Trade-agreements-the-main-reason-for-the-influx-of-foreign-workers
Written by: Shafie
Why a better economy in Singapore may mean more unemployment for Singaporeans? It is possibly enshrined in our Trade Agreements.
People have always wondered why is it seems easier for foreigners to get work visas or permits nowadays. The possible reason could be the trade agreements our leaders so eagerly signed on, to increase Singapore’s Growth Domestic Product (which their bonuses and salary increments are tied to) without a thought for the negative social consequences.
India-Singapore Comprehensive Economic Cooperation Agreement
In reference to India-Singapore Comprehensive Economic Cooperation Agreement (CECA) 29 June 2005: http://www.fta.gov.sg/fta_ceca.asp?hl=6
“Professional bodies in the accounting and auditing, architecture, medical (doctors), dental and nursing services in both countries will negotiate agreements, within a year of the signing of CECA, recognising each other’s education and professional qualification. This means that upon the completion of these mutual recognition agreements, India and Singapore professionals from these five professions could be able to practice in Singapore and India respectively.”
“Professional employed in 127 specific occupations will be allowed entry and stay for up to 1 year or the durations of contract, whichever is less.”
“Intra-corporate transferees (i.e. managers, executives and specialists within organisations) will be permitted to stay and work in India and Singapore for an initial period of up to 2 years or the period of the contract, whichever is less. The period of stay may be extended for period of up to 3 years at a time for a total term not exceeding 8 years.”
“Singapore companies will have certainty when they choose to deploy Singapore staff to help manage their Indian operations. Skilled and qualified professionals and service suppliers from Singapore would also gain easier access to the vast Indian market. Similarly, this would also apply to Indian companies when they deploy Indian staff to manage their operations in Singapore”
The trade agreement is supposed to be beneficial for both countries whereby, professionals from India and Singapore can work in each other country.
There is also freer movement of goods and services with lesser red tape. And if you noticed, the agreement does not impose restrictions on the number of professionals a company can employ from either country.
What is most disconcerting is that India tends to import our products, services and investments (mostly from the banking industry and for our Foreign Sovereign Funds (SWF)) and NOT our labour, while we import their labour but NOT their products and services> Have anyone seen a flood of made-in-India products in our major department stores?
This forms a skewed economic picture, whereby, our GDP will grow because of increased trade, but at the same time, Singaporean professionals will be displaced by professionals from India.
In other words, better economy in Singapore = more unemployment for Singaporeans.
Guess who signed the agreement that seems to disregard our well-being? Hint, he is the son of an old man who claims he can rise from the dead.
And it may not be over yet based on the the following article reported on 18th April 2010: http://economictimes.indiatimes.com/articleshow/5823303.cms
“India will seek greater access for its professionals in Singapore in areas such as IT, health, education and finance in the upcoming review of the bilateral agreement between the two countries. The second review of the comprehensive economic cooperation agreement or CECA that was rolled out in 2005 will begin early next month.
“Although we managed to get access for some of our professionals in Singapore as part of the CECA, we will try to get more in the review,” a commerce ministry official said.
Commerce department is holding consultations with the industry and other ministries to finalise how much more it could offer Singapore in exchange for greater access in services.”
Currently, we already have many PMETs (Professionals, Managers, Engineers and Technicians) losing their jobs to foreign workers because companies rather employ based on the cost factor than acquiring qualified skilled and productive workers. If the report from the above article is true, we may see more of our local PMETs losing their jobs in the IT, health, education and finance industries in the near future.
Indian leaders should not be blamed here. For all its worth, they signed the agreement because it benefits their workforce greatly since the number of quality job opportunities in India is low. Leaders with great foresight can see a good deal which is sorely lacking in our own leaders.
http://www.fta.gov.sg/fta_csfta.asp?hl=27
“The market access obligation means that a country cannot impose additional market access restrictions for these sectors, both quantitative and qualitative. For instance, restrictions cannot be imposed on: i) the number of service suppliers, service operations or persons employed in a particular service sector; ii) the value of services; or iii) the legal structure used.”
Trade Agreement With China
Due to the currency exchange, the majority of Singaporeans will not head to China just to work in their service industry unless they are willing to uproot and live in China with expatriate terms.
However, the people of China will definitely want to come to Singapore to work in our service industry to accumulate enough wealth to live comfortably in China.
Moreover, they don’t even have to be excessively qualified to work in the service industry in Singapore. Based on the agreement, restrictions cannot be imposed on the number of foreigners a company can employ even if they are not qualified.
Close to 70% of the world’s products are made or contracted to be made in China. So basically, we are already buying and importing made-in-China goods long before the signing of this agreement.
Singapore does not have anything that China would need in terms of goods and services. But China (as in India), do have low quality job opportunities. So, once again we have traded our job market in exchange for a country to open up their markets for us – mostly for the banking industry and investments for our SWF.
As our local banks and SWF grow, so does our GDP. However, Singaporeans, will be displaced by cheaper foreign workers from China working in the service industries such as Food & Beverages, Retail and Hotel/Tourism.
In other words, better economy in Singapore = more unemployment for Singaporeans.
Foreign workers are also given free training to improve their communication and skill sets, while Singaporeans will have to pay (with subsidies depending on the courses) for the same training.
Why do our country insists on acquiring so many foreign workers knowing plain well that they will displace our own local workers?
And why could a company employ so many foreign workers so easily? Hint, “restrictions cannot be imposed on persons employed in a particular service sector”
http://www.transitioning.org/
trade agreements like WTO or NAFTA, whatever are only symptoms...........not the cause.
no govt in their right mind will want to export jobs to other cheaper countries ! govt will collect less taxes and end up with more debts !
but yet this is happening ! and only big corporations are benefitting from all these kind of nonsense so why is this happening ?
trade agreements and mass immigration of foreigners are agenda of the people that truly control the govt.
Benjamin Disraeli ( a jewish former British PM ) said :
'' if the people think that their government is running the country, they're dreaming. ''