1. It is not about downsizing

The aim is to do more with the same people, not do the same with fewer people. Cheaper does not mean layoffs, cutting wages and benefits, employing more foreign workers, or compromising workplace safety.

It is about winning more investments, seizing a bigger share of the market and growing the economy, so that companies make more profit and workers earn higher wages.

2. It is not only for manufacturing

It concerns all sectors of the economy, including services, because they are inter-related.

For example, a businessman who is deciding whether to locate his disk drive plant here will consider not only production costs, but also transport costs. When he visits Singapore, he needs to stay in a hotel, eat at a restaurant and take a flight at the airport.

3. It is not only for the young and the educated

Older and less-educated workers will also have to upgrade their skills and learn new ones, so that no one is left behind.

4. It is not only for local workers

The economy would be smaller and less competitive without foreign workers' contributions. But the labour movement wants foreign workers who are able to upgrade their skills.

This article was first published in The Straits Times.