The recent case of the high numbers of Indian nationals in high-level positions in the Deutsche Bank in Singapore has cast the spotlight on the Comprehensive Economic Partnership Agreement (CECA) that Singapore signed with India again.
Under the CECA, Singapore is mandated to allow a free flow of Indian nationals into Singapore without any border controls.
In fact, it was written in the CECA that Singapore is not allowed to enact policies or laws that "require labour market testing, economic needs testing or other procedures of similar effects as a condition for temporary entry".
In short, the Singapore government cannot enact laws that protect Singaporean workers or foreign workers.
But not only that, the spouses of Indian nationals are also allowed to come here freely to work.
Indian nationals who come to Singapore to work are "allowed to bring in their spouses or dependents". Also the Singapore government is required to "grant the accompanying spouses or dependents ... the right to work as managers, executives or specialists".
"Such spouses or dependents can apply independently in their own capacity and shall not be barred by the (Singapore government) granting them the right to work from taking up employment," the CECA also said.
For foreign spouses who come into Singapore, then look for a job, they would most probably be classified under "other work passes" under the foreign workforce numbers.
And when you look at their growth rate, in 2012 and 2013, this category of workers grew by 22 percent in each year. But by the middle of last year, there was already an increase of 30 percent.
In 2013, the Singapore government introduced the Fair Employment Consideration framework to supposedly ask for employers to consider Singaporeans for employment fairly.
Rumours were that the Indian government wanted to bring the issue up to the World Trade Organization’s (WTO) because India was worried that the framework would prevent Indian nationals from coming into Singapore to work freely.
Apparently, India felt that Singapore was violating the CECA and said that it was worried that Indian nationals working in Singapore would lose their jobs, especially for those in the middle level.
In May 2010, the CECA was up for a second review but it has been held up because of two main issues.
The Indian government wanted to have more Indian banks come into Singapore to operate. It also wanted Singapore to continue to allow a free flow of Indian professionals to work in Singapore.
“Yes, it (the second review of CECA) has taken a bit longer. We are in no hurry. These sort of negotiations take time. The Indian government is yet to come to terms with our laws. If CECA review takes over 10 years then also it is no big deal. Life goes on,” a senior Singaporean government official was supposedly to have told the Indian Business Standard.
However, clearly, even with the hold up, India continues to have preferential treatment by the Singapore government.
There continues to be a significant number of Indian nationals working as vice-presidents and directors in the Deutsche Bank in Singapore, for example.
Not only that, the recent case of a company, Prime Gold International, which had retrenched 13 of its Singaporean workers so that it could hire foreign workers was allowed to continue to renew the work passes of these foreign workers who had replaced the Singaporeans.
The Singaporean workers had no recourse.
In fact, just last month, it was also announced that Singapore would now acknowledge the degrees from four nursing institutions in India for Indian nurses to be able to come to Singapore to work.
This will open avenues for our nurses to go and practise in Singapore at competitive packages," an Indian official had said.
As such, even with the Fair Consideration Framework and the so-called tightening of the labour market in Singapore, Singaporeans continue to be outbid by foreign workers.
In 2012, Mr Tommy Koh had also said, "The truth is that we pay these (Singaporean) workers such low wages not primarily because their productivity is inherently low, but largely because they are competing against an unlimited supply of cheap foreign workers."
Was all the talk about a tightening of foreign labour all talk and just a sideshow to placate Singaporeans but where no real changes actually took place?
In fact, India and Singapore's bilateral trade is still expanding tremendously.
Trade between India grew by $19.4 billion in 2013-14, which is a lot higher than the $4.2 billion in 2003-04.
What's more, the trade surplus is more favourable towards Singapore than India. Foreign direct investment from India to Singapore actually grew from $1.3 billion in 2005 to $20 billion in 2012, or a whooping 15 times.
Quite clearly, amidst all the talk of the tightening of labour, the Singapore government continues to benefit from having fewer restrictions.
This thus questions the sincerity of the government's claim of wanting to reduce the number of foreign workers in Singapore.
Where Singapore banks continue to employ foreign workers in huge numbers, even in high positions and where Singaporean workers can be so easily retrenched and made redundant, it does not look like the Singapore government is making any earnest improvement towards improving the livelihoods and employability of Singaporeans.
Add to it that the wages of Singaporeans have continued to be depressed precisely because of the government's pandering to foreign governments and because of a lack of wage protection policy for Singaporeans, such as minimum wage, it is clear that Singaporeans are being taken advantage of by the Singapore government and that there is no end in sight.
Perhaps as some Singaporeans are rightfully asking, is the PAP government still in the interest of Singaporeans to vote for, if it would not implement adequate policies to protect Singaporeans, while excusing its own actions in the name of economic growth.
http://therealsingapore.com/content/spore-india-trade-agreement-continues-put-jobs-sporeans-risk
Under the CECA, Singapore is mandated to allow a free flow of Indian nationals into Singapore without any border controls.
In fact, it was written in the CECA that Singapore is not allowed to enact policies or laws that "require labour market testing, economic needs testing or other procedures of similar effects as a condition for temporary entry".
In short, the Singapore government cannot enact laws that protect Singaporean workers or foreign workers.
But not only that, the spouses of Indian nationals are also allowed to come here freely to work.
Indian nationals who come to Singapore to work are "allowed to bring in their spouses or dependents". Also the Singapore government is required to "grant the accompanying spouses or dependents ... the right to work as managers, executives or specialists".
"Such spouses or dependents can apply independently in their own capacity and shall not be barred by the (Singapore government) granting them the right to work from taking up employment," the CECA also said.
For foreign spouses who come into Singapore, then look for a job, they would most probably be classified under "other work passes" under the foreign workforce numbers.
And when you look at their growth rate, in 2012 and 2013, this category of workers grew by 22 percent in each year. But by the middle of last year, there was already an increase of 30 percent.
In 2013, the Singapore government introduced the Fair Employment Consideration framework to supposedly ask for employers to consider Singaporeans for employment fairly.
Rumours were that the Indian government wanted to bring the issue up to the World Trade Organization’s (WTO) because India was worried that the framework would prevent Indian nationals from coming into Singapore to work freely.
Apparently, India felt that Singapore was violating the CECA and said that it was worried that Indian nationals working in Singapore would lose their jobs, especially for those in the middle level.
In May 2010, the CECA was up for a second review but it has been held up because of two main issues.
The Indian government wanted to have more Indian banks come into Singapore to operate. It also wanted Singapore to continue to allow a free flow of Indian professionals to work in Singapore.
“Yes, it (the second review of CECA) has taken a bit longer. We are in no hurry. These sort of negotiations take time. The Indian government is yet to come to terms with our laws. If CECA review takes over 10 years then also it is no big deal. Life goes on,” a senior Singaporean government official was supposedly to have told the Indian Business Standard.
However, clearly, even with the hold up, India continues to have preferential treatment by the Singapore government.
There continues to be a significant number of Indian nationals working as vice-presidents and directors in the Deutsche Bank in Singapore, for example.
Not only that, the recent case of a company, Prime Gold International, which had retrenched 13 of its Singaporean workers so that it could hire foreign workers was allowed to continue to renew the work passes of these foreign workers who had replaced the Singaporeans.
The Singaporean workers had no recourse.
In fact, just last month, it was also announced that Singapore would now acknowledge the degrees from four nursing institutions in India for Indian nurses to be able to come to Singapore to work.
This will open avenues for our nurses to go and practise in Singapore at competitive packages," an Indian official had said.
As such, even with the Fair Consideration Framework and the so-called tightening of the labour market in Singapore, Singaporeans continue to be outbid by foreign workers.
In 2012, Mr Tommy Koh had also said, "The truth is that we pay these (Singaporean) workers such low wages not primarily because their productivity is inherently low, but largely because they are competing against an unlimited supply of cheap foreign workers."
Was all the talk about a tightening of foreign labour all talk and just a sideshow to placate Singaporeans but where no real changes actually took place?
In fact, India and Singapore's bilateral trade is still expanding tremendously.
Trade between India grew by $19.4 billion in 2013-14, which is a lot higher than the $4.2 billion in 2003-04.
What's more, the trade surplus is more favourable towards Singapore than India. Foreign direct investment from India to Singapore actually grew from $1.3 billion in 2005 to $20 billion in 2012, or a whooping 15 times.
Quite clearly, amidst all the talk of the tightening of labour, the Singapore government continues to benefit from having fewer restrictions.
This thus questions the sincerity of the government's claim of wanting to reduce the number of foreign workers in Singapore.
Where Singapore banks continue to employ foreign workers in huge numbers, even in high positions and where Singaporean workers can be so easily retrenched and made redundant, it does not look like the Singapore government is making any earnest improvement towards improving the livelihoods and employability of Singaporeans.
Add to it that the wages of Singaporeans have continued to be depressed precisely because of the government's pandering to foreign governments and because of a lack of wage protection policy for Singaporeans, such as minimum wage, it is clear that Singaporeans are being taken advantage of by the Singapore government and that there is no end in sight.
Perhaps as some Singaporeans are rightfully asking, is the PAP government still in the interest of Singaporeans to vote for, if it would not implement adequate policies to protect Singaporeans, while excusing its own actions in the name of economic growth.
http://therealsingapore.com/content/spore-india-trade-agreement-continues-put-jobs-sporeans-risk
