After a public backlash against the influx of workers led to the biggest demonstration in more than a decade, Singapore will probably force companies to further reduce their reliance on foreign labor in the 2013 budget. Thousands of people gathered in a rare political protest about concerns that foreigners are taking jobs from locals and driving up housing costs. In 2012, Singapore's economy only grew 1.2 percent, the least in three years. This shows that the island is in a "new phase" of growth, where it must adjust to a smaller pace of expansion. The prime minister has stated that the hiring constraints are among the reasons for last years slow down.
The rising number of foreigners has contributed to competition for jobs, congested public transportation and surging home prices. The resulting public discontent contributed to record opposition gains in the 2011 general election, and caused Lee’s (prime minister) party to lose a parliament seat in a January by-election. The protest was against a population policy that may see the number of people on the island rise to 6.9 million by 2030 from 5.3 million now.
The inequality demonstrated here is the case of hiring foreigners or the local people. The foreigners are helping businesses and corporations by getting labor for cheap, but it's hurting the economy and locals by not allowing the money to circulate. The government took action by in 2012, they cut the proportion of foreign workers that companies can hire, and increased levies for employing them. Which resulted in 8 out 10 companies with manpower shortages.
http://www.bloomberg.com/news/2013-02-21/singapore-companies-brace-for-labor-curbs-after-protest-economy.html
Kayla Gammie
8:42 pm
2/24/13
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