I believe that it has to a mixture, because of 2 reasons:
1. In some sports, bringing in FT really helps the game to develop. Our society is such that we don't have enough numbers, willingness and capability to have talent in most sports. Lots of countries have naturalised citizens representing them. It just has to be clear local sport development is the key, and not the advancement of officials and second or third tier government leaders. Malaysia cup yes, but back to Abbas Saad/Jang Jung era, not quite back to Kim Song/Dollah era.
2. Some FT in the country is required, but the government needs to be clear not only with policy but execution, that these are the ones that are going to contribute to SG LT and not simply to make a fast buck. Our problem is not foreigners, it's too many foreigners of low quality and character, some with fake cvs and qualifications and even conmen and punks. Be much more discerning in the screening and assessment of FTs in not only sports, but all areas. To use another footballing example, there is also difference between Alexander Duric and Egmar Goncalves.