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Indian companies deputing employees from India to work in Singapore will need to have a relook at their salary structures.

"We will continue to treat foreign workers fairly, but we expect them to obey our laws and social norms," Lee said.

"But we still need foreign workers to keep our economy running and to build critical infrastructure for Singaporeans," added Lee.

The paper pointed out that Singapore's total fertility rate (TFR) has fallen below the replacement level of 2.1 in the past 30 years.

Singaporeans have expressed concern about increasing competition for jobs from foreigners, especially Asians including Indians.