Singapore Prime Minister Lee Hsien Loong has said he will tighten rules for foreigners moving to the country to work, after a backlash over the cost of living led to record opposition gains in the May elections, according to Bloomberg.

The government will raise salary thresholds and require better educational qualifications for some foreign workers, Lee said in a televised speech late yesterday, stressing the nation needs to ensure policy adjustments do not hurt Singapore’s attractiveness to investors.

In the annual National Day rally speech, the first major policy address since the election, he added the move will inevitably mean slower growth. 

“We have to accept that if we bring down the number of foreigners, slow the inflow, it means slower growth,” Lee said. “Companies will come here not so vigorously or they may choose to expand elsewhere and we will have less resources to improve our lives.”