News: The Straits Times -  11 December 2009


JAPANESE CHAMBER OF COMMERCE 40TH ANNIVERSARY
Immigrants a solution to ageing population: MM
He refers to S'pore's experience, urges 'radical rethink' of Japan's reservation towards foreigners
By Jeremy Au Yong, Political Correspondent


(Picture: Mr Yoshiyuki Nogi, president of the Japanese Chamber of Commerce and Industry (JCCI), shaking hands with Minister Mentor Lee Kuan Yew , applauded by (from left) JCCI vice-president Kosuke Nakamura of Mizuho Corporate Bank (Singapore branch); JCCI vice-president Tetsuhiko Yoshikawa of Ajinomoto (Singapore); former JCCI president Yasuhiko Kitagawa from Mitsubishi Corporation; Ambassador of Japan Makoto Yamanaka; and JCCI councillors Takahiko Kato, from Sumitomo Mitsui Banking Corporation; and Kiyofumi Kusaka from NEC Asia. MM Lee had earlier addressed more than 1,000 Japanese businessmen and guests at a dialogue at the Japanese Chamber of Commerce and Industry Singapore’s 40th anniversary celebrations. - ST Photo)


LIKE Singapore, Japan is facing problems of a low birth rate and a rapidly ageing population.

So when Minister Mentor Lee Kuan Yew was asked yesterday what Japan should do about it, he referred to Singapore's solution: be more open to immigration.

Addressing more than 1,000 Japanese businessmen and guests at a dialogue at the Japanese Chamber of Commerce and Industry Singapore's 40th anniversary celebrations, he shared the Republic's experience while urging a 'radical rethink' of Japan's longstanding reservation towards foreigners.

'There is a reluctance on the part of both leaders and people to dilute or to complicate the society by bringing in people of different cultures, different races,' he said.

'It's not just bloodlines but also language, culture, the way you communicate with each other. I think Japan faces a difficult choice here.'

If Japan continued with this policy, then it would end up with an ageing population.

'An ageing population does not consume much. Old people don't change cars every year or television sets or change golf clubs. So your consumer market is down and you've got to depend more and more on exports.'

Even then, he said such exports depended on the domestic market having first tried out the product.

'So it's a vicious circle. If you do not succeed in Japan in trying out your product, how do you go abroad to test it?' he asked.

In some ways, Japan's situation was more urgent than Singapore's. Mr Lee cited a particularly sobering statistic: By 2050, Japan is expected to have only 1.2 working individuals supporting every person aged over 65 - down from 3.7 now.

'How do they do that? They have to work the economy. They also have to look after you as nurses, paramedics and doctors and push wheelchairs. The whole thing will just become a terrible problem,' he said.

Mr Lee noted that Prime Minister Yukio Hatoyama said he wanted to make Japan a more attractive place for people to come to live and work in, and to encourage Japanese women to have more children. Bumping up flagging birth rates was one response to an ageing population, but Singapore's experience has shown it is 'easier to say than to do'.

Japan's total fertility rate is 1.39 - only marginally better than Singapore's 1.29, and far off the required replacement rate of 2.1. Various attempts by the Singapore Government over the years to boost the number of births have resulted in only modest gains.

Mr Lee acknowledged that changing mindsets could be difficult, but suggested that Japanese society be gradually educated to understand the need for foreigners.

He is aware of just how sensitive the foreigner versus local issue can be. Even in Singapore, where the population includes many immigrants, local people have found integrating the newcomers difficult.

'Because of the large influx over the last five to seven years, Singaporeans say, 'Look, I go into the MRT, I see so many new faces. I go into the buses, I see so many new strange faces. Let's go slow.''

One example is the recently opened foreign worker dormitory in Serangoon Gardens. 'When we had to put work-permit holders in Serangoon estate, there was tremendous unhappiness. But in fact, we've fenced it off, made a different entrance, and I think it will work out. But nevertheless there is a certain amount of discomfort,' he said.

He added: 'Therefore, I understand the Japanese situation. But I think Japan has to make a choice. I do not believe the Japanese women can suddenly bring up the population in Japan.

'It's not possible. Let's assume they bear two children each instead of 1.38 or 1.39. You're going to wait for 20 years. By that time, the ageing problem will be worse in Japan. Your economy will shrink.'

While he directed most of his comments to the predominantly Japanese audience, he also had a message for Singaporeans on the issue of immigrants. He pointed out that permanent residents and new citizens make up only a small number of the foreigners here. The majority are here temporarily - such as students and work-permit holders.

He also reiterated just how important the immigrants were: 'Supposing we remove 1.2 million of our foreigners, we'll find suddenly, all the restaurants, theatres, everything is one-third empty. Some will close shop.

'We tell people, 'You don't want them? What will happen to your job?' The companies won't come in, they will be short of people. So like it or not, that's the way we have to go.'

- end of ST article