The regional economic crisis and Singapore: Implications for labor migration

Abstract

Backed by sound economic fundamentals and policies, the Singapore economy has so far been able to cope relatively well with the economic crisis. However because of its close links with the regional economies, the deepening crisis is expected to result in a significant economic slowdown not seen since the last recession in 1985. The worsening labor market conditions are not expected to lead to massive retrenchment and repatriation of foreign workers because of the policy of retaining workers by performance rather than by their nationality. Irregular migration is an increasing problem and as unemployment rises, the effective regulation and management of foreign labor and migration flows pose a crucial challenge to policy makers in Singapore.