Foreign labor and economic growth policy options for Singapore

Weng T. Hui, Aamir Rafique Hashmi

Research output: Contribution to journalArticle

11 Citations (Scopus)

Abstract

Prior to the Asian economic crisis in 1997, Singapore's official projected medium-term GDP growth target was set at 7% per annum. Since then, the targeted growth rate has been reduced to 5%. This paper examines the implications of the 5% growth target on the labor requirements of the Singapore economy. It is shown that the projected resident labor force will not be able to keep pace with the increased labor demand and the share of foreigners in the labor force will increase significantly even under the most favorable scenario. Some implications of the increased dependence on foreign labor in Singapore are discussed. With permanent immigration fixed at the current level, various policy options and their effects on the demand for foreign labor are considered. These include improving labor productivity, raising the total fertility rate, increasing labor force participation of older workers and lowering the targeted rate of economic growth.

Original languageEnglish
Pages (from-to)53-72
Number of pages20
JournalSingapore Economic Review
Volume52
Issue number1
DOIs
Publication statusPublished - Apr 2007
Externally publishedYes

Fingerprint

Singapore
Policy options
Economic growth
Labor
Labor force
Labour productivity
Scenarios
Asian economic crisis
GDP growth
Total fertility rate
Immigration
Residents
Labor force participation
Labour demand
Older workers

Keywords

  • Foreign labor
  • Growth
  • Singapore labor market

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

Foreign labor and economic growth policy options for Singapore. / Hui, Weng T.; Hashmi, Aamir Rafique.

In: Singapore Economic Review, Vol. 52, No. 1, 04.2007, p. 53-72.

Research output: Contribution to journalArticle

Hui, Weng T. ; Hashmi, Aamir Rafique. / Foreign labor and economic growth policy options for Singapore. In: Singapore Economic Review. 2007 ; Vol. 52, No. 1. pp. 53-72.
@article{cb129ecfc5a042a78406482f53753eab,
title = "Foreign labor and economic growth policy options for Singapore",
abstract = "Prior to the Asian economic crisis in 1997, Singapore's official projected medium-term GDP growth target was set at 7{\%} per annum. Since then, the targeted growth rate has been reduced to 5{\%}. This paper examines the implications of the 5{\%} growth target on the labor requirements of the Singapore economy. It is shown that the projected resident labor force will not be able to keep pace with the increased labor demand and the share of foreigners in the labor force will increase significantly even under the most favorable scenario. Some implications of the increased dependence on foreign labor in Singapore are discussed. With permanent immigration fixed at the current level, various policy options and their effects on the demand for foreign labor are considered. These include improving labor productivity, raising the total fertility rate, increasing labor force participation of older workers and lowering the targeted rate of economic growth.",
keywords = "Foreign labor, Growth, Singapore labor market",
author = "Hui, {Weng T.} and Hashmi, {Aamir Rafique}",
year = "2007",
month = "4",
doi = "10.1142/S0217590807002567",
language = "English",
volume = "52",
pages = "53--72",
journal = "Singapore Economic Review",
issn = "0217-5908",
publisher = "World Scientific Publishing Co. Pte Ltd",
number = "1",

}

TY - JOUR

T1 - Foreign labor and economic growth policy options for Singapore

AU - Hui, Weng T.

AU - Hashmi, Aamir Rafique

PY - 2007/4

Y1 - 2007/4

N2 - Prior to the Asian economic crisis in 1997, Singapore's official projected medium-term GDP growth target was set at 7% per annum. Since then, the targeted growth rate has been reduced to 5%. This paper examines the implications of the 5% growth target on the labor requirements of the Singapore economy. It is shown that the projected resident labor force will not be able to keep pace with the increased labor demand and the share of foreigners in the labor force will increase significantly even under the most favorable scenario. Some implications of the increased dependence on foreign labor in Singapore are discussed. With permanent immigration fixed at the current level, various policy options and their effects on the demand for foreign labor are considered. These include improving labor productivity, raising the total fertility rate, increasing labor force participation of older workers and lowering the targeted rate of economic growth.

AB - Prior to the Asian economic crisis in 1997, Singapore's official projected medium-term GDP growth target was set at 7% per annum. Since then, the targeted growth rate has been reduced to 5%. This paper examines the implications of the 5% growth target on the labor requirements of the Singapore economy. It is shown that the projected resident labor force will not be able to keep pace with the increased labor demand and the share of foreigners in the labor force will increase significantly even under the most favorable scenario. Some implications of the increased dependence on foreign labor in Singapore are discussed. With permanent immigration fixed at the current level, various policy options and their effects on the demand for foreign labor are considered. These include improving labor productivity, raising the total fertility rate, increasing labor force participation of older workers and lowering the targeted rate of economic growth.

KW - Foreign labor

KW - Growth

KW - Singapore labor market

UR - http://www.scopus.com/inward/record.url?scp=34147178475&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=34147178475&partnerID=8YFLogxK

U2 - 10.1142/S0217590807002567

DO - 10.1142/S0217590807002567

M3 - Article

AN - SCOPUS:34147178475

VL - 52

SP - 53

EP - 72

JO - Singapore Economic Review

JF - Singapore Economic Review

SN - 0217-5908

IS - 1

ER -