Singapore to tighten rules on hiring of foreigners

Singapore has been a magnet for foreign firms who have sought a minimally-regulated place in Asia from which to run their operations. Since these are foreign companies with mainly foreign clients (Singapore is far too small to be a real market for goods), it is no surprise that most of the employees are foreigners.

One can't say that the quality of life for the average Singaporean hasn't improved with the influx of foreign companies, even if they don't employ Singaporeans directly. These foreign companies and their foreign staff mus pay Singaporeans rent, for food, clothes, and necessities. Needless to say, they pay far more than others would.

The underlying problem is that the government in Singapore is beginning to take an ever bigger share of the overall revenue, which always affects the lower classes more than the higher ones. In order to save their own power, they will do as other larger economies have done, which is to buy votes from the common people by promising to take more from the foreign businesses, and give it to the less fortunate. The end result will be that the foreign companies and their foreign workers will move on to Kuala Lumpur, or Ho Chi Minh City, and leave Singapore. This will do the average Singaporean far more harm than good.

One can't say that the quality of life for the average Singaporean hasn't improved with the influx of foreign companies, even if they don't employ Singaporeans directly. These foreign companies and their foreign staff mus pay Singaporeans rent, for food, clothes, and necessities. Needless to say, they pay far more than others would.

Singaporeans are priced out of the housing market by foreign expats with company housing packages. "About 37% of Singapore’s total workforce of 3.36 million in 2012 were non-resident." - If this were to occur in some Western countries (like US, Germany or Canada), there would be riots on the streets against these foreigners taking over the native's jobs. 37% is ridiculously high.

They are going to struggle to grow their financial services sector then.

maglev101Sep. 25, 2013 - 09:51AM JST Singaporeans are priced out of the housing market by foreign expats with company housing packages. "About 37% of Singapore’s total workforce of 3.36 million in 2012 were non-resident." - If this were to occur in some Western countries (like US, Germany or Canada), there would be riots on the streets against these foreigners taking over the native's jobs. 37% is ridiculously high.

.. except that the Republic of Singapore (i.e. current Singapore) only dates back to 1965. The vast majority of "citizens" in Singapore are first or second generation, with almost no "native" population. About 80% of the Singapore "citizens" are Chinese (and no, not "of Chinese descent" - they were Chinese, then became Singaporeans).

Irony much? A country of first and second generation immigrants protesting about those darned foreigners?

Who wants to live there anyway? I went... it sucks.

Pretty loose requirements there

So? They reap the tax benefits, they should be happy. Imagine a small country being able to collect taxes from all those highly paid executives and professionals.

The Singapore Government is making it more difficult and expensive to hire foreigners. It is not increasing corporate taxes nor is it increasing taxes to foreign employees. The only "foreign" tax that it has increased is to non-singaporean property buyers. Singapore still has one of the lowest corporate and income tax rates in the world. It also has not had any history of capital controls like Malaysia and is not a communist country like Vietnam. Singapore will remain a financial hub for asia for a very long time. Go and ask Gina Rhinehart and Nathan Tinkler what they think....

Maglev101, don't be fooled - this is just government propaganda.

From personal experience, the major cause of the rent increase in Singapore is not rich foreign workers with company housing packages - there are very few expat packages here these days (unlike Tokyo). The problem seems to be greedy Singaporean landlords and cheap credit.

I moved from Tokyo just over 2 years ago and at the end of my 2 year housing contract my Singaporean landlady asked for a 25% increase in rent for me to stay on. Obviously her costs hadn't gone up 25% in those 2 years. She didn't seem to care when we pointed out that the identical unit below us (except that it had a large terrace and newly fitted out kitchen and bathrooms) had been empty for over 7 months and was advertised at a lower rent than she wanted to charge us.

You can still get an 80% mortgage here for 30 years at less than 2% interest - wish I could get that on my properties elsewhere!

This could be a very interesting story IF it evolves. I wonder if the government are just trying to buy time and keep locals relatively happy a bit longer.

The line that gets me in the story is where it mentions locals are competing with foreigners for a number of things, including

"space on public transport"

Foreigners are taking train/bus seats that could go to Singaporeans? Will people have to prove they are Singaporean before they can take a seat?

When Spore was run by Lee Kwan Yew, it was governed very well, but since then, gov't officials--probably the highest paid in all the developed nations--have not only lived off the success of yester-years but have been tactical (as opposed to strategic) and needless to say have lost loads of their citizens money all at the expense of the middle to low class Sporeans and the low-income immigrants:

http://www.scmp.com/business/banking-finance/article/1289104/singapore-cenbank-records-us84b-loss-currency-soars

@Market

Time to move down a floor, it sounds like.

About 80% of the Singapore "citizens" are Chinese (and no, not "of Chinese descent" - they were Chinese, then became Singaporeans).

Now a days, Mainland Chinese of PRC are dominating the Singapore property and labor markest. There are property speculation from Cash up PRC citizens. They used to bid over market value. Ordinary Singaporeans are struggling to compete with them in the property market. Some PRC imported Chinese have poor command of English even they are highly educated. However they have been favoured by PRC Inc investing in Singapore. Therefore discrimnation existed on Singaporeans.

From personal experience, the major cause of the rent increase in Singapore is not rich foreign workers with company housing packages - there are very few expat packages here these days (unlike Tokyo). The problem seems to be greedy Singaporean landlords and cheap credit.

Singapore is so small and expensive for running comfortable accomodation for Foreign expats. Not all of the landlords are greedy. Some are operating with loss rather than profit.

You can still get an 80% mortgage here for 30 years at less than 2% interest - wish I could get that on my properties elsewhere

Japan real estate market has peaked for sometimes. If somone will retire in Japan, it may be the good investment. However somone wants to get the meaningful return, Singapore is more promising because it is the strategic location. Unlike Tokyo, Singapore has low tax and attracting more business.

Unlike Tokyo, Singapore has low tax and attracting more business?

Only for the time being. Singapore is a relatively young country, and has not yet fully developed. The Singaporean government will eventually learn to play "the game" that the governments of other countries play. They will begin to play the poor Singaporeans against the the rich foreign corporations so they can rob both. The poor have the votes, the rich have the money. The government will buy votes from the poor using the money from the rich. Medium-size enterprises will be the first to leave, along with their staff. The gap between rich and poor will grow, as the poor can't leave, and only the rich can afford to stay. The government will spend itself into debt to attempt to keep the votes from the poor coming in, and the rich will eventually either leave, or become poor themselves. The only rich who will remain will be the politicians and the politically-connected. Such has been and will be the fate of many countries.

The change, taking effect in August 2014, follows protests and online complaints about the large number of foreigners in the affluent city-state.

It's largely the foreigners and the companies they're affiliated to that brought affluence to Singapore. It's up to the Singapore government to ensure the huge revenues they take benefit all the people. Is tightening the rules on foreigners going to do that?

No Miso: Foreigners are taking train/bus seats that could go to Singaporeans? Will people have to prove they are Singaporean before they can take a seat?

You obviously do not know what it is like taking the trains/buses in Singapore during peak hours. Sometimes in a train carriage, all around you are just pinoys & Indians from India, every single working day. I can count the locals with just a glance around the train & stations.

The ultimate outcome of mass immigration is a much bigger population that continues to grow. Singapore, perhaps the densest populated country on earth, can't afford to cram more people on that tiny island.

Degraded living standards, with families living in tiny condos, will offset any economic benefits from having so many foreigners working there. Housing there is already unaffordable.