Why does singapore need immigrants

Wealth Wise Series How they can help in wealth creation. Honouring Exemplary Boards. Deep Dive Into Cryptocurrency. ET Markets Conclave — Cryptocurrency. Reshape Tomorrow Tomorrow is different. Let's reshape it today. Corning Gorilla Glass TougherTogether. ET India Inc. ET Engage. Singapore's approach towards managing new immigrants and foreign talent can be summarised into two key strategies. The first attempts to incentivise foreigners into settling and integrating into the local society.

The second involves social stratification strategies to distinguish between transient workers and knowledge-based talent. Singapore's government incentivises non-residents on work visas to look towards progressively becoming a Permanent Resident PR and then a citizen through different levels of subsidies, taxation and general welfare schemes for each category.

For example, Singapore citizens enjoy very high rate of subsidies in housing, education and healthcare as opposed to non-residents or PRs. Singapore also makes a distinct effort to tier its work visas according to skilled and highly educated foreign talent as opposed to transient blue-collar workers. Although every country does this, Singapore goes even further by enforcing general orientation programmes on the local laws and demarcating special zones for their housing other than domestic helpers.

It should be noted that Singapore's experience in implementing and managing immigration policies as an economic driver does have its limitations in terms of transferability and context. As a small island, Singapore has benefitted from its strategic geographical position and high reputation of transparency and efficiency as a business hub, as well as law and order and an excellent bilingual education system.

As a result, Singapore's approach of attracting non-residents to plant their roots here with their families work well, especially for foreign talent from developing countries. Furthermore, Singapore is a young nation composed mostly of second- or third-generation immigrants.

Since its independence, its style of governance and way of life has been centred on meritocracy. Most individuals and companies accept and embrace a market-based approach to conducting business and hiring of talent. However, such a pragmatic approach to economic development may not work well in other countries that adopt a socialist view towards society and governance. There are also many larger countries that would regard social stratifications as unacceptable, especially in the European context.

The political cost of pursuing a pro-immigration policy to boost the economy struck home in Singapore's General Elections. The People's Action Party PAP , who has governed the country since independence and retains an overwhelming majority of seats in parliament, saw its lowest-ever vote share. Immigration more specifically, the pace of immigration and the tensions, disconnects and divides it creates between locals and newcomers had become one of the key points of discontent amongst the voters.

Amid a growing perception that immigrants are taking away jobs and eroding the city-state's cultural identity, immigration to Singapore has emerged as a hot-button political issue. In an email interview with WPR, Leong Chan Hoong, an associate professor at the Singapore University of Social Sciences, explains why immigration has become such a hot-button issue in recent years and how it might factor into the next general election, which could be held next year.

World Politics Review: Why has Singapore historically maintained an open immigration policy? What are the main challenges facing immigrants in Singapore?

As a small island city-state with no natural resources, it has always relied on its geographic location for trade and on its human capital for economic development. Like many cosmopolitan cities, Singapore faces economic, cultural and political challenges linked to immigration. There are formal procedures for calculating this measure that includes factors such as economic, social, physical, political and spiritual well-being. Singapore may be the smallest country in Southeast Asia but it has emerged as one of the best places to live in Asia with a very high quality of life measurement.

Singapore is known for its stable political climate. Despite being considered centralised and authoritarian, the political culture is pragmatic, rational and based on the rule of law. The highest goal of the government is the survival and prosperity of this small nation. This often means, having to make unpopular but hard and wise decisions in the interest of the nation.

The government believes in being pro-active and thinking for the future. Good governance is having a good system that will ensure the country survives, so that citizens have secure lives. Singapore boasts a competitive, corruption-free, open business environment. The Port of Singapore is one of the busiest in the world as the country focuses on electronics and chemical exports to richer industrialised nations. Today, Singapore is a knowledge-based economy and attracts multinational investments.

Its open trade policies, social stability, world-class infrastructure and international communication links, are some of the reasons why foreign investors flock its shores. The country is also known for its low tax regime. The corporate income tax rate in Singapore is approximately 8. Furthermore, there is no dividend tax, no estate duty, and no capital gains tax. It has benefited from these firms, as they bring in capital, technology, management know-how and access to international export markets.

Singapore has also realised the need to enhance its manpower and encourages top foreign talent to re-locate here. Hence the labour force is highly educated, competent and skilled.

People are amiable and courteous to each other. High emphasis is placed on communal and racial harmony. Ensuring security and personal safety for expats and their families has made Singapore a popular destination for international relocation. Expatriates continue to cite safety as one of the most attractive features of living in Singapore.