foreign talent dilemma

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"Attracting Talent vs Looking After Singaporeans"

INTRODUCTION: A VISION FOR SINGAPORE

1. In the 21st century, Singapore will be even better than it is today: an exciting city inwhich to work, live and play; a global hub pulsating with energy and ideas. TheSingapore economy will be vibrant, our culture brimming with diversity, and oursociety strong and united.

2. To achieve our vision, we must make Singapore a centre of opportunity.Singapore will be a hub in Asia where people can advance their economiclifestyles, pursue their interests and find happiness in their lives. We will be asociety where everyone matters, where everyone is valued, and recognised for hisor her myriad contributions.

3. Singapores continued prosperity and success depends on our ability to maximisethe talents of all Singaporeans, as well as to develop a deep-seated sense of

belonging or rootedness to Singapore. Singaporeans must be allowed tobecome the best they can be. We should develop a more encompassing definitionof success. People must be encouraged to try the road less taken, to explore whatlies off the beaten track. We must recognise success even in the single penny

picked up at the end of the rainbow, and respect, applaud and celebrate the diverseaccomplishments of fellow citizens. Locals have to feel that Singapore is our besthome, best hope. Singaporeans must believe in our country, identify with itsdestiny and stand ready to contribute to, suffer for and defend our society, values

and nation.

4. Our continued success also depends on our ability to attract and retain talent. In thenew millennium, talent is not something nice to have; it is the essentialingredient for sustained success. We should not see foreign talent as queue-

jumpers in the race for j obs in Singapore; nor as opportunists competingunfairly. Rather, as we shall explain, illustrate and seek to convince in this report,foreign talent help to make Singapore more competitive, and create moreopportunities than we can generate on our own. This will be crucial in enablingSingaporeans to find fulfilment and achieve the good life. Singaporeans haveexpressed concerns. However, after much discussion and deliberation, our

committee feels strongly that there is no contradiction between making Singaporeour best home and a talent capital. These two goals are mutually self-reinforcingand synergistic.

Why Do We Need Foreign Talent?

5. Talent is crucial to Singapores survival and success. To maintain our long-termcompetitiveness, Singapore must transit into a Knowledge-Based Economy (KBE).What is a KBE? In the 20th century, production of wealth was through the use ofraw materials, labour and capital. But, in the 21st century, talented people and the

services, ideas and innovations they generate will be the critical factors. We needtalent to deal with forces of globalisation and the challenges wrought by advances

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in technology, especially Information Technology (IT). We need talent to stayahead.

6. Major cities around the world have thrived because of talent and their ability to

absorb the best and brightest. Even a country of abundant resources like the USneeds talent. In 1998, the US Congress approved an increase in the number of visasfor foreign talent that allows the US to continue absorbing the brightest minds fromaround the world. In Silicon Valley, a small town has been transformed into avibrant home for start-ups and ventures because of the ability to draw top IT talentfrom all over the world, especially Asia. In the US, the immigrant ethos is stillvery much alive and this enables the country to continue to welcome talent fromabroad and to benefit from their contribution.

The sea welcomes a hundred brooks,

Only those with big hearts can accommodate others

- Chinese saying

7. Singapore, too, must be the sea that continually welcomes a hundred brooks. Being big-hearted and accommodating enable Singapore to be plugged into the globalnetwork. We will benefit from the cross-fertilisation of ideas and thinking thatcomes from the convergence of a hundred sources.

What Do Talent Bring To Singapore?

In a knowledge-based era, the scarce strategic resources that will allowone company to surpass its competitors is the quality of the peopleworking for itcompanies that seek people with a passion that makes realthe oft-repeated rhetoric that `people are our greatest assets can gainenormous returns on that scarce asset. As one manager told us: `We mustthink of our company less in product-market terms and more as collectorsof great people.

- Christopher A Bartlett and Sumantra Ghoshal, Play the Right Card toGet the Aces in the Pack, Financial Times1

8. Besides bringing valuable skills, knowledge and ideas, the foreign talents vigourprovides powerful motivation for us to continually strive for higher standards. Theyalso strengthen our society by keeping alive the migrant spirit and instincts thatgive Singapore a critical advantage. Their example can make us aware of thedangers of becoming complacent.

1 Ghoshal, S. & Bartlett, C. A. (June 28, 1998). Play the right card to get the aces in the pack:

Management recruitment. Financial Times, p. 14.

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9. Foreign talent does not just help to enlarge our economic pie but also make our pietastier and more diverse in flavour. They introduce the croissantto supplement ourroti prata. Foreign talent brings variety and diversity to Singapore, adding colour,

richness and spice to our cultural life. We not only need top economic people buttop-class artistes and musicians as well. To compete in the World Cup, we toomust, like France, absorb international sports talent. This will add a cosmopolitanflavour to Singapore and enable us to compete in the big league.

10. Singapore is a small country with no natural resources and a small population. Inwelcoming foreign talent, we benefit from global education and training resourcesand use it to supplement and complement our own. Attracting top specialists intheir fields to Singapore raises our countrys profile: talent attracts talent. Thishelps to make Singapore a world-class talent capital as well as to establish anetwork with international specialists. To become a truly globally competitive city,

Singapore must forge links with every major dynamic economy and incorporatetalent from all regions of the world.

Who Are Foreign Talent?

11. Talent refers to both foreigners and locals. Local talent is valuable but with a population of three million, the Singapore pool is not large enough when thecompetition we face is the world. Our local pool must be augmented with the bestskills and talents that can be tapped globally. Just as the brooks enrich the sea,foreign talent enlarges our human resource pool, strengthens our competitiveness

and increases our social vitality. We think of foreign talent to be people who havecertain internationally marketable experiences and skills, and who can do the jobsthat Singaporeans cannot do, or where there are just not enough Singaporeans to dothe work. They include foreigners who work in our industrial and commercialsectors as well as those in our universities and research institutes. The foreign talentmay be an entrepreneur, IT specialist, artiste or sportsman in our S league. Theycan also be foreigners in our education system who strengthen schools throughgreater competitiveness and diversity.

12. What we want is to complement our local talent with talent from overseas.

How We Have Benefited and Continue to Do So?

13. How have we benefited from foreign talent? We need only to remind ourselves thatforeign talent is not new to Singapore but has been an integral part of the Singaporestory. Historically, Temasek has been an oasis for immigrants. People from afar, bethey Chinese, Indians, Arabs, Eurasians, Jews or Armenians sailed here seeking a

better life. Some fled famine and chaos while others brought new businesses andideas. But all were determined to succeed in a foreign land. All but one of our firstCabinet were foreign-born and, without them, Singapore would not be where we aretoday. In the private sector, contributions to Singapores economic development by

foreign CEOs and business leaders, as well as their MNCs, are also well-documented.

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14. We continue to benefit from foreign talent. The benefits that foreign talent bringare not just economic but are spread out across many sectors. Let us explore somespecific examples.

15. Higher Education: As our economy matures and moves towards high value-addedindustry, the government has increased the opportunities for tertiary education. Thenumber of full-time tertiary places (university and polytechnic) has increased fromabout 14,900 in 1988 to about 66,200 in 1998. This increase was made possible byrecruiting quality foreign lecturers to supplement our local talent pool, especially inareas where locals are lacking or difficult to recruit like in animation, digital mediadesign, etc. In the past 10 years, the number of full-time foreign academic staff inour tertiary institutions have increased by about 840 in absolute numbers. The

proportion of foreign academic staff with respect to the total academic staff

strength, however, has remained at about 26%.

16. Attracting foreign lecturers, researchers, technical specialists and postgraduatestudents to Singapore, either into our tertiary institutions or through the setting upof joint institutions, also helped in the transfer of expertise from other countries toSingapore. For example, at the early stages when the German-Singapore Institute,French-Singapore Institute and the former Japan-Singapore Institute of SoftwareTechnology were set up, foreign technical specialists from these countries wereattached to our tertiary institutions and had helped in the development of coursecurricula and training of staff. In addition, they have also helped to raise thestandard of the research work.

17. Overall, the presence of foreign expertise not only supplements our local talent poolbut also helps to raise our standard of intellect diversity through regular interactionand sharing of knowledge and experiences. This has not only helped to raise thestandard of our education but enriched our campus life.

18. Research & Development: Foreign talent have similarly contributed to Singaporesresearch and development (R&D) scene. In 1990, we had about 3,600 local ResearchScientists and Engineers (RSEs) and 700 RSEs from overseas. We recognised thatthe R&D field is an area that can give Singapore a technological leading edge in

regional and global competition. We strived for a more highly-educated populationwhich would create conditions ideal for R & D work to be brought to Singapore. Weattracted foreign RSEs to work in Singapore. By 1997, we had expanded the totalnumber of RSEs in Singapore to 11,300. Foreign RSEs contributed 2,300 or 21% ofthis number. With the greater number of more highly qualified RSEs, our ResearchInstitutes (RIs) were able to make greater strides and contribution.

19. For instance, the Institute of Molecular Agrobiology (IMA) had conducted manyagricultural technology research projects which led to commercialisation of new

products like rice with better resistance to diseases and yields, and cotton withimproved traits. In 1996, the IMA collaborated with China to access upstream

technologies developed in research institutes there and transfer them to Singapore forfurther development work and product commercialisation.

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20. Another example is the Institute of Molecular Cell Biology (IMBC) which was ableto establish its name. In November 98, IMBC entered into a bilateral partnershipwith the Medical Research Council of Canada to support R&D activities in both

countries, geared towards the creation of intellectual properties in the biomedicalfield. The long term objective is to utilise this intellectual property pipeline to spinoff and support Singapore-Canada biomedical ventures and to create opportunitiesfor corporate partnerships with major global drug companies.

21. Another example is the Centre for Remote Imaging, Sensing and Processing(CRISP) of the National University of Singapore (NUS). CRISP developed acomputer-modelling system linked to powerful satellites which can help monitorland or sea pollution, forest fires, seaport congestion as well as track lost ships. Thiscomputer system is used by the Ministry of Environment and the Maritime and PortAuthority (MPA) to monitor forest fires in the region, and track pollution at sea. It

was immensely useful during the 1997 Haze episode and was deployed to assistIndonesia to monitor hot spots in her battle to curtail forest fires from starting andspreading. The system was also successfully employed to help MPA clean up themajor oil spill in Singapore waters in 1997.

22. Some of the most exciting technologies in the IT world are being developed at theKent Ridge Digital Laboratories (KRDL). One product enables surgeons to rehearsetheir operations in 3-dimensional computer models making surgery safer. Another

product creates an invisible digital watermark on digital products (eg. digital music,books, photos) which brings added security to electronic trade and services. A thirdproduct can recognise spoken Mandarin and reproduce it on screen, removing the

need for slow and cumbersome keyboard input.

23. As we develop the calibre and increase the number of RSEs in our R&D industry,overseas Research Institutes (RIs) have been attracted to partner with us. In

November 1998, leading US medical school, Johns Hopkins Medicine, announced ithad selected Singapore as the site for its very first clinical facility outside of the US2.The 75 research scientists at Johns Hopkins Singapore Clinical Services will workclosely with local institutions and together, are expected to bring Singapore into theforefront of research and education in diseases common in this region. Suchcollaboration will raise the profile of local researchers through the yield of patents,research publications and other medical innovations. Undoubtedly, Singaporeans

and our neighbours will also benefit from leading edge medical care.

24. Though Singapore has made progress, we still lag behind in the number of R&Dscientists and engineers compared with developed countries. Working on the ratio ofR&D personnel per 10,000 Workforce, the 1998 figures for Japan is 138.6,Switzerland 121.7 while Singapore is only 59. We have quite some ways to go. Weneed more top quality R&D scientists and engineers in Singapore.

25. Manufacturing: Manufacturing is a high growth sector and a major provider of jobsfor Singaporeans. In the 1990s, manufacturing has been growing at an average of 8

% a year. Today, manufacturing accounts for about a quarter of Singapores GDP2 Johns Hopkins hospital in Singapore (November 5, 1998). The Straits Times, p. 35.

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and employs about 23% of Singapores workforce.

26. In the 1960s, when unemployment in Singapore was high, Singapore attracted manymanufacturing Multi-National Companies (MNCs) to create employment. In those

days, the top management in such MNCs consisted mainly of foreign talent whosemanagement and technical skills contributed to the creation of jobs and opportunitiesfor Singaporeans. Many of the MNCs such as Philips, Hewlett Packard, IBM,Motorola, Esso and Sundstrand have since localised the management team, with theirtop management having handed over and transferred their skills to Singaporeans.Hence, the presence of MNCs and expatriate managers in Singapores manufacturingsector has not only created jobs for Singaporeans but also created opportunities forSingaporeans to rise to the top.

27. Foreign talent have also played an important role in shifting Singaporesmanufacturing sector into more high value-added and knowledge-driven activities.

For instance, when Singapore first started attracting MNCs to conduct waferfabrication activities, there were few Singaporean engineers with the skills andexperience needed for the industry. Training programmes were conducted to equipSingaporeans with the necessary skills. However, such training took time and manyforeign engineers had to be recruited to fill the shortage in skills and experience.Openness to foreign talent is a key factor that makes Singapore attractive to MNCs.Without such foreign talent, Singapore would not be able to start up high-techmanufacturing activities such as wafer fabrication that creates high-paying andmeaningful jobs for Singaporeans.

28. Business Services: Recently, in October 1998, Singapore edged out Sydney, Manila,and Hong Kong to host Caltexs global Headquarters (HQ). This is the firstmultinational global HQ to be based here3. With sales of US$9.9 billion, Caltex wasSingapores largest oil trader in 1996, an amount equivalent to about 12 percent ofSingapores Gross Domestic Product. Caltex is the largest private company inSingapore, with a 1997 turnover of S$14 billion. Explaining Caltexs move, EDBsaid that Caltex was a company that likes to get involved with a country. Theylooked very favourably at our initiatives towards developing Singapore as aknowledge-based economy, bringing in world-class institutions like INSEAD.Chairman of Caltex, David Law-Smith explained that the move to Singapore will

position us centrally in the areas where most of our business allows us to be closer to

our customers and serve them more effectively. Singapore is a dynamic,international city with great infrastructure, talented people and high livingstandards.

29. Financial Services: The Monetary Authority of Singapore is promoting Singaporeas the Asian hub for specialist financial services. In order to achieve our aim of

becoming a leading financial centre in this time zone, we need to developcapabilities in many key areas where local talents are scarce. Some of these areasinclude investment banking, derivatives, actuarial services, reinsurance, asset andrisk management.

3 Velloor, R. (October 22, 1998). Caltex to move global HQ here, The Straits Times, p. 1.

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30. Today, EP holders make up about 15% of the financial professionals in thelicensed financial sector. The annual growth of Employment Pass (EP) holder inthe financial sector over the last 4 years has averaged 12%. The flow of foreigntalent into Singapore's financial sector brings in expertise in cutting-edge product

innovations and transfers world-best financial practices to Singapore. This willbolster our domestic skills and knowledge pool as well as further enhance ourposition as a financial hub of Asia. In the process, this will create better and higherpaying value-added jobs as well as contribute to our economic growth.

31. Entertainment: In 1983, the then Singapore Broadcasting Corporation beganrecruiting foreign talent, primarily from Hong Kong and Taiwan, to help set up theChinese Drama production unit. These talent were mainly in key productionmanagement and creative grades like director-producers, scriptwriters, story

planners, lighting men, and cameramen: professions where local expertise was not

readily available. In the 1980s, foreign talent comprised close to 25% of the totalChinese Drama production talent pool. Of these foreign talent who are still activewith local productions, more than 80% have taken up Singapore citizenship or PR.

32. In the 15 years since the inception of the Chinese Drama unit, much productionknow-how has been transferred and the local talent pool has learnt through their jobswhile working closely with the foreign talent. Today, locals make up 84% of thetalent in Television Corporation of Singapores (TCS) drama talent. However, TCScontinues to actively exchange ideas and expertise with producers in Hong Kong,Taiwan, Malaysia, and China. The entertainment value of TCS productions hascertainly gone up because of foreign talent.

Foreign talent have helped raise the production standard of TCS. Theyhave also helped Singapore break into the international entertainment

scene. For example, TCS artists like Shanghainese compere Wang Yanqingrecently won the Asian TV Best Compere award. Malaysian Christopher

Lee is also well received by the Taiwanese when the Singapore-producedserial Return of the Condor Hero was aired via TCS satellite TV inTaiwan.

Lee Bee Furn, media consumer in her 20s.

33. Orchestra: In 1979, when the Singapore Symphony Orchestra (SSO) performed itsfirst concert, Singapores musical talent base was small and only 8 out of the 41musicians were Singaporeans. The presence of foreign musicians has not onlylivened the music scene in Singapore, but also helped to build up the local talent

base through the transfer of skills to Singaporeans. Many have also becomeSingapore citizens. Today, out of the 89 musicians in the SSO, 70 of them areSingapore citizens of which, 36 are foreign born.

34. Sports: A couple of years back, the S-League was created amidst concerns that theSingapore soccer standard would not be high enough to sustain interest. The S-

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League has since grown in popularity, with the development of home-grown andforeign football talent. Soccer fans recognise the need for scouting and bringingforeign talent into Singapores soccer scene to enhance the standard of the game andthe local soccer players here. A typical call by fans is for Football Association of

Singapore (FAS) to import foreign talent, just as some sectors of the economy haddone.

35. Import of foreign soccer players has helped make the game more interesting andentertaining. This has also created healthy competition and opportunities for ourlocal aspiring players.

Fans come to watch the match partly because they want to watch foreignplayers who generally are of better quality than the locals. Though thiswould deprive local players the chance to get into the first team, however,in the long term, the skills of our local players would improve by playingwith these foreign imports.

- Eric Teo, avid soccer fan.

36. In each of the above areas, Singaporean talent has played a major role in our success.We can be truly proud of the contributions and accomplishments of our fellowcountrymen. But we must also be humble enough to recognise that the progress wemade could not have been achieved as rapidly without the infusion of foreign talent.Foreign talent is a pool to supplement local talent. At the same time, we also benefitas critical skills are passed on to locals, thus raising overall standards and

proficiency.

PUBLIC CONSULTATION AND FEEDBACK

37. Our Subject Committee found that although the economic reasons for attractingforeign talent are strong, concerns were raised on the possible negative impact thatattraction of large numbers of foreign talent might have on Singapore. Suchconcerns merit serious consideration and our committee had set itself the task ofdoing so. A series of 11 Focus Group discussions was arranged for committeemembers to meet with Singaporeans from different walks of life to hear their viewsand discuss their concerns. The committee met with executives, professionals,employers, grassroot leaders, trade unionists, NUS students, foreign talent, artistes,

polytechnic and ITE students, ethnic minority groups, returned graduates andscholars and the teaching and medical professions. (A summary of views

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articulated is at Annex A.) At these Focus Group discussions, animated debatesyielded at times an exchange of strong and polarising viewpoints. A publicconsultation feedback session was also held on 21 November 1998, where about athousand members of the public were invited.

38. Not all the issues and questions were resolved for everybody. But Focus Groupparticipants unanimously agreed on the need for talent, and that we should attractthem here as Singapore is a small country with a small pool of people. Most wereconvinced of the economic rationale for bringing in foreign talent with higher skillsand experience, that this would create wealth and, consequently, more jobs andopportunities for Singaporeans. However, concerns about the impact of foreigntalent, especially in this economic downturn, were also raised. These concernswere real and legitimate. But in discussions that followed, the committee concludedthat the problems were not insurmountable.

39. Two extensive surveys were conducted as part of the S21 project. In June, theStraits Times published a survey that essentially confirmed the findings of ourFocus Group discussions that most Singaporeans accepted the rationale and supportthe policy of bringing in foreign talent. 76% of those polled supported thegovernments move to attract foreign talent while 23% did not. YoungerSingaporeans were also more supportive, with 85% of them in their 20sbeingsupportive. This contrasted with only 68% for those in their 40s.

40. A Forbes survey conducted in July found that 56.6% polled felt that Singaporeneeded foreign talent to complement our work force, while 16% felt Singaporecould do it alone. One in three Singaporeans felt that foreigners created more jobs

than they took away, while one in four thought the reverse. About one in fourwere neutral i.e. they did not know what to think or were unwilling to commit.What these surveys revealed was that although Singaporeans were convinced of theeconomic rationale for foreign talent, deep down, they remained anxious about theimpact of bringing in foreign talent. The uncertainties brought about by theregional crisis were also reflected in the many non-committal and neutral responsesto the issues. The main concerns are examined in detail in the following sections.

Major Concern 1: Will I Still Have a Job?

41. The top concern expressed was fear of being crowded out of jobs. The skies werecheery when the S21 project was launched. But since then, tectonic changes haveoccurred across the region. Given the regional economic slowdown and its impacton Singapore, quite a number of people questioned whether we should continue towelcome foreign talent. During hard times, they argued, Singaporeans should begiven first preference for jobs. Emotional pleas were made that the governmentwas morally obligated to take care of its citizens.

Loyalty demands protection. In times of crisis, the government must lookafter its people.

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Where there is sugar, there will be ants. But what happens to the picnicwhen the sugar supply runs low?

- Focus Group participants

42. We expect these fears and sentiments to increase if economic conditions continueto deteriorate. Measures that directly protect jobs for Singaporeans will onlyreduce our national competitiveness and ability to weather the storm. We need to

be like athletes who build up stamina and skill from training and participation incompetitions. Repatriating foreigners will not solve the economic problems.Keeping foreigners out will ultimately cost locals to lose more jobs because thetalented foreigner takes job opportunities away with him. For instance,retrenchment of experienced and globally-connected foreign bankers will affect our

financial industry and our ability to compete with overseas financial markets.Saving a few jobs for locals may end up causing Singapore to lose more jobs.

The onset of the currency and financial crisis illustrates another way inwhich foreign talent can contribute to Singapore. Local staff were slow toreact to real-life rapidly depreciating currencies and asset values. That

proved to be a costly experience for some of us.

- Kong Siew Cheong, manager in a major securities house

43. We also sensed that Singaporeans were worried that employers might prefer to hireforeigners. Some Singaporeans felt foreigners were willing to take on unpleasant

jobs and to toil harder, such as working over time and doing shift work. Duringthe economic downturn, they were particularly worried these foreigners would bewilling to work harder for less, putting pressure on them to work longer hours atthe expense of a quality life-style.

44. Some Focus Group participants felt that each time they got closer to the Singaporedream, the goal posts would shift, and be moved further away. They felt that thegovernment policy to bring in foreigners was aimed at making them work harder.

They perceived some of the talent being imported as not real talent but cheaplabour. Our committee noted that this concern was greatest not with the top

professionals or low-end workers, but the middle band. It was the ordinary whiteand blue-collar jobs that Singaporeans felt they could do just as well that the threatwas felt most. The more highly-paid Singaporeans also tended to feel more secureabout their jobs. Less than half of those who earned under $1,000 a month feltsecure about their jobs, while 77.4% of those who earned more than $4,000thought so.

45. Some participants suggested that we should be more selective such as recruitingforeign talent only in sectors with severe manpower or talent shortages, or only for

strategic growth industries. However, it would be problematic for the governmentto legislate specific areas. What criteria, for instance, should the government use,

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especially for professional and high level talent? Our committee believes that itwould be best to leave such decisions to free market forces.

46. In a world where advances of technology have made every region accessible to

each other, competition is truly global. Every country competes against another. Ifwe do not attract talent to Singapore, they can easily go to elsewhere and competeagainst Singapore from there. As Minister Teo Chee Hean has said, At least ifhes here, he is part of our team, helping to make the big picture here, and I thinkwe prefer to have more good people on our team than out there on another team.Protectionist policies will only blunt Singapores competitive edge in the globaleconomy. By helping companies remain competitive, foreign talent actually

protects and creates jobs for Singaporeans.

47. Our committee feels strongly that the way to look after Singaporeans is to helpthem upgrade to their fullest potential. In this regard, $420 million has been

committed for the Skills Redevelopment Programme (SRP) and Critical EnablingSkills Training (CREST) programmes. A Skills Development Centre is now inoperation to meet the demands for more training places. We make furtherrecommendations later in the report.

Major Concern 2: Will My Children Have a Place in School?

48. The second key concern expressed was Singapore children were being crowded outof our schools. Many (59% in the Straits Times survey) felt that the specifictargeting of foreigners would crowd their kids out of the best schools. Worse,

allowing large numbers of foreign students would have a ripple-down effect andmake it even more difficult than now for young Singaporeans to find a place ingood schools.

49. Unlike the first concern, these concerns were expressed by parents who wereworried about the hope and future of their children, rather than their ownimmediate welfare. Some asked the government to protect the positions forSingaporean children in good schools. They argued that our children should begiven the best educational opportunities, so that they could compete in future asworking adults.

50. We are confident that the government will ensure that no child in Singapore isdenied a place in our schools. However, to realise our vision for Singapore, wecannot shy away from competition. We can choose to bury our heads in the sandlike ostriches but that will not make the competition go away. Protectionism willnot help us but stymie the growth of our children. Instead, teaching our childrenearly how to swim will ensure they can swim faster and further later on in life.

51. Foreign students will benefit our schools and children. They will raise standards byspurring excellence in our classes. Like foreign talent in our work force, foreignstudents in our schools are another resource we can tap. They bring with them newcultures, innovative ideas which can stimulate and broaden the outlook of our local

students. Many schools are already observing national days of other countries andcelebrating cultural diversity.

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52. The youth of Singapore must also develop international awareness and globalmindset. An island mindset will spell undisputed failure for Singapore. We mustcreate opportunities for our students to travel overseas and interact with foreign

students. Some schools are already organising excursions, study trips and exchangevisits during school holidays to countries like the UK, France, Australia and China.These should not only continue but be further encouraged .

Major Concern 3: Second Class Citizens

53. The third key concern was locals fearing that they would be turned into second-class citizens. Some 24% of those polled by Straits Times felt that the governmenttreated foreigners better than Singaporeans. In theForbes survey, 55.2% thoughtthat PRs have the same privileges as citizens, while a small minority (8.7%)

perceived that PRs have even more privileges than citizens.

54. Anecdotally, many felt that foreigners, including PRs, enjoyed benefits withoutobligations like national service. Examples cited included: foreigners not having to

pay CPF which makes them cheaper to employ, foreign talent enjoy housingallowances, JTCs scheme providing housing for foreign talent, and subsidisededucation and healthcare for PRs. Other than complaints about inequity, localsalso felt unhappy that many foreigners were no more than birds of passage, whowould not hesitate uprooting from Singapore the moment things turned bad.

55. Some Singaporeans felt that foreigners were granted permanent residency too

easily and that PR status had all the privileges of citizenship. There weresuggestions that the criteria for granting PR should be made more stringent and thePR should have certain obligations to reflect commitment to Singapore. Somesuggested that foreigners who wished to continue working in Singapore for anextended period of, say, more than 10 years, must decide to become PRs and thencitizens. Otherwise, they would enjoy the benefits of working and staying inSingapore, without the corresponding duties and responsibilities.

56. However, imposing such restrictive conditions works against our broad strategicobjective of attracting talent, which is an extremely competitive business. In aglobalised world, talent is internationally mobile. To bring them here, Singapore

must be made as attractive as possible to work and live in. A better way is toattract the foreign talent to cast his lot with Singapore and opt to become a PR andperhaps later for his children to be citizens.

57. For Singaporeans, we believe that there are clear benefits of citizenship which arenot enjoyed by the foreign resident. We discuss this later in the report.

How should the concerns be addressed?

58. Our committee felt that the concerns expressed are reflections of Singaporeans

desire to better our living standards. We want better jobs, good opportunities and acountry we can protect and call our home. From the Focus Groups and public

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feedback, it is clear that most Singaporeans agree with the need to attract andrecruit foreign talent for the future of Singapore. Equally clear is that someSingaporeans are concerned that foreign talent will have a competitive edge overthem and take away the better job opportunities. Since a protectionist reaction will

only work against ourselves, we should resist that temptation. Instead, a win-winsolution would be to respond by looking for ways to improve the skills andcompetitiveness of our people - to provide opportunities for Singaporeans todevelop to our fullest potential.

59. We must not have a foreigners-them, locals-us attitude. Foreign talent willsupplement our strength as we work side by side together for the development ofour nation.

What does it mean to be a citizen?

60. As we listened to and discussed the concerns expressed during our feedbacksessions, one of the themes we repeatedly returned to was the question of what itmeant to be a citizen. To us, citizenship is more than economics. Citizenshipconfers intangible benefits, and it also requires commitment beyond mereeconomic contribution. Above all, citizenship is about belonging to a place, havinga sense of ownership and calling it home. This is a right for those born here, but a

privilege we extend to others only when they share our same hopes, values andvision for the future.

61. As Singaporeans, we live in a safe and secure city, where law and order prevails,

where we can raise a family without fear of crime or discrimination. We enjoy aclean and green environment, safe grounds in which our children play and socialcohesion and racial harmony. The Singapore passport also entitles us to theinvisible protection of the state, wherever in the world we may be, at work or onholiday.

I feel secure whenever I travel because my citizenship engenders fullconfidence that I will be helped should I face difficulties when abroad. Iwas especially glad to be a Singaporean when I was in Japan right after

the Kobe earthquake as I was assured that I would be guaranteed a seaton Singapore Airlines to return to Singapore even if I did not have asingle cent on me.

- Angie Monksfield, mother of two who decided to become a Singaporecitizen 10 years ago

62. Our sense of belonging comes from things uniquely Singaporean. It is that specialfeeling when you hear a local accent or smell familiar food when you are in aforeign country. It is that familiar accent which reminds us of our sunny island in

the tropics. It is the pride we share when the Singapore flag is planted on top of

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Mount Everest. It is our collective memories of life in Singapore, from thegeneration of our forefathers, to the future we hope for our children.

But what was it exactly which made me hang on so tenaciously to mySingapore passport? Well, it is not something I can explain easily. Theclosest way I know how is to say that it concerns deep feelings of identityand belonging...if your country has been good to you, if you have friendsthere going back a long way, even back to primary-school days, and if youhave fond memories of your homeland, then renouncing your citizenshipwill be a nearly impossible step to take I actually felt an affection formy little red Singapore passport. The idea of holding any other passport,was, well, alien to me.

- Ow Wei Mei column, The citizen who came home, Straits Times, July1998

63. Citizenship is both a matter of pride and duty and nowhere is this more clearlyillustrated than the National Service issue. On the perceived inequity of NationalService, some pointed out that Singaporean males were disadvantaged by losing 2years of their lives and also later, during their work years, when they wereregularly recalled for in-camp training. The committee has made somerecommendations in this area which will be detailed later in this report.

64. Singapore men will recall that it is immense trepidation he first feels when calledup to give two years of his life to the country. But as he dons the camouflage greenand goes through the strenuous training, he begins to appreciate the importance ofthe SAF to the defence and security of the country. Each and every individualyoung soldier contributes to the well-being of the nation. It is a crucial rite of

passage for all Singaporean males, which brings us together as one multi-racialnation. Parents also gradually accept that National Service moulds the hearts andcharacter of our nations young men. While some Singaporeans feel that there isdisruption to their careers, especially when they are called up for reservist training,there is broad recognition of the importance of national service.

65. Perhaps there is no better way to express the pride we feel about being Singaporeanthan the joy and jubilation at the annual National Day Parade. It is a celebration ofour nations birthday and an affirmation of the good life we have as Singaporecitizens.

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It didnt bother me that Id spent so many years away from Singapore.But, standing in the National Stadium, saluting that gigantic flag flyingoverhead while listening to 60,000 voices belt out the national anthem,deafened by the collective roar from the sea of people around me. I knewthen that was what Id lost by being away: the remarkable unity andharmony of multiple races, religions, and creeds that you find nowhereelse in the world, only in Singapore.

- Su-lin Gan, University lecturer who recently returned after spending 11years away from Singapore, at her first National Day Parade

ATTRACTING TALENT

66. Let us return to the question of how Singapore can and what we should do toattracting talent. To our committee, everybody is talented. In the words of theChinese poet, Li Bai:

All of us are talent bestowed by heavenand we must serve some useful purpose .

- Li Bai, poet, Tang Dynasty

67. International talent is internationally mobile. While Singapore is attractive,improved job opportunities elsewhere has eroded our competitiveness. We need tocreate opportunities in Singapore to attract and retain top class talent. Top talentwill not come to Singapore unless we actively create conditions that are conducivefor them to flourish and develop. Affordable housing, flexibility of educationsystem, cost and quality of living are some areas that can help make it attractive toforeigners intending to settle in Singapore.

68. We need to actively target and seek out talent. Our vision is to make Singapore a

global city of opportunity for talent. This involves having a pool of people whowant to be here, because this is the place to be. The pool of talent will be a naturalmagnet to more talent. We want Singapore to be a gathering place not just forinternational talent, but a place where our own people feel comfortable and athome, where they have the capabilities and confidence to participate fully in thelife and prosperity of the nation.

69. Attracting talent involves promoting Singapore to foreigners and removingobstacles to the entry of talent. Regulatory mechanisms can be loosened. Rulesshould be simplified and made clear. We will also have to encourage greateropenness in Singapore companies and Singaporeans towards welcoming international

talent. Singaporeans must also be prepared to accept different life-styles andpractices.

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70. We should make available information to foreigners; not just glossy touristbrochures but useful information about working and living in Singapore can be prepared and disseminated. Relocating is a family decision and we must

consciously address the needs and concerns of the family. We need to sellSingapores strengths, and how we are a safe place to bring up families, and whereforeign talent can live without fear of discrimination.

Im so happy here. I can enjoy my own Asian culture with all theWestern comforts and education for my children and grandchildrenThe

perks are nothing compared to being accepted here and being able toenjoy the Asian culture. There is stability without racism. Naturally, Iwant to be a citizen of the country I call home.

- Neila Sathyalingam, South Indian classical dancer, Director of ApsarasArts, became a citizen in 1994. Neila left her homeland, Sri Lanka,

because of civil unrest.

71. Beyond attracting talent to Singapore, we also want to selectively root some ofthem here. The granting of citizenship is a very special and carefully scrutinisedmatter. It is not just a matter of economics, but must also be balanced with mattersof the heart and societal concerns. Citizenship is given only when the foreignershows that he or she associates with our values and wants to commit his or her

destiny to Singapore. It is an act of permanent commitment, to become part ofSingapore society and rooted to our community.

72. However, that sense of belonging cannot be assumed nor does it happen naturally.We can do more to help foreigners understand Singapore, our uniqueness, diversity,traditions and values. Similarly, we should encourage locals to understand and makenewcomers feel welcomed. There are two interlocked processes involved in thetransition a foreign talent makes in becoming a Singaporean. First, acculturationwhich involves foreigners fitting into our society and feeling comfortable in it.There is mutual accommodation by both the newcomer and society and, in the

process, there is a fruitful cross-fertilisation of ideas and culture. Second, rootedness

which is a deeper sense of belonging to Singapore, of loyalty and commitment to thenation. Some specific recommendations on how to achieve rootedness will be offeredlater in the report. This will involve teaching and celebrating our history and keymoments in our national life, as well as the transmission of core values. We must putin place enough support mechanisms to promote both acculturation and rootedness.

73. While attracting and rooting foreign talent, we will also have to root local talent toSingapore. Singaporeans must have a clear sense of where we are in time and space.We need to develop a strong ethos, built on a deep understanding of our history and a

broad knowledge of how we fit into the global village. Singaporeans must alsodevelop and retain a global mindset. This will not only strengthen our sense of

national identity but also enable us to compete more ably in global markets.

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RECOMMENDATIONS

74. To attain the kind of vibrant and dynamic society we envision Singapore to be, we

must help Singaporeans to excel and compete. The best way is to bring Singaporeand Singaporeans to global standards is not to close the door as we cannot shut theworld out. Instead, we must face the challenges head-on.

The illiterate of the 21st century will not be those who cannot read andwrite, but those who cannot learn, unlearn, and relearn.

- Alvin Toffler

Helping Singaporeans Excel and Compete

(a) The L3 Fund

The Government has set up workers training programmes and funds to helpSingapore workers upgrade their skills, and enhance their employability. For instance:

the $220 million Skills Redevelopment Programme (SRP)which is accessible to workers through their companies

the NTUC Education & Training Fund (N-ETF) available toindividual union workers to help defray the cost of upgrading withouthaving to go through their companies;

the Skills Development Fund (SDF) which subsidisesSingaporeans and permanent residents training through theircompanies and self-help organisations, which includes:

the $200 million Critical Enabling Skills Training (Crest) programme which will help workers, their supervisors andmanagers develop thinking and management skills.

75. These funds are geared toward supporting both hard and soft skills training and cutacross all sectors of our economy. Together, they ensure that many of our workersare provided with adequate training opportunities to re-skill. However, thesetraining programmes and funds are geared towards specific skills, which are mainlyrelevant to the manufacturing and service industry.

76. We recommend that a Life-Long Learning (L3) Fund be created, that is notrestricted to specific industry skills, but available to all adult Singapore Citizens fortheir life-long learning. This fund can be used to acquire a useful employmentskills or knowledge.

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77. This is how we envisage the L3 Fund to be set up: Individual working adultSingapore Citizens will receive a special dividend from the Government wheneverthe economy does well. This dividend will be kept in each persons L3 Fund whichcan only be spent on approved educational and training courses, but cannot be

encashed or bequeathed. This dividend will be different from Shared OwnershipTop-Up Scheme (SOTUS) in that the L3 Fund can be used for individuals toupgrade themselves.

(b) Re-engineer Institutes and Schools of Learning

78. Institutes/Schools of Learning should be re-engineered to support life-longlearning. Currently, institutes are structured to support one-time learningexperiences, such as getting a diploma or a certificate. The institutes should re-engineer their courses and curricula to be:

(i) Modular: Free standing modules of short duration can form part ofa larger structured programme. Individuals can complete modules at their own

pace, when they are relevant to their needs or interest.

(ii) Accessible: The modules or courses should be made accessibleoutside office hours. Distance learning through the Internet could beencouraged.

(iii) Affordable: The modules should be made affordable by loweringthe cost to the individual. Just as subsidies are given for one-time learning

courses like diplomas or degrees, we propose that the Government providesome subsidies too for such life long learning modular courses so that theywould come within the reach of a larger number of the population. Togetherwith the L3 fund, this would ensure that every working adult in Singapore whowishes to pursue courses after his/her formal education, would have theopportunity and the means.

(iv) Creditable: A credit system should be set up to give recognitionand certification after accumulation of sufficient credits.

(v) Accreditation: The private sector should be involved: they have the

incentive to drive and market the courses to individuals. Private coursesallowable under the L3 fund should be properly accredited so that they arerecognised to be proper and useful courses.

(c) Transfer of Skills

79. Business, trade, professional, social and cultural organisations should make allefforts to recruit foreign talent to become members or associates of theirorganisations. These organisations should then actively facilitate the transfer ofknow-how and knowledge of the foreign talent to the Singaporean members. This

could be achieved through activities that promote interactions and globalnetworking.

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80. The Committee challenges local organisations to link up with their internationalcounterparts and aspire to have their members in leadership positions in theinternational arena. Such positions will help Singapore to have some influence oninternational organisations and become a part of some decision-making body in

setting global standards. This would be like having a seat in key United Nationsbodies or the International Maritime Organisation.

81. Attaining such positions could also help open the windows of opportunities forother Singaporeans, and help promote Singaporean talent, companies, services and

products internationally and upgrade Singapores global standing. We already havesome good examples: Dr Noeleen Heyzer who is Executive Director of UNDevelopment Fund for Women (UNIFEM), Mr Ng Ser Miang who sits on the

International Olympic Council, Mr Liew Mun Leong who has served aspresidentofthe International Standards Organisation (ISO), and Mr Abdul Halim Kader whois Secretary-General of the International Sepak Takraw Federation (ISTAF).

(d) Nurture Curiosity and Develop Critical Thinking

82. In the 21st century, Singapore must become more of a leader and less of a followerin many fields and industry. Singaporeans must correspondingly develop ourcreativity, critical thinking skills and an entrepreneurial spirit to excel and compete.The Committee commends the Ministry of Education for taking the lead in thisarea in promoting the concept of Thinking Schools and Learning Nations. Werecommend that through the revised curricula and pedagogy, schools nurturecuriosity, encourage informed debates, and build up an adventurous and risk taking

spirit amongst the students.

(e) Promote global outlook both at work and schools

83. It is important that all Singaporeans develop a good sense of our place in time andspace. We need to develop a strong ethos, built on a deep understanding of ourhistory and a broad knowledge of how we fit into global markets. This will notonly strengthen our sense of national identify, but enable us to participate more

effectively in global issues and compete more ably in global markets. A globaloutlook should be promoted and encouraged in both schools and workplace,through student exchanges, international seminars and exchanges, overseas visitsand establishment of international relationships.

Attracting Talent

84. Bringing out the best in our people and for our country means managing our talentand attracting new ones. This requires that we create the best conditions inSingapore so that the local and foreign talented will come to stay. To do this, we

must increase the opportunities here.

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85. We should adopt the following measures:

(i) Have a clear message to sell Singapore. We could sell Singapore as acentre of opportunity, as a place where things work and things happen.

Singapore can be seen as the bustling metropolis.

(ii) Boost our marketing efforts. More attention should be paid to the marketing ofSingapore Inc overseas. A central agency could be identified to spearhead thiseffort. Efforts should be made to correct wrong negative images of Singapore.Attention should also be paid to the usefulness of information provided. Forinstance, Singapore Tourism Board (STB) packages very good tourist

brochures, but these are not useful for a foreigner considering whether to workin Singapore. More practical information about living and working here should

be made available through mediums like interactive web sites. Such packagedinformation should include tips not just for the foreign talent but also the

family, as decisions to relocate are made collectively. We could also make useof Changi Airport given that 25 million passengers flow through annually and SIA to market the opportunities available for foreign talent to work orinvest in Singapore.

(iii) Expand our facilitation services to new talent and their families. Transitionalhelp can be provided for foreign talent and their families so that they can adaptto our local conditions. Programmes could be organised to help them adapt toand assimilate with our lifestyle, eg. Singapore history and culture. Packagesshould also be created to sell Singapore as best home, and attract them tosink roots here.

(iv) Application procedures and process should also be as transparent and assimple as possible. Immigration should revert to applicants as soon as possibleand within a fixed and known timeframe so that there is greater certainty.

(v) Both business and governmentshould be involved in promoting Singapore toforeign talent.

(vi) We also need to change the mindset of Singaporeans towards foreign talent tobe more open to, accepting of, and welcoming talent. We need to have a bigheart and recognise that talent contribute to and benefit our country. This effort

would need to involve all levels of society, from the individual to the family tothe community to the nation. As a start, our schools and universities could,through immersion or exchange programmes, create greater global awareness.They should also provide more opportunities for global exposure and inculcatea global mindset amongst the younger Singaporeans. In relation to this, theCommittee fully endorses the concept of Thinking Schools, Learning Nationenvisaged by the Ministry of Education.

(vii) A committee could be formed to help expatriate families integrate into oursociety, such as provide assistance to settle down, find places in local schoolsfor their children. We should encourage foreigners to mix socially with locals

and involve them in cultural exchange programmes and social services (eg.civil defence exercises, blood donation drives). Residents Committee can also

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help foreigners feel accepted in the community by including them incommunity activities.

Integrating and Managing Talent

86. The current system of controls is adequate to maintain the quality of talent flows.However, regular reviews and transparency in criteria used to admit foreign talentshould be maintained.

87. In managing this policy of attracting talent, we also need to address the followingissues:

(i) We need to address the issue of inequity concerning National Service.Permanent residents should not be forced to become citizens. However,

second-generation PRs who avoid NS by giving up their PR status, andsubsequently return to live and work in Singapore after completing theirtertiary education should not be allowed to circumvent our NS policy. Suchloopholes should be plugged.

(ii) Companies who hire active NS men should be recognised for theircontributions towards nationaldefence. Tax rebates equal to the rank pay of

NS men who are called up for active national service could be offered toemployers. Self-employed NS men should also enjoy the same tax exemption.

(iii) We should strengthen the links with Singaporeans living abroad, keep in

contact and help them re-integrate into our society when they return. Thisshould be a broad strategy that involves all sectors of society working together:

public, private and people. A small gesture would be setting aside a smallnumber of NDP tickets for returning Singaporeans so they can participate andrevive their sense of belonging to Singapore.

(iv) Managing local and foreign talent spans across a number of governmentagencies and ministries. A central steering committee on Managing Talentcould be formed, to co-ordinate and direct our strategies and actions. Ourcommittee welcomes the governments decision to form the Singapore TalentRecruitment (STAR) Committee, headed by BG George Yeo.

88. Ultimately, it is not enough to tolerate foreigners because they are of use toSingapore. We must welcome them, make them feel at home and that they belonghere. To be welcoming to foreigners requires an open mind and a big heart. Weneed to remind ourselves that almost all Singaporeans are either immigrants ordescendants of immigrants. Shutting ourselves off will make Singapore very insularindeed. Singapore must retain an open and hospitable attitude. The challenge is to

build an inclusive Singapore, where citizens feel at home and a part of the nation,and confident in welcoming foreign residents to be a part of our society, to livewith us, to benefit from our society, and also contribute to our continued growthand prosperity.

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But we must not discriminate against foreigners because they are foreigners. If Singapore is reserved for Singaporeans alone, we wouldhave a very small Singapore.

- BG George Yeo, Minister for Information and the Arts, Launch ofContact Singapore in Sydney, July 1997

EVERYONE MATTERS

89. We return to the vision we painted at the beginning of this report. At the dawn ofthe 21st century, we want to make Singapore a centre of opportunity, like the

boundless sea, receiving, enriched and enlarged by the ideas and contributions fromsurrounding brooks. We must keep our minds open and our hearts big. We will be

a society where everyone matters, a society where everyone is valued and rewardedfor his or her contributions. We should be a society where everyone is recognisedfor his or her ability, and which helps individuals realise their full potential.

In the end, it comes down to people, both locals and the non-locals whohave decided to call Singapore home, building the kind of society we wantour children to inherit.

- Tong Chee Kiong, University lecturer

The success or failure of our efforts will be decided by eachSingaporeans willingness to take responsibility, for the future we want tocreate. The feeling of being Singaporean comes from being able to makechoices about the kind of community we want to live in.

- Melissa Aratani Kwee, Co-director for Project Access

90. Citizenship is about commitment and commitment is based on participation. Therecan be no citizenship without participation from everyone. From a fishing village tomodern city, Singapores prosperity has been founded upon talent and theircommitment to this country. Many of our forefathers were foreign talent who cameto Singapore. Braving storms, they sailed down the Southern Seas to Temaseklooking for a better life. They worked to build a better Singapore. While some went

back, others chose to call Singapore home. But, whatever they chose, they came toSingapore because it offered them something in exchange for their skills, hard workand talent. Singapore prospered because they came and contributed.

91. For Singapore to remain competitive and prosperous, we must be like the sea ,

receiving a continual flow of talent. We also need to develop and maximise thetalents and abilities of all Singaporeans. No vision of Singapore can be sustained

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unless we can keep and develop our local talent. There is no contradiction betweenattracting foreign talent and nurturing local talent. They are not two horns lockedforever in battle but two wings that will propel a thriving Singapore. Foreign talent isnot them and locals us. Instead, we are the same team competing together

against the world. Everyone matters to Singapores success.

For the want of a nail,A shoe was lost.For the want of a shoe,A horse was lost.For the want of a horse,A soldier was lost.For the want of a soldier,A war was lost.For the want of a war,A kingdom was lost.And all for the want of a horse shoe nail.

92. This report attempts to capture some of the key concerns and recommendations thatemerged from our committees meetings, deliberations with the public and the

broad consensus which eventually emerged. Our views are by no meanscomprehensive; neither do we claim that our recommendations are the only rightones. But we have put them forth in the belief that these are aspects of the societywe want to create and the dream we have. Our forefathers too came to Singapore

with their dreams. They came, stayed and were transformed into Singaporeans.

93. This is our unfolding Singapore story, a global centre of opportunity.Lets join our hands to realise our vision for Singapore.

. . . . .

foreign talent dilemma

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