NYT: Singapore’s Angry Migrant Workers; The government must ensure higher pay and an end to the abuse.

December 27, 2013

Singapore’s Angry Migrant Workers

By THE EDITORIAL BOARD

Frustration among Singapore’s unappreciated and underpaid migrant workers has been building in recent years as their numbers have grown faster than the country can accommodate them. Tensions boiled over earlier this month, after a 33-year-old Indian migrant worker was killed by a bus in the Little India neighborhood. A crowd of fellow workers from South Asia gathered at the scene. Their anger quickly escalated, with some 400 people pelting stones, attacking emergency responders and setting fire to vehicles. It was the worst riot to hit Singapore, one of the world’s most orderly countries, since 1969.Singapore’s government has denied that its treatment of migrant workers has anything to do with the riot. Prime Minister Lee Hsien Loong characterized the riot as “an isolated incident caused by an unruly mob.” Hundreds of foreign workers were rounded up and questioned; 25 face charges punishable by up to seven years’ imprisonment and caning. Two hundred migrant workers were issued advisories against any future disruptive conduct.

Singapore has one of the world’s highest standards of living, but its population is shrinking and aging. To fuel economic growth, transient imported labor has risen dramatically over recent years. The proportion of non-Singaporeans in Singapore rose from 14 percent in 1990 to 36 percent in 2010. Many Singaporeans are alarmed by the rapid increase of low-paid migrant workers, which has widened social divides and strained the small country’s transportation and housing capacities.

Migrant laborers are paid as little as 2 Singapore dollars, or $1.60, per hour. Few speak fluent English, the country’s working language, and most live in crowded dormitories away from residential areas. They typically are at the mercy of employers, owe high debt to hiring agents and have few means of expressing grievances. Last year, 200 Bangladeshi workers protested unpaid wages and Chinese bus drivers refused to report to work to protest salaries lower than their Singaporean and Malay counterparts.

The government hopes to increase the overall population from 5.4 million to 6.9 million by 2030. Because the birthrate of Singaporeans is below replacement levels and permanent residency is tightly controlled, the bulk of the increase will have to come from temporary migration, further skewing the ratio of transient workers to citizens. Many Singaporeans are lukewarm to the idea.

Casting the riot in Little India as an isolated law-and-order problem does not address Singapore’s larger demographic problem. If Singapore is to preserve its high standard of living, it must ensure that the millions of transient workers who contribute so much to the economy are not marginalized and abused.

 

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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