Mr Seng Han Thong pointed out that we would need to bring in foreign workers even as we upgrade and develop our own local workers. Indeed, if our local workforce is fully employed, we will still face shortfalls, particularly if the economy grows strongly and particularly in some sectors.

I think before we discuss the ‘S’ Pass, which many Members have been focusing on, it is useful for us to see how the foreign workers have helped us over the last 10 years. I have divided the last 10 years into two periods, the first five and the next five. If you look at Chart 3, you can see the first five years, 1993-1997, boom years before the crisis. We attracted strong flows of investments. We created many jobs, nearly half a million, 470,000, and the jobs went to locals as well as to foreigners. 180,000 jobs to locals, 290,000 jobs to foreigners. In fact, in this period, more jobs went to foreigners than to locals, but nobody complained. Because there were not enough locals and if we have not given the jobs to foreigners and let the foreigners come in, our economy would have overheated, our growth would have been lower, and I think we would have been worse off.

In the second half, in the second five years, 1998-2003 (Chart 4) this was the Asian financial crisis period and post-Asian financial crisis. We lost many jobs, especially immediately after the crisis, and then again in the last couple of years, first, because of the September 11 attack and because of the global economic downturn. But if you look at the breakdown, the locals were not badly hit. The foreigners took the largest hit, especially in the past two years, as their numbers nosedived all the way down.

So my conclusion from this is that the foreign workers play an important role in our job market. During good times, they top up our supply of workers and enable us to grow faster. But during bad times, they cushion the impact which would otherwise fall squarely on Singaporeans.

Many Members expressed concern that the ‘S’ Pass scheme would hurt workers. Mr Nithiah Nandan spoke for the unions and explained how his members and his colleagues saw this. I understand their concern. But, overall, I believe that the ‘S’ Pass scheme will benefit Singaporeans and Singaporean workers. Let me explain why.

Even as we upgrade and train our local workers, we cannot provide the full range and diversity of skills and experiences which the companies need. No single country can. It is not just numbers. It is the range. It is the experience. It is what you are able to bring to the table. So we have polytechnic graduates and university graduates. The foreign workers on ‘S’ Passes will complement these polytechnic and university graduates, and allow our companies to grow and hire more Singaporeans.