Massive immigration of workers may cause productivity to stagnate: forum

[makapaaa]

[h=2]Massive immigration of workers may cause productivity to stagnate: forum[/h]

By Thomas Cho | Posted: 04 March 2013 2349 hrs

SINGAPORE: Massive immigration of unskilled and semi-skilled workers may cause productivity to stagnate. That is the view of an economist speaking at the Economic Society of Singapore forum on the Population White Paper.

Mr Yeoh Lam Keong, vice president of the Economic Society of Singapore, said having more unskilled workers will not incentivise companies to adopt automation and the use of technology.

Economists at the discussion forum debated on the the benefits and costs of increasing Singapore's population.

Most agreed that the final objective of the Population White Paper should be the well being of citizens in the long run, and by focusing on productivity growth, it helps to determine the real wage growth and the well-being of the labour force.

Looking at the local construction sector, some economists said it has remained as labour intensive as it was 20 years ago.

Mr Yeoh said: "They (government) is trying to restrict the flow of foreign labour so as to force our employers to upgrade towards less labour-intensive and more productive occupations. For example, productivity in the construction industry is only 38 per cent of the US average."

Still, some economists believe an increase in immigration may benefit local Singaporeans.

Mr Ng Yew Kwang, Winsemius Professor in economics at the Nanyang Technological University, said: "More people are coming to push up the prices of things that are owned by local Singaporeans and the government. More immigration will decrease the wages of immigrants, and hence, benefit Singaporeans as a group."

However, the professor warned that if too many unskilled workers come to Singapore, it may depress the wages of local unskilled workers. Thus, the government may need to introduce fiscal policies to narrow the widening income gap.

-CNA/ac​

 

[Kinana]

SINGAPORE: Massive immigration of unskilled and semi-skilled workers may cause productivity to stagnate. That is the view of an economist speaking at the Economic Society of Singapore forum on the Population White Paper.

Mr Yeoh Lam Keong, vice president of the Economic Society of Singapore, said having more unskilled workers will not incentivise companies to adopt automation and the use of technology.

Thats speculation on his part. Pure theory and not based on reality. The levy for unskilled workers are very high in Singapore and this will ensure that only work that requires hands feet and boots on the ground be used. As any economy expands, there will be a proportionate increase in the use of such labour.
Contrary to what Yeoh claimed, this can actually lower overall cost to consumers and increase productivity for locals.

Most agreed that the final objective of the Population White Paper should be the well being of citizens in the long run, and by focusing on productivity growth, it helps to determine the real wage growth and the well-being of the labour force.

That statement hits the nail right on the head.

Looking at the local construction sector, some economists said it has remained as labour intensive as it was 20 years ago.

Based on what measurements did these people use?

Mr Yeoh said: "They (government) is trying to restrict the flow of foreign labour so as to force our employers to upgrade towards less labour-intensive and more productive occupations. For example, productivity in the construction industry is only 38 per cent of the US average."

A fallacy based on dubious comparisons
It is really difficult to make an apple to apple comparison between the two markets. The construction needs and structure between the tow countries are totally different. Besides, US rellies a lot on illegal labour for construction which are accountable in studies. There are an approximate 12 million illegal aliens in the US today.

Still, some economists believe an increase in immigration may benefit local Singaporeans.

Mr Ng Yew Kwang, Winsemius Professor in economics at the Nanyang Technological University, said: "More people are coming to push up the prices of things that are owned by local Singaporeans and the government. More immigration will decrease the wages of immigrants, and hence, benefit Singaporeans as a group."

Exactly. Immigranst work and pay rentals that benefit hundreds of thousands of Singaporeans.
They also drive down the prices of good thru a more competitive retail environment.

However, the professor warned that if too many unskilled workers come to Singapore, it may depress the wages of local unskilled workers. Thus, the government may need to introduce fiscal policies to narrow the widening income gap.

Thats why there is workfare.
Locals need to follow govt advice and upgrade and not eb stuck in these jobs. The opportunities are aplenty.

 

[winnipegjets]

Mr Ng Yew Kwang, Winsemius Professor in economics at the Nanyang Technological University, said: " ...More immigration will decrease the wages of immigrants, and hence, benefit Singaporeans as a group."

What lah ...how did he even become a professor? With his reasoning, he qualifies be a kindergarten teacher ...yes, kids will believe him.

 

[winnipegjets]

Thats speculation on his part. Pure theory and not based on reality. The levy for unskilled workers are very high in Singapore and this will ensure that only work that requires hands feet and boots on the ground be used. As any economy expands, there will be a proportionate increase in the use of such labour. Contrary to what Yeoh claimed, this can actually lower overall cost to consumers and increase productivity for locals.

You don't see reality! The levy is not high enough to stop employers from hiring foreigners. Where is the lower cost? Inflation is averagingn 5 percent! Increase productivity? Where is that? And you charged that this guy doesn't see reality.


A fallacy based on dubious comparisons

Exactly. Immigranst work and pay rentals that benefit hundreds of thousands of Singaporeans.
They also drive down the prices of good thru a more competitive retail environment.

At least 50 percent of the income going to foreigners end up as a drain in gross consumption because of remittance!

 

[Rogue Trader]

Who cares about productivity when ICA, worker agencies and construction companies can eat until fat fat?