What if we removed all the foreigners?
๐๐ฎ๐ญ ๐ฐ๐ข๐ญ๐ก ๐ญ๐ก๐ ๐๐จ๐ซ๐๐ข๐ ๐ง๐๐ซ๐ฌ!
Every now and then, you see the โlocals vs foreignerโ complaints. Foreigners are taking our jobs. Foreigners are causing crowded trains. Foreigners are driving up property prices.
It is as if reducing the number of foreigners, and everything will magically become better.
Sure, whilst reducing the numbers is an emotionally satisfying argument, it is also an economically shallow one.
๐๐๐ญ'๐ฌ ๐ข๐ฆ๐๐ ๐ข๐ง๐ ๐๐๐ซ๐ฅ๐ข๐๐ฆ๐๐ง๐ญ ๐ ๐๐ฏ๐ ๐ข๐ง ๐ญ๐จ ๐ฉ๐จ๐ฉ๐ฎ๐ฅ๐๐ซ ๐ฉ๐ซ๐๐ฌ๐ฌ๐ฎ๐ซ๐ ๐ญ๐จ๐ฆ๐จ๐ซ๐ซ๐จ๐ฐ ๐๐ง๐ ๐๐ง๐ง๐จ๐ฎ๐ง๐๐๐ ๐ญ๐ก๐๐ญ ๐ญ๐ก๐ ๐๐จ๐ซ๐๐ข๐ ๐ง ๐ฐ๐จ๐ซ๐ค๐๐จ๐ซ๐๐ ๐ฐ๐จ๐ฎ๐ฅ๐ ๐๐ ๐๐ฎ๐ญ ๐๐ฒ ๐๐%.
First, companies would have no choice but to hire locally for many of those roles. With fewer workers available, wages would naturally rise as businesses compete for talent.
That sounds wonderful right? Well, who pays those higher wage bills. You do.
The cost of labour doesn't disappear. It gets passed on through higher prices for your food, transport, healthcare, childcare, renovations, logistics, retail, and practically every service you use.
Second, manpower is the single largest expense for many businesses. Increase labour costs dramatically, and you make entrepreneurship far riskier.
Want to start a new cafรฉ? Where is your source of manpower?
Starting a small business in cleaning, manufacturing and landscaping? Whoโs going to do this work?
Even if youโre talking about the much criticized financial services industry, there just arenโt enough Singaporeans to support all these banks and financial organizations.
Youโll discover that businesses simply won't be created at all. Ironically, policies meant to "protect jobs" can end up preventing new jobs from ever existing.
Third, many multinational companies don't have to stay here. If Singapore becomes too difficult or too expensive to staffโฆ especially for specialist, engineering, research or regional management roles, they simply relocate.
When headquarters leave, they don't just take away a handful of expatriate positions.
They take away HR staff. Finance teams. Receptionists. IT support. Marketing. Facilities management.
Local suppliers will suddenly find no business to do. Entire ecosystems disappear together.
Fourth, Singapore's reputation matters. We are a country that depends on international trade, international investment and international talent. If we become known for being openly hostile towards foreigners, should we be surprised if other countries begin treating Singaporeans the same way?
Finally, there's the simple issue of consumption.
Suppose there are one million foreigners living here and imagine each spends just ten dollars a day.
That's ten million dollars circulating through Singapore's economy every single day.
All of Singapore economy depends on this spending: coffee shops, hawker centers, hair salons, gyms, taxi/PHV drivers, food delivery, landlordsโฆ take all that away and you will feel the pain.
It is unfortunate that Singaporeโs fate, is that it is a small land scarce country. Small body, but big capabilities - we are just outpacing our own economic ability.
The complaints and criticisms are real and should not be ignored.
Infrastructure must keep pace with population, yes but at the same time, this country can only contain so many inhabitants.
๐
๐ข๐ฏ๐๐๐ญ๐๐ซ๐ฌ๐๐ง๐๐๐๐จ๐จ๐ง ๐ข๐ฌ ๐จ๐ ๐ญ๐ก๐ ๐ฉ๐จ๐ฌ๐ข๐ญ๐ข๐จ๐ง ๐ญ๐ก๐๐ญ ๐ฐ๐ ๐ง๐๐๐ ๐๐๐๐๐ง๐ญ๐ซ๐๐ฅ๐ข๐ณ๐๐ ๐ ๐ซ๐จ๐ฐ๐ญ๐ก, ๐ฏ๐ข๐ ๐ฌ๐๐ญ๐๐ฅ๐ฅ๐ข๐ญ๐ ๐๐ข๐ญ๐ข๐๐ฌ. If growth cannot be achieved here, we must pursue it via a new model of governance. But that is a separate topic for another post.
The debate should never be "locals versus foreigners."
It should be: How do we build an economy where Singaporeans thrive while remaining open enough to attract the people and businesses that keep that economy growing?
Satellite cities may just be the answer.
#singapore