IMPACT OF MORE MALAYSIAN WORKERS
The recruitment agencies told CNA they did not foresee employers in Singapore hiring more Malaysians over locals.
More applications just means there are now “more choices” of candidates to shortlist, said Mr Ng from Cultivar Staffing & Search.
Economists also pointed to Singapore’s dependency ratio ceiling (DRC), which refers to the proportion of work permit holders a firm can employ. For instance, the quota for the construction and process sectors is 83.3 per cent while that for services is 35 per cent.
Employers also have to pay a foreign worker levy for hiring non-resident workers, which rises progressively with the proportion.
Locals are therefore protected by these rules from the supposed “threat of a flood of Malaysians” seeking jobs, said Maybank economist Chua Hak Bin.
Moreover, as Singapore continues to generate more jobs than can be filled, wages should automatically be pulled up even in lower-paying jobs, with the Progressive Wage Model in place, noted Song Seng Wun, economic advisor at financial services firm CGS International Singapore.
UOB senior economist Alvin Liew pointed out that foreign labour inflows will provide “welcome relief” for many businesses in services sectors – such as in F&B, retail, administrative and support – which continue to face tight manpower conditions.
In some instances where businesses are expanding, the availability of more foreign labour could even spur domestic resident hiring, he added.
Mr Liew also pointed to a Memorandum of Understanding signed by Singapore and Malaysia in January, to set up a new Johor-Singapore Special Economic Zone (SEZ) aimed at boosting cross-border economic connectivity between both countries.
If this becomes a reality, it will add to greater flows of labour between the two economies, helping to expand further economic activity and business opportunity for both Singapore and Johor, said Mr Liew.
There will also be more alternative accommodations for foreign workers if SEZ succeeds, he added.
For now, Malaysians like Ms Gunavathi will keep at their daily, hours-long journeys to and from work across the border.
She recalled how the first few years were “too much to handle”, with the commute taking a toll. These days, she still doesn’t have much time for her personal interests but Ms Gunavathi believes she’s getting better at managing her day.
“I (tell myself) this is how much time I have and how am I going to make it useful,” she said. “Now I can plan it well … after eight years.”