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Singapore Must MaintainStrategic Open-Door Policy
on Pain of Further BrainDrain
Company incorporation specialist Rikvin agrees with DPM
Shanmugaratnam's recent statement that Singapore has to
maintain
an open-door policy in order to stay competitive globally and to
avoid
further brain drain.
Singapore Company Registration specialist Rikvin agrees with
DeputyPrime Minister Tharman Shanmugaratnams recent statement
that
Singapore will lose its competitive edge if it proceeds to shut
its doors
on highly-skilled foreign professionals. Rikvin also opines that
a
closed-door policy on skilled foreign professionals will be
detrimental
to the Republics economy and contribute to further brain
drain.
DPMs Shanmugaratnams statement draws reference to a recent
survey by National University of Singapores East Asian
Institute. The
study reports that Taiwans closed-door policy has devitalized
its
economy and hurt its global competitiveness. Over a decade,
the
policy has also contributed to an exodus of talented
professionals and
diminished real income for those who chose to stay.
Analysis by Rikvin shows that Singapore has been experiencing
brain
drain in spite of its shining qualities and partly due to its
open-door
policy on foreign manpower. According to data from the
Migration
Policy Institute, as of June 2011, approximately 192,300
Singaporeanshave emigrated and an average of 1,000 Singaporeans
have applied
for the Certificate of No Criminal Conviction monthly in 2010
to
get permanent residence abroad.
In a bid to create a more inclusive growth environment for
Singaporeans who are still residing in the island and to entice
highly-
skilled overseas Singaporeans to return to the Republic, the
Singapore government has introduced the following measures.
Firstly, the Ministry of Manpower (MOM) has raised the bar for
foreign
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8/2/2019 Singapore Must Maintain Strategic Open
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professionals wishing to attain the Singapore work visa.
Secondly,
MOM has announced measures such as higher Dependency Ratio
Ceilings and higher Foreign Worker Levies to moderate of the
inflow
of basic-skilled foreign labor. Additionally, the government
is
encouraging women, the elderly and the disabled to re-enter
the
workforce.
It remains to be seen whether these measures will slow down
the
brain drain phenomenon in the coming years. However, analysis
by
Rikvin shows that moving forward, a small island-state such
as
Singapore cannot afford to proceed with a closed-door policy
on
highly-skilled foreign professionals.
First of all, adopting such a policy would do little to
mitigate
Singapores immediate white- to gold-collar talent crunch.
Secondly,
a closed-door policy shelters Singaporeans from the reality of
an
increasingly competitive and intimately-connected globalized
economy. Instead, Singapore requires a more strategic
open-door
policy.
Commenting further, Mr. Satish Bakhda, Head of Rikvins
Operations,
said, This is a delicate issue. On one hand, there is an urgency
toensure that Singapore professionals and entrepreneurs stay in
the
Republic because they enjoy a vibrant, real-world business
environment which allows them to prosper in their own
homeland.
On the other hand, there is an urgent need to bring on board
game-
changing players, be it foreign professionals or entrepreneurs
who
opt for Singapore company incorporation, to share new ideas,
strengthen the local workforce and create opportunities for
Singaporeans to prosper.
There is no algorithm to resolve this issue. However, we
maintain
that a strategic open-door policy, such as the one Singapore
is
beginning to adopt, is the most feasible route to move forward
and
harmonize the two discordant issues. That said, a closed-door
policy
would do more harm than good to Singapores competitiveness in
the
long run and instead repel more local professionals to seek
greener
pastures resulting in further brain drain, affirmed Mr.
Bakhda.
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