SINGAPORE - Singapore must never let anti-foreigner sentiments take root or give the impression that it is becoming more inward-looking, cautioned Finance Minister Lawrence Wong.

Staying open and connected to the world is a critical aspect of the country's competitiveness, he stressed in his round-up speech on this year's Budget. "This is not just an option. This is essential, even existential, for us."

If global investors conclude that Singapore is closing itself and becoming less welcoming of foreigners, the Republic "will become less attractive to them, and it will be ordinary Singaporeans who suffer the most", said Mr Wong in Parliament on Wednesday (March 2).

He was replying to points raised by Nominated MP Cheng Hsing Yao and labour MPs Chee Hong Tat and Patrick Tay on the need to remain connected.

The minister said the latest tweaks to foreign worker policies announced in this year's Budget are careful, calibrated adjustments made over the years.

"This is not a sudden change in policy. We made our intentions very clear in the Economic Strategies Committee report in 2010," he said.

"We recognise that tightening too quickly will hurt our small and medium-sized enterprises, but moving too slowly will lessen the incentive for firms to upgrade. So it is really about maintaining that careful balance."

The latest changes will ensure that foreign workers coming in are of the right calibre, for areas where they are needed and to complement the local workforce.

"We are not closing ourselves to the inflow of foreign workers and professionals," Mr Wong emphasised.

"They are and will remain integral to our economy and our competitiveness. They are a valuable complement to our Singaporean core at all levels of the workforce."

Singapore will continue to welcome committed foreigners who have the capabilities and share the same values, "to stay on and help us build the next phase of the Singapore story", he added.This would give the country the best chance of success amid intense global competition, he noted.

Addressing concerns raised by Nominated MP Janet Ang and Mr Edward Chia (Holland-Bukit Timah GRC) on manpower availability, Mr Wong highlighted that the current shortage of work permit holders is partly due to the Covid-19 border restrictions.
 
As Singapore progressively opens its borders, priority will be given to hiring workers that businesses urgently need, especially those in the construction, marine shipyard and process sectors.
“We should be able to clear the shortages within the next few months,” he said, urging firms to tap various schemes to redesign jobs and raise productivity.
 
In his speech, Mr Wong also said keeping the cost of employing foreigners low would mean depressing the wages of local workers over time. 

“Our focus, therefore, is not to hold down labour costs indefinitely but to support efforts by our firms to be more productive and innovative. So that they can be competitive and successful even as labour costs gradually increase. That’s why we are redoubling our efforts to invest in new capabilities,”  he added.

Singapore, for instance, has been investing heavily in research and development and technology to boost the competitiveness of its economy. 

Mr Wong highlighted that the country has been doing better in its knowledge and technology outcomes over the years.

“These investments have a long gestation period,” he noted, adding that the links between research institutes and industries can be strengthened so firms can access frontier technology and quality research.

“They take time to bear fruit, but we are seeing positive results. I am confident we will continue to see more positive results in the years ahead.”

Watch Finance Minister Lawrence Wong's full speech in Parliament: