Experiences with Foreign Workers in Singapore and Malaysia: What are the Lessons for Japan’s Labor Markets? Eric D. Ramstetter Asian Growth Research Institute and Kyushu University, Japan Working Paper Series Vol. 2016-06 March 2016 The views expressed in this publication are those of the author(s) and do not necessarily reflect those of the Institute. No part of this article may be used reproduced in any manner whatsoever without written permission except in the case of brief quotations embodied in articles and reviews. For information, please write to the Institute. Asian Growth Research Institute Experiences with Foreign Workers in Singapore and Malaysia: What are the Lessons for Japan’s Labor Markets? Eric D. Ramstetter (
[email protected]) Asian Growth Research Institute and Kyushu University March 2016 Abstract Singapore and Malaysia have a long history of relying heavily on foreign, immigrant workers in both high-skilled and low-skilled occupations. Ancestors of large portions of the local population in both countries were also immigrants. Correspondingly, economic policies have been designed to manage high levels of migration and foreign workers. In contrast, Japan limited both immigration and foreign workers quite strictly through the 1980s. Since the 1990s, however, the ratio of the stock of net inward immigrants to total population has grown much more rapidly in Japan than in Singapore or Malaysia, largely because the rapidly aging population and changes in worker preferences have resulted in strong demand for immigrant labor. Since the 1990s, Japanese policies have actively sought to entice highly skilled foreign workers and students to work and/or study in Japan.