Tuesday, February 22, 2011

The Addiction of the "Cheap Foreign Labour" Drug

The latest hoo-ha for the recent days had been about the 2011 Budget, as well as the fierce debate about the relentless dependant on Foreign Labour in our work force.

On one side of the debate, "supporters" are saying things that are inline with what the PAP is advocating: that we Singaporeans should up one ante and go up the value chain instead on stagnating at our comfort zone.

One example I quote: "If more jobs are going to foreigners, we should reflect on why we are getting less competitive in the job market, compared to complaining about the government policies. The demand comes from the companies as there is a lack of talent almost everywhere. Why is the debate always centered around foreign talent being "cheap"? Closing the door is only going to lead us to death."

"The demand comes from the companies as there is a lack of talent almost everywhere. Why is the debate always centered around foreign talent being "cheap"? Closing the door is only going to lead us to death."


But on the other side (which I'm probably on), people are arguing that the Government's tweaking of the economy is causing things to go haywire and that its just an "easy/lazy" solution to pump up the GDP.

I quote: "If so, all the more PAP should not interfere the labour market. Let the labour market correct on its own based on supply and demand. If local engin supply is low, firms will have to increase wages to a level to attract back the supply, which will also allow Singapore to build its own local talents accordingly in that niche area. Instead of spending efforts to make engineering a more lucrative career, the PAP takes the shortcut, importing cheap labour from China and India, suppressing the local engineering wages. There's a limit to how many ppl u can fill up in this little island and the result is over-reliance on foreigners- a habit once addicted cannot be kick. And, once the foreigners made enough, they move back to their country while there are firms abusing this cheap foreign labour policy. What's the point of having locals in managing role whom only knows how to "talk" but cannot do real work? My view is such economic model may not be sustainable over the long run. What innovation hub can u create out of a labour system like this?

Go take a look at the welders, the technicians, the construction workers in Australia, for example. Why they can gets locals to fill up and why Singapore can't. It's addiction.
"

"My view is such economic model may not be sustainable over the long run. What innovation hub can u create out of a labour system like this?"


The thing is that, the existence of Cheap Foreign Labour is similar to the use of Drugs. Its an addiction thats difficult to kick, and had been served by the PAP for the past 10 years. Today, many of companies today are addicted and very dependant on Cheap Foreign Labour, and locals whom are doing the same job are relegated to excepting the "inevitable" and had to accept stagnation or even decrease of salary just to keep up.

I'm not too how much "upgrading" can do to actually increase your salary in most of the industry. Take my profession as a designer. I'm competing with foreigners whom are willing to take up lower than market-rate pays, just to secure a job and hopefully gain PR status very soon (many of them graduated in Singapore). And take your imagination on a ride, how different can a designer's job be or "advanced"; as an employer, you are given a chance to hire a cheaper worker - you would do it!

"And take your imagination on a ride, how different can a designer's job be or "advanced"; as an employer, you are given a chance to hire a cheaper worker - you would do it!"


A company or business owner have little incentive to "invest" in human resource when the margins can be increased just by sacrificing local workers and hire foreign ones (despite the increase is very little). The decision to not invest in the people would also mean that the company would not lightly be embarking on a strategy of offering higher value products and services (since they wont have the people to do it, nor the courage to take up such a risk) nor taking a serious look at improving "productivity" - since you cant expect newbies and PR-wannabes to perform extraordinarily.

"The decision to not invest in the people would also mean that the company would not lightly be embarking on a strategy of offering higher value products and services"


Remember, foreign talents, especially those PR-wannabes' focus is to keep their job until that get PR and thats it. Most of them do not have the mindset of excellence or have a look at advancement. The life and death of the company they are working is of the least of their concern. As such, cheap foreign workers and PR-wannabes have little loyalty or pride in their job and given the chance to slack, they would probably take it. (I'm not guessing, its based on conversations with business owners whom hires foreign workers and from observations)

The most disastrous thing now is that, Singapore is already addicted to this drug. We are now hooked by the ready and steady flow of cheap labour; and the government seemed keen and determined to continue on this short-term policy.

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This reminds me of the story of our water supply in Singapore. Its purely because of our lack of water resources that Singapore decided to invest and develop our own water resources and technologies. Its because that water is in short supply that we innovate for solutions and increase it. If Singapore had taken the easy path of only importing cheap portable water from Malaysia and decided not to develop our own source of water supply like Desalination and NEWater, the future would not be as certain as it is...

And if we had not depend so much on Foreigners for labour, our industries would have innovated to make better use of the increasingly more expensive workers than the current situation of sticking to the same "proven" formulae; and our workers would have increased their productivity purely because of the companies initiatives to make better use of them, and not get criticised and humiliated by our PAP leaders whom thought they knew better.

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