In a parliamentary session on April 2, 2024, Manpower Minister Tan See Leng addressed concerns about the job market, stating that Singapore must not view residents and foreigners as engaging in a “zero-sum game” for employment opportunities. He emphasized that having access to complementary foreign talent will create better job prospects and higher wages for local workers.

Tan’s remarks came in response to a question from opposition MP Gerald Giam, who inquired about the government’s plan to ensure that most new jobs in 2024 would be allocated to citizens and residents, especially after foreign workers comprised a significant portion of employment growth in 2023. The minister refuted Giam’s assertion, describing it as a “fundamentally misguided” perspective that a rise in foreign employment equates to fewer jobs for Singaporeans.

He explained that thriving businesses, bolstered by access to foreign talent, are better positioned to create jobs and enhance overall wage outcomes through improved productivity. The government’s strategy aims to balance the needs of businesses with the opportunities for local workers to grow and progress in their careers.

Tan provided data to illustrate this point, highlighting that between 2013 and 2023, the number of resident professionals, managers, executives, and technicians (PMETs) rose by 380,000, compared to a modest increase of 50,000 for Employment Pass (EP) and S Pass holders. In growth sectors like finance and information technology, resident PMETs grew by 190,000, while the number of EP and S Pass holders only increased by 20,000.

Furthermore, he noted that resident incomes have improved in real terms by 21.6% over the past decade. The Ministry of Manpower also reported a low resident employment rate of 66.2%, ranking Singapore among the top countries in the Organisation for Economic Co-operation and Development for employment rates, with low unemployment figures at 2.7% and long-term unemployment at 0.7%.

With the resident workforce growth slowing, Tan reiterated the importance of maintaining an open stance toward foreign labor to meet the demands of a growing economy. He pointed out that a significant portion of the increase in non-resident employment—approximately 77.6%—was attributed to sectors like construction, which typically attract work permit holders rather than Singaporean workers. Meanwhile, higher-skilled EP and S Pass holders accounted for only 22.4% of the growth.

In a follow-up question, Giam expressed concern that the government’s job creation efforts, particularly through foreign direct investment (FDI), might disproportionately benefit multinational companies and foreign workers. Tan countered that questioning the value of government investment in economic growth is short-sighted. He asserted that Singapore cannot indefinitely expand its workforce to sustain economic growth; instead, it must focus on enhancing productivity and value creation.

Tan concluded by emphasizing the necessity of enabling businesses to access the workforce they require, which includes foreign talent, particularly in a tight labor market where full employment is approaching.