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Wednesday, 23 November 2011 21:36

Startling data from some industries - Lina Chiam

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Picture from : http://www.intellasia.net Picture from : http://www.intellasia.net

In September 2011, I asked the Deputy Prime Minister and Minister for Manpower for the breakdown of the percentage split between the number of local and foreign workers from 2009-2011 for the following industries:

(i) chemical industry

(ii) marine engineering industry

(iii) offshore engineering industry

(iv) aerospace engineering industry

(v) manufacturing industry and

(vi) the financial sector.

The rationale for asking such a question was to make sure that we are promoting the correct industry mix in Singapore. Beyond growing the GDP and wage level, I wanted to find out the cost of pursuing such growth. This is consistent with my maiden speech in Parliament where I promised Singaporeans that I would fight for sustainable growth.

DPM replied with the percentage breakdown of employment by residential status in the various industries as at end of 2009 and 2010. The details are provided in Table 1.

[The data for end 2011 is not available yet.]

My response is clear. I’m startled by the information. For the first time, I have in my hands, clear data showing that the manufacturing industry promoted by the Ministry for Trade and Industry has only 52% local content. What does this mean to you? For every dollar and every square metre of industrial land we allocate to sustain the manufacturing industry, only approximately 50% of the jobs created are local jobs.

What is more startling is the percentage of foreign content under the Marine and Chemicals industry. It implies that for every 10 jobs created, only approximately 2 go to Singaporeans and Permanent Residents (PR). The figure has remained relatively constant in 2009 and 2010. In comparison, in the Aerospace industry and the Finance industry, the local jobs created are far heavier weighted towards locals.

Does this mean we have to shift the focus of our growth to industries that have higher local content? Or does this mean we have to restructure the chemicals and marine industries? I do not have enough information at this point. However, I will press on and ask the government through my parliamentary role for more details. Questions I will ask in the near future comprise the following:

1) How the different industries have used scarce industrial land?

2) How the wage distribution has transformed over the years?

3) What was the percentage split between Singaporean, PR and Foreigner for the various industries in Singapore? I’m mindful that locals comprise Singaporeans and PRs.

In the meantime, I urge Singaporeans to give me their full support in uncovering the sustainability of our economic sectors. I hope we, both the incumbent government and the alternative voices in Parliament, can join hands to transform the industries we have in Singapore in double quick time for a more inclusive and sustainable growth.

By Lina Chiam, Non-constituency Member of Parliament

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6 comments

  • Comment Link WmuleW Friday, 25 November 2011 15:22 posted by WmuleW

    Just because manufacturing has large numbers of foreigners = must eliminate is a very naive an simplistic view of the situation. Some points

    1)Even if the % is not 50+ to 40+ percent but vice versa, it still constutite to a substantial amt of jobs available to workers.
    2)The indirect jobs created to support such industries, the finance services, supply chain, etc.
    3)The bulk of the manufacturing jobs cater to the lower educated. What will happen to this group if the industry is move out, does she want to make the situation for the poor even worse?

    Don't be so blinded by your hatred for FTs as to condemn everything related to them. Closing down 1 factory doesn't just mean that 1 factory worth of workers will lose their jobs. It also means that whatever other businesses that were supporting them will be cutting back their staff due to loss of business. The effects can be very significant. Just look at the US and how they are trying to use all ways and means to force manufacturing out of China to move back to the US.

  • Comment Link sgporc Thursday, 24 November 2011 18:54 posted by sgporc

    question is informative to a certain extent but also wasted in a way... why ask for derived values (ie. percentages) when absolute numbers will be even more informative (percentages can be easily calculated). then we can see whether there is actually any local job growth to substantiate the government stand that foreigners help grow the local economy...

  • Comment Link jay Thursday, 24 November 2011 16:01 posted by jay

    do note, many singapore companies put retired family members name into working staff so that they can employ foreigners. MOM is turning a blind eye to this matters. if they are series about abusing they would have caught easily. just go to " no sigbboard resturants at geylang" i dont even see a single singaporeans working there. the quota can be said 100:0.

  • Comment Link quzy Thursday, 24 November 2011 13:04 posted by quzy

    Just because there're many foreigners in the various industries doesn't mean "foreigners are taking away jobs from locals". It's bordering on demagogy.

    If u have a policy of developing only industries in which Singaporeans are able to work, then u can wait til the cows come home before any critical mass of workers and professionals gets built up. It never will, because in a given industry that's new to Sg, it's well established somewhere else. The few Singaporeans who r trained in that would rather work at the established places. Why come back and wait til there are enough Singaporeans to start an industry? Meanwhile do what?

    If there are industries where there are not enough Singaporeans, can we also ask ourselves why? Chemical industry - how many Singaporeans choose to study science? Got money meh? Marine Industry - oily, dangerous and dirty. In the 90s the default course was engineering. Now it's business and finance. Singaporeans only take the bandwagon.

    If the purpose of Lina's question is to hint at a policy where every single Singaporean is employed before hiring foreigners, then u'll be lowering the skills of Singapore as a nation to the lowest common denominator -i.e. we can't hire Indian chemical scientists because we still have 2% locals unemployed - but can they do chemistry research?

    Of course, the main question is - why target to grow these industries? I dun think MTI and EDB gets it right all the time, but the principle is simple - look at what the World needs, where we can squeeze in and try to fill the gap, i.e. demand driven. If we're to choose industries in which Singaporeans are good, then it'll be supply-driven. It's generally agreed upon that demand will lead to supply, but supply rarely leads to demand. We're no longer in a village scenario where people just put their wares to sell outside their door, hoping a passerby will buy. In fact, even in a village, if both you and your neighbours are selling bread, and his is way more popular than yours, you should start thinking of selling other stuff.

    The problem with the gov now is not the economic growth policies. These seem to be doing quite well. It's the distribution of the growth. All these high value added industries (including Chemical and Marine) generate alot of downstream jobs and revenue, and tax income. But unfortunately, not everyone is sharing the fruits of the growth.

    Lina, wrong question lah.

  • Comment Link Daniel Lee Thursday, 24 November 2011 12:07 posted by Daniel Lee

    One has to look into the sort of jobs (frontline, operation, supervisory, managerial). What if Singaporeans in the Marine and Chemical industry are generally in managerial and supervisory?

  • Comment Link Melody Chan Thursday, 24 November 2011 11:05 posted by Melody Chan

    Good effort there, Mrs Chiam!

    Given that the data do not differentiate between Singaporeans and PRs, who are rightfully foreigners, it is indeed a worrying issue. The government should explain why it chooses to engage in such economic activities that offer so few direct opportunities to Singaporeans. The GDP may be pushed up, but so is inflation with the hordes of foreign workers - not forgetting the stagnating wages of Singaporeans.

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