Region Singapore economy away from its growing dependence on foreign labour while maintaining economic growth and competitiveness. Lack Of Credible Opposition: Singapore does not have credible opposition parties (although we are encouraged by the results of the ---- parliamentary elections), meaning that should the PAP s support falter, there is no one to take its place. ...Immigration Issues: Singapore has relied heavily on immigra- tion to make up for its declining birth rate and to sustain the rate of economic growth. However, the rapid influx of foreigners (the proportion of Singaporean citizens in the country fell from --.- of the total population in ---- to --.- in ----, and is forecast to fall to approximately -- by ----) has led to re- sentment by some locals, who see the foreigners as competing for the same jobs. Although the government has taken some measures, including slowing the rate of immigration and setting up programmes to help integrate foreigners, we still see minor risk of ethnic tensions, especially if the economy fares poorly. ...Opposition parties would eventually develop and may in time gather enough credibility to govern the country. However, this scenario will probably take well over a decade to play out.
...Although Singapore s ruling People s Action Party is likely to lose ad- ditional ground in the country s ---- general elections, we believe that it will comfortably maintain a considerable majority in parliament for some time to come. Meanwhile, although the party s recent populist shift is unlikely to reverse anytime soon, we believe that aggressive measures that would take a serious toll on the country s business envi- ronment are not in the cards in the near future. ...Indeed, over the past three years, government measures have taken aim at immigrant labour from all different skill classes, with policies ranging from higher levies on low-skill work permit holders to a tightening of educational, experience, and salary criteria for higher-skilled professionals. In H---, the government also introduced a new process for hiring foreign professionals at the skilled Employment Pass level, requiring businesses to post job openings in an online jobs bank aimed at Singaporean citizens for a minimum of two weeks before offering the job to permanent residents and foreigners (this process will officially take effect in August ----). pap plying new territory All of these measures speak to the pressure that the ruling PAP has felt from the electorate, which we note is somewhat without precedent in the short history of modern Singapore politics. ...pap plying new territory All of these measures speak to the pressure that the ruling PAP has felt from the electorate, which we note is somewhat without precedent in the short history of modern Singapore politics. At the same time, the government s policy trajectory has shifted from a considerably more business friendly stance in the early to mid ----s to a somewhat more balanced approach, with a noticeable bias towards addressing voter discontent - Business Monitor International Ltd www singapore Q- ----
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