Total employment has recovered to pre-Covid-19 levels mostly due to the increase in foreign labour as border controls eased, but those in the manufacturing and construction industry, the largest beneficiaries of the foreign labour boost, said that the increase in numbers is only half the battle won. The lack of relevant skills in many of the new hires, who were brought in to replace more experienced workers who had left during the pandemic, has slowed down work, some manufacturing and construction firms said.
One employer said that for the construction industry, there needs to be an even greater inflow of foreign workers compared to before the pandemic, because projects have piled up during in the past two years, and that merely matching the pre-pandemic number may not be enough.
In the first half of this year, total employment — which excludes foreign domestic workers — had expanded by 108,500.
The increase was mainly contributed by non-residents — with 95,400 hires — particularly in the construction and manufacturing sectors, as “employers backfilled positions following the significant relaxation of border controls in April 2022”, MOM said. Mr Kenneth Loo, executive director of construction firm Straits Construction, told TODAY that the total number of foreign work permit holders working in his firm has reached close to pre-pandemic levels, compared to a 30 to 40 per cent shortage back in September last year.
However, he said “the problem is still that productivity is on the low side”. “The number of skilled workers is still low, as we lost some skilled workers that went back home, and the new workers need time to be trained to (meet) expectations, so productivity levels are not back to pre-Covid levels yet.”
For instance, Mr Loo said that for finishing works such as plastering and tiling, a worker may need months or even years of experience to carry these out proficiently.
“If what you do is not up to standards, you’ll have to rectify (the instalment) until you achieve the required standards,” he added. “If you employ a guy who is skilled, they’ll do it right the first time.”
Some employers in the construction sector, however, said that they are still facing a stark shortage of foreign workers. Ms Lei Lei, general manager of construction firm Sunbeam M&E, said that her firm is still about 30 to 40 per cent short on foreign manpower.
Economist Song Seng Wun from CIMB bank said it is imperative that the labour market does not tighten too much, because it could result in cost pressures rising exponentially as labour becomes even more expensive.
At a certain point, this increased cost may outstrip people’s purchasing power, resulting in a plunge in demand as people tighten their belts, possibly leading to a recession.
