Singapore's foreign workforce and productivity?

Ho Kwon Ping, executive chairman of Banyan Tree Holdings, wrote an op-ed in today’s Straits Times newspaper. In it, he argued:

“A quality service culture therefore does not exist in Singapore because of the vicious circle where relatively cheap foreign labour displaces the need to train and attract Singaporeans. In the end, because of our addiction to low-cost foreign labour, overall productivity growth is low even as the economy continues to grow.”

Do you agree? Why?

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  • I have to agree with the quote, but to a certain extent. Quality service culture is really hard to find in Singapore. Either because they are not trained or the they simply don’t bother.

    Yes, Singapore is addicted to the low-cost foreign labour, but they forgot that educating is still important. It would be the same if they employ Singaporean, they will still need to educate them by sending them for courses where appropriate. They cannot expect these people to start working without educating them on the necessary standards. We all know, no matter where these people come from, their surroundings/understanding/culture is different from ours. Due to this, the productivity dropped to a whole lot due to no-motivation.

    Now, Singaporean are so picky when it comes to work. A country that is in its developing-developed stage, certain Singaporean are not willing to do certain work. Take building industry, they won’t want to stay under the sun to do all those heavy work. Furthermore, Singaporean already have the mindset that those jobs are for foreigners.

    At times, in the service industry, those Singaporeans who are in the management industry just do not know how to show a good example.

    I have one very bad experience at one of the fast-food restaurant (not naming them). It could be a very good example. The place had a good combination of Singaporean and foreigners. Singaporean being in the management level while the foreigners a normal server. The management herself do not show good example to her employees. Due to this, the productivity of the workplace is affected. The best thing was, the employee was like her too (though indirectly). Service simply not there.

    Educate both Singaporean and foreigners properly with the necessary skills.

  • Agree.

    Why many contractors are using foreign labours mostly are due to the nature of work could not be engauge by Singaporeans. Example, road cleaner, construction worker and grass cutter.

    For the employer, the cost of hiring a foreign worker is almost equaliant to hiring a Singaporean. But the problem is most Singaporeans are educated now and wanted a job to be in the office or be in the management level, not being a skilled labour.

    Lets look at Australia. An average tree worker earns A$25 per hour, 35-40 hours a week. thats about A$4000 per month!

    What about the tree workers in Singapore?

    If we can encourage more Singaporean to work like the aussie style, by giving a better and attractive incentive, could we bring up the standard?

    The new Singapore work force will emphasis on being the management level, having university degree and sit in front of a computer.

    If one day, all the foreign workers would leave Singapore, we will collapes.

    Source(s): http://singaporedream-rtw.blogspot.com/

    The first Singapore couple to complete round the world trip on a motorbike. 2008-20

  • I would agree to a large extent. Unlike the past, many employers are now hiring foreigners because of the cheaper labour cost. As a result, the overall salary of a job position has been lowered, and this has kind of deterred Singaporeans from taking up the job because of the disproportion between the current standard of living and salary. Perhaps some may argue that it is Singaporeans ourselves who very picky over the jobs and that without foreigners, who would want to work as construction workers or cleaners. I would say that this is not always the case. Foreigners are not only replacing the locals from low-skilled jobs but also those high position jobs. Just look at the number of foreigner lecturers in university and restaurant chefs today. I don’t think Singapore would lack its own talents in such areas but rather, these foreigners are preferred because of their lower pay. A small group of foreigners to help in developing Singapore’s productivity and economy is good but too much is unhealthy, and this is the very situation that we are in now. In fact, many locals are now complaining about these foreigners competing jobs with them and they are at the advantage because after all, most of them are not going to stay here forever, and they don’t experience the full impact of the standard of living in Singapore like the locals do.

    To cite a few examples: We have foreigners as cleaners, CEO, lecturers, managers, chefs, construction workers etc. Pay rise are not very common nowadays even in those big companies, with the emphasis on minimising costs, many companies are turning to foreigners. The locals, as a result feel that there is little incentives to be more productive with the lower pay. I really hope the government can do something to address the problem but I suppose this won’t be the case so soon. I hope it is not until when the foreigners start to fill up even the government ministerial positions then the government start to realise that the problem is indeed serious.

  • I’m a foreign professional who wants to comment on this topic and I hope I can speak freely.^_^)v

    1st Question: I don’t agree.

    2nd Question: I believe that these annotations are just product of emotional stress. When I was not yet here in Singapore I’ve always thought that Singaporeans are very keen, sharp, highly respected and strict but understanding. And so when I get here people are just — usual. I mean, we all have likeness and differences. And my point is, not only Singapore in the world who’s facing a certain issue and others don’t and possesses a thing which noone don’t. Do others just kick off the foreigners out of their own country? But if you still wish and if you’ll do, do you think it will solve this issue? Then asked again, why in the first place Singapore must hire foreigners years ago (and until now)? Is it today just the time to ask the foreigners out and tell them Singapore don’t need them anymore?

    I still believe, Singaporeans still have the edges and all you need to do is break free and prove what you have..and that’s what I can see from my local colleagues and connected local friends and authorities. It is not the training but the question is, are you willing? Productivity relies on willingness and Singapore don’t need to attract locals because this country is always better to be served by it’s own people. If you’re jobless and educated, will you wait and sit for too long to have the job you’ve always wanted? What is quality service for if the locals won’t be accounted of it? Go out, apply and accept the job. Why wait for a better pay, does it always come for a quality service you could give?

    I’m not talking against or in favor of anyone nor want to provoke any discussion from anyone but this is just my opinion. Right answer/s will surely prevail as long as the issue will not be sensationalized. Be open-minded, speak less but think a lot. Everyone has our own choice and our choice will make our future. Once my previous Singaporean senior colleague said, “No need to find-fault of others, every single contribution of yours will surely be rewarded and though it may not be enough but it will still be rewarded.”.

    More power and Godspeed to all of us.

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  • Hi Actually This is sort of Very True. We should have a serious look before we all start jumping the wagon and saying things. Foreign Works entry into this country is due to the fact that we are a society of lease a secondary or 99% educated citizens. But With this education level not much of us would like to go into any sort of menial jobs. So In this case let me put a straight question to you would a MBA or PHd holder be in the construction industry. The answer would be no. And this would be the areas where we need most foreign workers. To build our Houses etc. But Yes this brings to another point also would think a foreign of Higher Educations would come to Singapore as a Contruction worker?

    But in other sectors too most employers have used 2 reasons to divert some reasons for not hiring Singaporeans. 1.”Oh our customers are China Base.” 2.AH I can get help from SG govern for monetarily so I can use a excuse that Singaporeans demand high wages and not suitable, hence I use this reason to employ Foreigners.

    In Actual fact its the Foreign, who are the ones in fact not suitable for certain jobs in Singapore. because the SG working culture is something totally different. It got Speed/Efficiency/Management/Responsibilities and Knowledge of jobs.

  • First of all the , its not only Singapore which is wanting low cost foreign labours but almost all the countries are wanting the same. If you select any country which is hiring a foreign labour, the countries Currency rate is always much much higher that the countries from which they hire their labour, I mean the exchange rate .

    But by saying “low cost” foreign labour , it does not mean that those people are not capable of doing productive work but it inturns depends on the respective companies training and development activities for those people whom they hire from other countries.

    Here there are many restrictions in giving training to those, because sometimes language is a restriction due to which an effective training is not possible.

    So if a company is taking a decision to hire a foreign labour which they call intenally as “Low Cost Labour” , then they should be also capable of giving the same kind of training in an effective way which they normally do with when they hire a localite.

    So to conclude “Low Cost Labour” does not mean llow productivity but its the capability of the respective company to train their employees to the same level as others.

    If it had been true that “Low Cost foreign labour ” is affecting the productivity then the term “Outsourcing” would not have become much popular.

  • I’m a foreigner and staying in Singapore quite long, and I think enough to have an opinion ^^”

    Definitely a lot more going on now in Singapore. How did Singaporeans become addicted to low-cost foreign labour in the first place? I think that this can cuts both ways.

    In fact, I saw that in Singapore, there are some companies who really don’t want to invest in their workers because they just want to save more costs and then they chose to hire from others cheaper, which wil be cheape labour force from overseas, but maybe this should not be encouraged.

    Howerver, Singaporeans can’t deny that many of them are just not willing to do labour intensive tasks. We hear about people complaining that these jobs are being taken away by foreigners but when they are given the opportunity, will they stick around long term? And how many of they will do that? Thats very interesting !!!

    Source(s): Source from TV news, Straits Times and Goolge.

  • I agree with this statement.

    There are comment that productivity may not be suitable all industry.

    My thoughts is that productivity is application for all industry.

    Simple task like sweeping and cleaning can have productivity.

    You can hire many cheap labour, but if the workforce cannot think,

    we will be struck in the old paradigm of doing the same thing we do daily without much improvement.

    We can sweep the floor all day without question, and might not have

    invented gadget like vaccum cleaner, because we are satisfied by the old way of doing things.

    The most important idea is that we need a workforce that can think in a productive manner.

    Especially for those labour intensive industry.

    They are the ones that need this idea of productivity the most.

    For example,

    You can have many cheap labour, but if they do not recognised the important of tools keeping for example. They might spend more time finding the tools rather than working on the task.

    If they do not recognised that the quality of work means $$$, they would just do sloppy work,

    which results in problem and cost that we have to deal with.

    In fact quality work is productive work. Spending a bit more money for good work done,

    rather than 1st cutting cost and end up fire fighting wasting time and money.

    This can also leads to safety and health……

    Improve administration procedure to improve work flow and reduce cost/time.

    To hinder the work flow just because a department wanted

    to protection themselves from trouble rather than looking at the company productivity as a whole.

    Every productive workforce mind set should be focus on doing work

    that can help to reduce cost in long run.

    Even a good quality customer service helps,

    which may end up with more customer satisfaction,

    less time dealing with complains.

    I once seen a small japanese noodle shop, can be managed by 1 person.

    Do you know how the japanese did it.?

    These are the kind of things that I have experience in my working life.

    Most of the unproductive procedure are well conceal from the higher management.

    If management from the top can push the idea of productivity through each

    and everyday of our work, I am sure we will have a better tomorrow.

    Business is about productivity.

    Productivity is about Quality, Cost, Time.

    Not only about machine, machine, robot, robot.

    It is about exploring a better way of doing the usual stuff.

    It is the only direction to survive.

    Don’t you think.?

  • Well I don’t mind having foreign labour working to help our country increase productivity.The only thing I hope is the quality of foreign talent like those working at the high level jobs can teach locals to improve their producitivity and skills.That way Singapore can benefit in the long run not just hire so much foreigners with low skills and productivity which take up the population of the country.Remember Singapore is a small country also known as the little red dot.Who knows what might happen if we increase the population at a really fast rate?You know the answer.

  • IMHO, the objective towards low cost is to profit. This is business world fairly. Government are leading the best example where each ministries seems to be driving profitability. Our cost of living have never come down in fact it continues to rise since the last 3 decades.

    Accepting foreigners/new citizen into our culture are just surface job. Let me put it the other way round, can Singaporean really adapt to “China’s culture”? If we genuinely able, then we would not be losing so much money in China. Of course there are some exceptions.

    My point is are foreigners able to blend into our multiracial culture? On the point of productivity, I think the statistics speak for itself over the last 20 years. Yes we can automate, retrain etc but using foreigners as sheer number game, it is a very short-sighted policy. We do need to look deeper into the issue of growing our population at all cost. Not just foreigners with W or S pass holders. I would even include many PRs in the PMET. They could possibly be indirectly responsible to the drop in productivity IF they are leading a team of workers with the “back home” mindset. So call hard worker and good worker does not drive up productivity.

    Best regards,

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