Strategies to reduce the reliance of foreign workers : a case study of Singapore’s construction industry

Abstract

Singapore has one of the most open economies in the world in terms of foreign labour inflows. Foreign workers served to overcome the labour shortage in the Singapore construction sector; however, over the years the influx of and over-dependence on foreign workers have become a serious social problem and controversial issue in the country. This study attempts to examine the benefits of and problems caused by foreign workers, and propose and discuss ways to reduce the reliance on foreign construction workers in Singapore. This study is mainly based on secondary data. It was found out using foreign workers have benefits. Foreign workers can contribute to Singapore's economic growth, provide labour that the local workers avoid, reduce the cost of labour for companies, among others. However, foreign workers caused congested infrastructures, jobs competition, and housing pressures etc. To reduce the reliance on foreign construction workers in Singapore, this study proposed policies and strategies such as the minimum wage policy, "Singaporean First policy", and reducing the Dependence Ratio Ceiling (DRC), among others. These policies and strategies recommended may help to reduce the reliance on foreign workers in the country.