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The influx of foreign workers had always been economical in nature.

Japan did import in quite a number of foriegn worker yearly but with very strict controls. Areas of work is restricted and their contract terms sledom last very long. As such they are at best a transient population and help to reduce cost of manufacturing.

Singapore is in current condition because of the Government's mistake in controlling the influx of foreign workers. It is too late at this stage to shut of the supply. Singapore had been fueling growth for almost a decade based on this influx of foreign workers, to shut it down now is to commit suicide.

The government realises this mistake. They cannot announce it publicly to its full extent as it will create ann unbalance. Hence they are doing it quietly. Stage 1, to enocurage companies to use more high tech equipment and processes to lower dependency on manpower. Stage 2, Announce to public their intent to slowly close of the tap. I expect them to continue to close of the tap as much as possible since growth potential had been achieved.

The problem is that there are people lobbying with the government for more people. And these lobbying people are often the rich towkays that wanted cheap labour. Instead of spending money to train and keep people, these rich towkays demand from government either directly or subtely. So there is always to sides in which the government have to listen to. The rich and powerful versus the noisy masses.

If you stay in high level management long enough, you will know that all sort of excuses are being used to justify their claims and actions. What LKY is doing is probably one of these excuses. So he knows, he just won't admit to it ( pride ) and hence tries to justify it :)

By now if anyone doesn't know of Japanese nationalism, they are delusional. "bo kiu". But for LKY to suggest that to the Japanese shows political intent.

In many countries Nationalization is their top priority, ours look more like a de-Nationalization in term of ill preparation, loosely coordinated and poor management & near-zero control from all agencies involved.