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Coffeeshop Chit Chat - Tartman: We'll keep to 1/3 limit on FTs</TD><TD id=msgunetc noWrap align=right> </TD></TR></TBODY></TABLE><TABLE class=msgtable cellSpacing=0 cellPadding=0 width="96%"><TBODY><TR><TD class=msg vAlign=top><TABLE border=0 cellSpacing=0 cellPadding=0 width="100%"><TBODY><TR class=msghead><TD class=msgbfr1 width="1%"> </TD><TD><TABLE border=0 cellSpacing=0 cellPadding=0><TBODY><TR class=msghead vAlign=top><TD class=msgF width="1%" noWrap align=right>From: </TD><TD class=msgFname width="68%" noWrap>kojakbt_89 <NOBR></NOBR> </TD><TD class=msgDate width="30%" noWrap align=right>9:06 am </TD></TR><TR class=msghead><TD class=msgT height=20 width="1%" noWrap align=right>To: </TD><TD class=msgTname width="68%" noWrap>ALL <NOBR></NOBR></TD><TD class=msgNum noWrap align=right> (1 of 3) </TD></TR></TBODY></TABLE></TD></TR><TR><TD class=msgleft rowSpan=4 width="1%"> </TD><TD class=wintiny noWrap align=right>34144.1 </TD></TR><TR><TD height=8></TD></TR><TR><TD class=msgtxt>Home > Insight > Story
Jun 5, 2010
'Not just a global city, but also a country'
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Interview with Finance Minister and ESC chairman Tharman Shanmugaratnam
To what extent was the discontent over foreigners an issue during the Economic Strategies Committee deliberations? Much less than has been made out to be, frankly. The start and end points did not have to do with public discomfort about foreigners per se. This was a fundamental economic strategy issue. We knew that if we continued with the strategy of very rapid growth of the workforce, there would be a trade-off in low productivity growth over the long term.
If the boom years return, would the floodgates be opened for foreign workers again? No, I don't think so. This year, we are still recovering from the crisis, so we hope that it would be a good year.
Going beyond that, we've got to find ways through a whole range of policy instruments - fiscal policy, monetary policy, labour and land policies - to try to achieve a sustainable rate of growth, although year by year, it will always be higher or lower than what you think is a steady, sustainable rate. We don't have a policy of going for high growth for its own sake.
How did you decide on that one-third limit for foreigners? Because we were close to it already, that was a starting point. We had to assess whether we should allow it to keep increasing or whether to cut back. Cutting back would have been very painful for the economy and ultimately for the local workforce. But we didn't think it was wise to allow it to keep increasing, at least not on a secular basis over the long term.
One-third is somewhat lower than what some other global cities have been able to accommodate. If you look at London, New York, it's probably over 40 per cent. But they are cities in countries. I don't think we can afford to be like them, to have over 40 per cent of our workforce foreign without losing something that defines you as a nation, a basic tenor of society that's still Singaporean. And you assess that one-third is about right in the long term. We felt we are more comfortable with that than thinking we are nothing but a global city. We are also a country.
RACHEL CHANG
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Jun 5, 2010
'Not just a global city, but also a country'
<!-- by line --><!-- end by line -->
<!-- end left side bar --><!-- story content : start -->
Interview with Finance Minister and ESC chairman Tharman Shanmugaratnam
To what extent was the discontent over foreigners an issue during the Economic Strategies Committee deliberations? Much less than has been made out to be, frankly. The start and end points did not have to do with public discomfort about foreigners per se. This was a fundamental economic strategy issue. We knew that if we continued with the strategy of very rapid growth of the workforce, there would be a trade-off in low productivity growth over the long term.
If the boom years return, would the floodgates be opened for foreign workers again? No, I don't think so. This year, we are still recovering from the crisis, so we hope that it would be a good year.
Going beyond that, we've got to find ways through a whole range of policy instruments - fiscal policy, monetary policy, labour and land policies - to try to achieve a sustainable rate of growth, although year by year, it will always be higher or lower than what you think is a steady, sustainable rate. We don't have a policy of going for high growth for its own sake.
How did you decide on that one-third limit for foreigners? Because we were close to it already, that was a starting point. We had to assess whether we should allow it to keep increasing or whether to cut back. Cutting back would have been very painful for the economy and ultimately for the local workforce. But we didn't think it was wise to allow it to keep increasing, at least not on a secular basis over the long term.
One-third is somewhat lower than what some other global cities have been able to accommodate. If you look at London, New York, it's probably over 40 per cent. But they are cities in countries. I don't think we can afford to be like them, to have over 40 per cent of our workforce foreign without losing something that defines you as a nation, a basic tenor of society that's still Singaporean. And you assess that one-third is about right in the long term. We felt we are more comfortable with that than thinking we are nothing but a global city. We are also a country.
RACHEL CHANG
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