the pitfalls of FT:the tide has turned

Because of the ease in getting PRs in Singapore, it is difficult or even in the case of the government saying we are narrow minded, that a company can be 100% F owned.

The FT policy has been around for a decade. In the engineering industry, F workers started flooding the industry since late 90s. After almost a decade or so, it has brought about the current situation in my opinion whereby F owned companies had sprung up, leaving the pioneer entrepreneurial SMEs which started out in the 70s and 80s in deep trouble. Many SMEs had no choice, but to conform. I would daresay the huge numbers of FT are actually the results of big, conglomerate GLCs. They do it indirectly through the issue of contracts to sub-vendors. Many sub-vendors, many of which are small firms forced to follow the trend of hiring FW.

Then increasingly, with limited budget and price competitiveness, many of the entrepreneurial SMEs could not build on talents and resources and found themselves increasingly dependent on the FT. These FT then set up their own business and thus replace our SMEs gradually.

Nowadays, these FT are holding hostage to certain areas especially in the engineering industry. Many young engineering graduates decided to venture into the so called greener pastures like finance and banking. The engineering and marine industries were the first to be affected in terms of the entrepreneurial spirit and innovation.

Slowly but surely, I think the trend will move on to industries like the IT, F&B or others. The real issue is not foreign entrepreneurship.

The real issue is that ultimately, these FT and PRs will not stay and build Singapore.

I think that is the real underlying concern of Singaporeans. Maybe we should have a statistical study of number of PRs who stay and go on to become citizens or in depth analysis of real impacts of such policies.

Years ago, while in university, my friend commented on the increasing numbers of PRCs esp in business, computer science and engineering faculties. He said that the real motives of these F students were to get the local university degree as a stepping stone to US (favourite) or European employments or further study. It took several years before they took some action or make it more difficult for that to happen (at least that is what I was led to believe).

GLCs are not ideal for the economy of the country. At least based on what I have read is that SMEs are the ones that sustain the Japanese economy during the rough period. The government can always about the global competitiveness etc, but

the thing is that how you are going to compete lower exchange rates and people who have nothing to lose or with the mindset to 'plunder' and go home.

If you are going to set up a business whereby you are going to make sure that you earn money by ensuring a certain standard of integrity, honesty, quality and responsibility as compared to somebody who is going to wayang and get as much as money in as short time as possible, who will be the in a more advantageous position. Ultimately, it will affect everybody especially the honest, not so clever, but dilligent folks who depended on responsible bosses for a living.

That is one area that I feel we have definitely regressed and that due to Singapore unique circumstances especially as a small nation, the consequences will be felt more greatly and deeply by the common folks.