Work-permit workers account for the lion's share of the non-resident population, with foreign students and those on social-visit passes accounting for the rest. This year's non-resident population surge is unusually high, reflecting an enormous influx of semi-skilled and unskilled labour to support our intense economic activities.

The number of work-permit holders is closely linked to economic necessity. Traditionally, the Government has kept rather tight control over its size. No figure on work-permit holders was given in the statistical release. Looking at the magnitude of the increase in the non-resident population, one would surmise that this year's increase in foreign workers is very huge. In absolute number, this year's non-resident population rose by 130,100 - five times the average annual increase of 22,500 from 1997-2006.

As an illustration, should our economy expand by 5 per cent and our labour productivity improve by 2 per cent, we need roughly a 3 per cent increase in labour force to support the expansion.

The faster our economy grows, the faster our workforce would have to expand, as past experience shows that it is very difficult, if not impossible, for our productivity to grow consecutively by more than 2 per cent.

Let us look at the issue from another angle. In 1980, the non-resident population accounted for only 5.5 per cent of total population; and in 1990, 10.2 per cent. This year its percentage share has jumped to 21.5 per cent. With anticipated strong economic growth in the next few years, it may reach 25 per cent by the end of the current boom.

In this context, would the proposed legislation pertaining to employing older workers be speeded up?

Also, would new parameters be introduced in the control of work permits in the future in order to facilitate the execution of the legislation?

The legislation would most probably lead to heightened competition in some segments of the labour market between cheap, younger foreign workers and our older workers.

How to legislate and execute the regulations without causing too much interference and disturbance to market forces and business sagacity would be a very great challenge indeed.

Ng Ya Ken