Absorbing Temporary Foreign Workers: The Experience of Singapore

Abstract

Singapore has emerged as one of the major importers of temporary workers in East Asia, particularly from Malaysia, Philippines and Thailand, and has developed policies to maximize the benefits of foreign labor while minimizing its social and economic costs. Government policies restrict unskilled foreign workers to approved sectors and prohibit settlement in Singapore. Illegal workers are subject to imprisonment and the controversial punishment of mandatory caning. On the other hand, policies toward highly qualified and professional workers are exceptionally liberal, with new rules designed to attract skilled people from Hong Kong. As regional labor flows grow, Singapore's dependence on skilled and unskilled foreign labor will go beyond the primacy of a domestic focus and lead to an increased emphasis on managing labor problems through skillful diplomacy and migrant protection.