By LEE U-WEN

Among those who lost their jobs in the first half of this year, many have been foreign workers, rather than Singaporeans. And among citizens and permanent residents, there were net job gains in the first six months of 2009, even though the economy shrank 6.5 per cent during that period, Minister Mentor Lee Kuan Yew said last night.

Speaking to his constituents and grassroots leaders at the Tanjong Pagar National Day celebration dinner, Mr Lee drove home the point that Singapore needs foreign workers so that the country can grow faster when conditions are favourable, and to buffer the shock when conditions turn.

In his speech, Mr Lee said 70 per cent of all foreigners in Singapore are here temporarily on renewable long-term passes, while the remainder are PRs.

'Had we not had the foreign workers, more Singaporeans would have lost their jobs,' he said.

'We need immigrants to make up for the children we are not having. This is a hard fact of life. Between the ages of 25 and 40, over 30 per cent remain unmarried,' said Mr Lee at the Tanjong Pagar Community Club. 'Those who marry are not replacing themselves.'

Singapore's current total fertility rate is 1.28, even lower than that of Japan (1.37), which too is facing an ageing and declining population. Latest figures show that in Singapore, Malays have the highest average of 1.91 children; Indians 1.19; and Chinese the lowest with just 1.14 children.

'If we do not have educated Malaysians, China Chinese, India Indians and others from the region, our economy will decline. Our labour force will shrink,' said Mr Lee.

'Without immigration, the ageing problem will be too heavy a burden for our young. Immigrants who can be integrated without upsetting the racial balance are in our interest.'

Turning to his views on the economy, which is beginning to show signs of a recovery, he urged Singaporeans to take a 'long-term view of our position' and not be short-sighted.

'We are in a strong position today, our stability and efficiency is known throughout the world,' he said.

Citing one recent example of the overall level of investor confidence in the Republic, Mr Lee recalled how US oil giant ExxonMobil decided to pump in US$4.5 billion to build a steam cracker project on Jurong Island in 2007. The plant is scheduled to be completed in 2011.

'Their CEO Rex Tillerson believed demand would be there. But his board of directors were so surprised they were unwilling to believe this,' said Mr Lee.

'So he took an aeroplane to bring them all here, to meet with the prime minister and I. We spent one-and-a-half hours discussing the future of this region and Singapore's place. We took them to Jurong Island, and after that they agreed.'

'US$4.5 billion is a vote of confidence in our future. Other MNCs will notice that and I'm quite sure when the financial crisis is over, we are going to get many investments,' said Mr Lee, adding that Singapore has many free trade deals with countries such as the US, Japan, India and China.

'If we cannot grow, then there must be something wrong with us,' he said.

This article was first published in The Business Times.