My startup was actually incubated by the writer of that first article you linked. I agree with his points.
I fear the truth is that it's simply hard to hire good talent from overseas when you have limited funds anyway. This goes back to the larger issues of limited investor risk appetite and difficult market conditions/access.
Personally I've seen fellow startups try to hire foreign developers, and successfully get approvals from the government (yup it's troublesome), and then the developers decide not to come to Singapore after all, or come but don't perform to par. You can't mitigates risks like these without significant cash in the bank (which only the top-funded startups have).
My chosen alternative was to hire remotely and not muck around with approval from government, which also meant benefiting from lower market salaries in cheaper countries. It's taken a lot of filtering of employees, but things are going fine so far. This approach won't work for everybody, of course.
All that said, I do think the core issue holding Singapore startups back is the market size/access thing. It leads to most of the other issues, including startups' inability to pay for skilled developers. Looser government regulations on employment by startups would help somewhat, but it might not change the outcome significantly.