The following letters regarding the foreign worker levy hikes were published in the Straits Times forum on 23 Feb 2011.
Levy hike sparks different reactionsStraits Times Forum, Feb 23, 2011
LETTER: Target white-collar foreigners insteadWHILE the Government's decision to lessen reliance on foreign labour to raise productivity is laudable, the wrong sector is being targeted ('Worker levy increase shocks businesses'; last Saturday).
The Government should not focus on tightening blue-collar foreign labour as such migrant workers are needed in transient work.
They work in jobs that better-educated Singaporeans shun, for example, unskilled or semi-skilled construction, cleaning or waiting at tables.
What the increase in levy should aim for is to reduce the intake of white-collar foreign workers.
These are foreigners in banking, services, manufacturing and other industries who compete with tertiary-educated Singaporeans for the same jobs.
Most of them work and live here for a few years and affect crucial infrastructure like public transport and housing.
The lax policy in granting foreigners employment passes has created tensions in competition for scarce jobs that Singaporeans are qualified to take up.
Hiring foreigners because multinational corporations (MNCs) want them should no longer be justified.
We have relied too long on the rationale that because MNCs create jobs, let them hire whoever they wish as long as Singapore gains corporate tax revenue and is able to leverage on MNCs outsourcing advantages to local small and medium-sized enterprises.
Singaporeans need the jobs that the MNCs create. The current situation where employers need not justify their need for foreigners is not sustainable.
The Government should require MNCs to adhere to a Singaporean-first policy in hiring and allow MNCs to resort to foreigners only if Singaporeans do not qualify.
The Government should also introduce an effective levy and a quota for such professional foreign employees.
These foreign professionals, and permanent residents, should also be placed in a higher tax bracket.
Cheong Tuck Kuan~
LETTER: Apply a nuanced spike to spur productivityI WAS extremely impressed by the diligence and attitude of the Bangladeshi workers who recently installed the fibre-optic cable for OpenNet at my home. It was raining and they worked through the inclement weather, completing their job after nightfall.
My immediate thought was that no Singaporean would opt for such jobs with modest salaries and tough working conditions.
So will raising the foreign worker levy for this category of workers pose a problem to our contractors ('Worker levy increase shocks businesses'; last Saturday)? Certainly.
We can go on talking about training, increased productivity and automation of processes, but are they relevant for cases like this?
Unless we can attract Singaporeans to take on such jobs, it would be pointless to gripe or protest about the presence of foreign labour.
Yes, it is noble, logical and necessary to ensure that Singapore be less reliant on foreign labour. It is sensible to upgrade skills and increase productivity.
But these cannot be applied across all sectors. Hence, a need for different strokes for different folks.
Otherwise, we will end up with a labour shortage in some sectors, and higher inflation as a consequence of cost escalation.
Lawrence Loh~
LETTER: Businesses will raise prices, eroding gains from goodiesWE ARE concerned about the impending increase in foreign worker levies, particularly in the service industry ('Worker levy increase shocks businesses'; last Saturday).
Whatever goodies the 2011 Budget is offering, such as Growth Dividends, may be wiped out by the increase in levies as businesses must raise their prices further.
While the young and mobile may be able to negotiate for higher pay rises or switch jobs, senior citizens, particularly retirees, have no such bargaining power and can only suffer in silence.
Singaporeans, businesses and households alike can help to reduce the reliance on labour by embracing new technologies.
Examples include the recent move by town councils to replace fluorescent light tubes with longer-lasting, maintenance-efficient LED tubes in HDB estates, which our association has launched as a project in condominiums and complexes.
Francis Zhan
Chief Executive
Association of Management Corporations in Singapore~
LETTER: Boycott pass-the-buck businessesI REFER to last Saturday's report ("Changes for firms"), which quoted Mr Ivan Lee, founder of restaurant chain Thai Express, as saying that the rise in foreign worker levy would be passed on to consumers most of the time, which is why prices of food and services continue to go up.
His remark seems to imply that the Government can introduce any manner of levies and all businessmen need to do is pass on the cost to customers. Any rise in the prices of food and services can, therefore, be attributed to the Government.
His comment reveals an unacceptable attitude by businesses towards customers and suggests an indifference to the spirit and objective of the foreign worker levy.
From a customer's viewpoint, such a remark, especially coming from the boss himself, is wrong. I, for one, shall not be patronising his restaurants.
Gan Teck Lee~
LETTER: Peg levy to availability of local employeesTHE main intention of the increase in foreign worker levies is to retain and safeguard jobs for Singaporeans ("Worker levy increase shocks businesses"; last Saturday).
Singaporeans often shun jobs in sectors like food and beverage, cleaning and construction. As our country prospers, it is inevitable that most Singaporeans avoid less glamorous jobs due to social stigma. Hence, the higher foreign worker levies in these sectors may not result in a significant increase in local employment. Instead, they may result in higher costs, as some jobs are labour-intensive, leading to further inflation.
I urge the authorities consider increasing foreign worker levies by industries, based on the availability of local employees in those sectors.
Tan Saw Bin (Ms)