, said it would limit the numbers to one-third of the total workforce, which stands at around three million.

Mr Teo, a Nominated Member of Parliament, cautioned his fellow employers to view this year’s inflow as a ‘temporary relief measure’ and not to let up on their productivity efforts.

The need to focus on a productivity-driven economy to achieve sustainable growth for the next 10 years was also stressed by PM Lee and Manpower Minister Gan Kim Yong.

Said Mr Gan: ‘In the short term, we would need to tap on more foreign workers to support economic growth.’

But it has to be done ‘while maintaining the longer-term goal of reducing over-reliance on foreign workers through investments in productivity’, he added.

Labour MP Josephine Teo said the huge foreign inflow was not a surprise to unionists, following PM Lee’s remarks in his May Day Rally speech.

‘In the short term, we may have to accept opening our doors a little bit more,’ she said, adding that workers in companies facing a shortage may find the increase in foreign workers ‘a welcome relief’.

In the meantime, the labour movement will redouble its efforts to improve productivity, she added.

Source: Straits Times, 15 Jul 2010

PM Lee says economy will overheat if more foreign workers not let in

Lee Hsien Loong sees the inflow of at least another 100,000 foreign workers into the country.

And this despite the government’s efforts to manage the flow with finer calibrations of the foreign worker levy, he told Singapore reporters at the end of a working trip to the United States.

‘Even with that, I imagine there will be more than 100,000 extra foreign workers this year,’ Mr Lee said. ‘I can’t see it otherwise, but we have to accept it.’

He said it can’t be helped because the labour market is already very tight – and without letting in more foreign workers, the economy will overheat.

While Singapore should be happy about its sterling economic performance this year, Mr Lee said it must also guard against the expectations that it can continue to repeat the performance effortlessly year after year.

Instead, he said Singapore must make the most of its good fortunes now to restructure the economy, upgrade workers’ skills and improve overall productivity.

‘Unless we make these structured changes, we will not be able to sustain growth,’ Mr Lee said.

And he doesn’t mean yearly growth of 9-10 per cent, but 3-5 per cent. ‘(If we achieve that), we will be doing well,’ Mr Lee said.

He said the high economic growth attained so far this year partly reflected a rebound from last year’s downturn. It’s also partly due to new projects that have come on stream – in particular the two integrated resorts that have made a big difference in boosting tourism.

Mr Lee sees the sharp spike in pharmaceutical outputs, which have also made a big contribution to economic growth this year, to peter out in the coming months.

Government stimulus, especially the Jobs Credit Scheme, which has just expired, were not much help this year, because the economy is already in full employment, according to him.

‘I don’t see the labour market slackening this year,’ Mr Lee said. ‘We are very tight and we need more workers. So it’s right we have withdrawn the stimulus.’

Singapore’s economic growth beyond ‘the immediate rebound’ will depend more on the region – especially the growth in China and India – the global economy and how far and fast Singapore has moved in economic restructuring, he predicted.

Mr Lee said the government, which has taken steps to cool the heated property market recently, would continue to keep an eye on it. And it would introduce more measures if necessary.

When asked, Mr Lee also said he has not decided when to call for the next general election which is due in 2012. ‘It’s too early to say,’ he said.

Mr Lee and his delegation are due back today.

Source: Business Times, 15 Jul 2010

THE solution to the public housing conundrum is not to build more new HDB flats for sale because the problem lies in the resale market.

The resale market is where Singaporeans must compete with permanent residents (PRs) for a place to live.
Rental housing also sees the same competition, even though there are not enough rental flats to meet the needs of all deserving citizens.

The shortage of rental flats has its history in the HDB’s decision to cut back on the building of two-room flats because they did not sell or rent well.

All new flats since then were constructed for sale only. The ratio of flats for sale and those built for rent became more skewed in favour of new sales so much so that upon the influx of PRs, there were not enough for them to rent.

The decision to allow PRs to buy public flats in the open market was because there was no other way to accommodate the new immigrants.

If there was a huge supply of HDB flats of various types for rent for all, including low-income Singaporeans, prices of HDB flats would have stabilised and not have caused consternation to the public housing authority.
These new immigrants could stay in such rented HDB flats until such time when they decide to take up full Singapore citizenship; only then would they be allowed to buy an HDB flat.

Becoming a citizen, therefore, would earn them the right to purchase an HDB flat. The gesture would also demonstrate these immigrants’ loyalty which, previously, was just speculation rather than reality.

If building executive condominiums and build-to-order flats are the Government’s only way of fighting rising costs in public housing, our children will have to wait for us to pass on before they can inherit a roof over their heads.

Source, Straits Times 20 January 2010

The first group of foreign workers moved into a converted dormitory at Serangoon Gardens estate on Friday. The issue first made headlines last year, with nearby residents worried about safety and privacy issues.

A wire fence around the dorm is all that separates the former school from a tennis centre and the rest of the Burghley Drive private estate. But many residents in the area on Saturday did not seem to notice the foreign workers’ presence.

When plans for the foreign workers’ dormitory were first made known last year, it caused a huge ruckus in the neighbourhood. Some were worried about safety and privacy, while others cited concerns over traffic congestion in the mornings.

To help address residents’ concerns, authorities have built a separate entrance to the compound, away from the private estate, and will plant tall shrubs along the fence.

However, some are still sore about the way authorities handled the matter initially.

Goh Bock Seng, a resident, said: “Singaporeans are used to living in a community. If the workers are educated and they know (how) to behave themselves, I think it’s fine. We’ve finally accepted the fact, but we just want to say that we should have been consulted first.”

Another resident, Fang Shihan, said: “For me, personally, I would like to get to know them better since we’re going to be living in close proximity. Maybe we could have tours inside to see how they live, what they do, instead of having this little alien town that we don’t understand.”

Some residents said other issues may crop up after all 600 workers have settled in. Minister in the Prime Minister’s Office Lim Hwee Hua, who is also the Member of Parliament for Aljunied GRC, agrees with that view.

“When the dorm is up and running, a lot really depends on whether things are as planned or there are new issues. But I doubt there would be issues that would surprise us,” said Mrs Lim.

The dormitory will house male and female workers from the manufacturing and services sectors. Authorities will assess the situation before deciding whether to increase the number of occupants.

Source: Channel News Asia, 5 Dec 2009