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Business Times
21-04-2025
- Business
- Business Times
Staying open is how Singapore can compete, grow and stay relevant
As Singapore grapples with a shrinking local workforce and rising business demands, how can we remain open to foreigners while addressing concerns over job security, social integration and infrastructure strain? The need for foreign talent to support our economic growth is an undisputed hard truth, made more acute by our declining birth rates and rapidly ageing population. In 2014, there were six working-age residents supporting each elderly resident aged 65 and above. By 2024, this fell to 3.5. Including foreign workers raises this support ratio to 5.2, highlighting their essential role in augmenting the local workforce and keeping our economy going. A delicate act of balancing concerns Singaporeans are pragmatic and understand the need to remain open to foreigners at all levels – work permit holders for blue-collar jobs where we have insufficient locals, and Employment Pass (EP) and S Pass holders to plug skills gaps and supply shortages, to create more opportunities and enhance our economic dynamism. Singaporeans' concerns centre around three key issues: fear that growth in EP and S Pass holders displaces local jobseekers because of discrimination and lower wages; infrastructure strain, rising prices and social disamenities caused by a growing foreign workforce; and dilution of the 'Singapore identity' at both at the workplace and community. On the flip side, businesses also have concerns on foreign manpower issues. In the Singapore Business Federation's (SBF) National Business Survey, availability and increasing cost of hiring foreigners ranked among the top three challenges limiting business growth. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Without adequate foreign talent, businesses face challenges in meeting demand, innovating and scaling, which can hinder their ability to compete globally. As a result, they may be forced to relocate or limit their expansion, ultimately impacting local employment, as the shortage of foreign workers also affects job opportunities for local workers. Optimising the work permit holder population Having said that, given the strong economic rebound from Covid, the overall foreign workforce population in Singapore has grown – while the number S Pass holders decreased by 11 per cent, EP holders have increased modestly by 4 per cent and work permit holders by a much larger 17 per cent. We cannot infinitely increase work permit holder numbers, which are at an all-time high due to infrastructure limitations. Rising dormitory costs, such as from the impending closure of two worker dormitories, underscore the pressure on our infrastructure. Dorm beds are now costing upwards of S$460 per month (as of H2 2024). These translate to increased operating costs, which eventually flow through to higher costs of services and reduced competitiveness for sectors dependent on foreign labour, such as construction, marine, manufacturing and services. We have two choices: businesses must bring in higher-skilled workers and automate to reduce foreign manpower needs, or we must scale back output to limit foreign manpower demand – potentially slowing down construction volume, relocating manufacturing activities that are labour-intensive and accepting fewer service staff. Seen in this light, the recent enhancements to the framework to enable employers to hire and retain higher-quality work permit holders announced at the Ministry of Manpower (MOM) Committee of Supply Debate will allow businesses continued access in a calibrated manner. These include the removal of maximum employment period restrictions and the raising of the maximum employment age for work permit holders from non-traditional sources (NTS); the expansion of NTS to include Laos, Cambodia and Bhutan, as well as the NTS Occupation List to hire skilled workers in more non-PMET (professional, managerial, executive and technician) occupations; and the extension of the Manpower for Strategic Economic Priorities support period from two to three years, to allow increased transitional work permit quotas. Many of these enhancements were recommendations from the Alliance for Action on Business Competitiveness. However, given our limits in importing work permit holders in large numbers, we can do more to utilise the existing pool by allowing greater flexibility in their cross-deployment across sectors and between firms with strategic contractual relationships. Take for example a multidisciplinary engineering firm that operates across diverse industries employing skilled work permit holders such as electricians and fitters. Allowing these workers to be flexibly deployed would optimise workforce allocation and reduce the need to hire additional workers for short-term needs. As highlighted by Prime Minister Lawrence Wong at the SBF Singapore Budget Symposium, our focus should be on better retaining and utilising our pool of skilled work permit holders, rather than simply relaxing quotas, which could lead to an oversupply of workers and strain Singapore's infrastructure. With appropriate safeguards, cross-deployment could complement recent work permit holder framework enhancements. Reducing discrimination and identity dilution At the S Pass and EP level, Singaporeans' concerns on potential discrimination and the dilution of the Singaporean identity are reasonable. Hence, the landmark Workplace Fairness Bill, which was recently passed in Parliament, is a significant move to protect Singaporeans from discrimination. This marks a paradigm shift from the current framework of using regulatory guidelines (namely, the Tripartite Guidelines on Fair Employment Practices), which does not have the force of law and limited enforcement levers (primarily the curtailment of work pass privileges for the hiring of foreign employees). Expected to take effect in 2026/2027, it will require businesses to ensure that their employment policies comply with the fair employment guidelines, and train hiring managers to assess skills and experience objectively to foster a fairer work environment, to avoid facing potential private actions by individual employees and/or enforcement action by MOM. Businesses can also do more to encourage workplace integration. Initiatives like the Workplace Diversity Programme by and the Institute of Policy Studies, alongside corporate integration efforts such as DBS' Integration Playbook and EY's Cultural Agility Toolkit, are exemplary for building a more inclusive workplace culture. The set-up of the Alliance for Action on the Integration of Foreign Professionals, led by the SBF, Singapore National Employers Federation and Ministry of Culture, Community and Youth, is therefore timely in raising the importance of this issue and developing practical solutions, to foster meaningful interactions and friendships between locals and foreigners at the workplace. We need to work harder to preserve Singapore's standing as a country that can attract skilled talent, reflected in our second-place ranking in the IMD World Talent Ranking 2024 and Insead Global Talent Competitive Index in 2023. In an increasingly inward-looking global environment, strengthening social cohesion through integration and addressing discriminatory practices becomes even more crucial to increase the absorptive capacity of Singapore for skilled talent. Optimising beyond Singapore We have thus far been trying to optimise our manpower within Singapore shores. The Johor-Singapore Special Economic Zone (JS-SEZ) offers a breakthrough to overcome our land and manpower constraints. With an integrated economic region with Johor, Singapore can access a larger, diverse workforce while easing infrastructure pressures. Partnering our Malaysian counterparts to locate relatively more labour-intensive segments of high value-added manufacturing operations in the JS-SEZ will reduce pressure on our physical and social infrastructure. Having the seamless movement of foreign workers living in the JS-SEZ but working in Singapore would achieve the same purpose. With the Johor Bahru–Singapore Rapid Transit System Link turning operational by late 2026, capable of moving 10,000 passengers hourly with streamlined immigration, our combined workforce could feasibly live and commute to work within the entire JS-SEZ. Resisting the call of nativism Singapore has so far been able to help locals secure good jobs while keeping businesses competitive. The dual-pronged approach – to help our locals compete strongly and fairly through heavy investment in skills development, and ensuring a level playing field through fair practices while allowing companies to have access to a complementary foreign workforce through a system of qualifying salaries, quotas and levies – have worked. There is always room to improve, but we must preserve this delicate equilibrium. With the current wave of nativism sweeping across many countries, let Singapore shine as an example of how a highly skilled local workforce can thrive alongside a complementary foreign workforce, working together to expand the economic potential of the Republic. The writer is CEO of the Singapore Business Federation
Yahoo
07-03-2025
- Business
- Yahoo
Government acknowledges accountability failures in NRIC unmasking saga; MOM announces major changes to foreign worker rules: Singapore live news
Hello to all our readers, Yahoo Singapore will be bringing you live news updates today. The editorial team will be curating the latest must-know local and international news. Top of the news, the Singapore government has acknowledged accountability failures in the NRIC unmasking saga, promising corrective actions and fair consequences for those involved. Minister Josephine Teo and ACRA's Chief Executive issued apologies for the distress caused by the incident, which exposed sensitive personal data on the Bizfile portal. The government pledged to improve communication and data protection, with a public consultation planned for 2025. Meanwhile, the Ministry of Manpower (MOM) has announced significant changes to work permit regulations that will take effect in July 2025. These include the removal of the 14-26-year cap on foreign worker employment, allowing skilled migrant workers to stay longer in the country. Additionally, the qualifying salary for S Pass holders will increase, reaching up to $4,800 for candidates in their mid-40s, ensuring competitive wages aligned with local industry standards. The new policy also expands the list of non-traditional worker sources to include Bhutan, Cambodia, and Laos. These updates aim to diversify Singapore's labour pool and enhance its economic competitiveness. Read more in our live blog below, including the latest local and international news and updates. Singapore's Ministry of Manpower (MOM) has announced pivotal changes to work permit regulations, extending employment durations and enhancing the S Pass salary thresholds. These adjustments, effective from July 2025, aim to strengthen the nation's labour market, support business growth, and retain skilled foreign workers amid a dynamic economic landscape. Starting 1 July, Singapore will no longer impose a hard cap on the duration that foreign work permit holders can stay in the country. Previously, foreign workers could remain for 14 to 26 years, depending on their industry or nationality. By lifting this limit, Singapore hopes to retain experienced workers, especially those in their prime working years, offering companies a more stable workforce. Additionally, the maximum employment age for work permit holders will rise from 60 to 63 years, aligning with local retirement norms. In an effort to diversify its labour force, Singapore is expanding the list of eligible countries for non-traditional foreign workers. From June 2025, workers from Bhutan, Cambodia, and Laos will be able to apply for work permits. The government is also increasing the scope of eligible occupations, such as heavy vehicle drivers and cooks, allowing a more diverse group of workers to fill these roles from September 2025. Meanwhile, MOM is raising the qualifying salary for S Pass holders. From September 2025, the minimum salary will increase from $3,150 to $3,300 across most sectors, with financial services setting a higher benchmark of $3,800. This hike aims to ensure that the salaries of foreign workers are aligned with local wage standards, promoting a fair and competitive labour market. Furthermore, the salary will increase progressively based on the worker's age, with workers in their mid-40s potentially earning up to $4,800. In addition to these changes, Singapore is bolstering the M-SEP scheme, which supports businesses in hiring foreign workers aligned with the nation's economic priorities. Starting May 2025, businesses can retain foreign workers for up to three years under the M-SEP scheme, up from the previous two-year limit. This initiative will help businesses tap into foreign expertise while fostering local talent. The Singapore government has acknowledged significant accountability failures surrounding the NRIC unmasking saga, which triggered public concern over the exposure of sensitive personal data. Senior Minister Teo Chee Hean emphasised the importance of holding public servants accountable but cautioned against excessive punishment, which could undermine public sector innovation. He stressed that while accountability is crucial, the government must strike a balance between holding individuals responsible and protecting the integrity of the public service. In response to mounting scrutiny in Parliament, government officials have promised corrective actions to prevent similar incidents from occurring in the future. While MPs expressed concern over the potential repercussions for civil servants, fearing a chilling effect on future decision-making, the government has assured that consequences will be measured. This includes retraining and counselling for those involved, ensuring that staff members learn from their mistakes while maintaining public trust in the system. The incident, which came to light in December 2024, was caused by lapses in communication and coordination between the Accounting and Corporate Regulatory Authority (ACRA) and the Ministry of Digital Development and Information (MDDI). The Bizfile platform, intended to facilitate business registrations, inadvertently exposed full National Registration Identity Card (NRIC) numbers of business affiliates, sparking concerns about privacy breaches and the potential for identity theft. Minister for Digital Development and Information Josephine Teo and ACRA's Chief Executive Chia-Tern Huey Min offered apologies for the distress caused to the public. They acknowledged that the error stemmed from a misunderstanding regarding the government's plan to unmask NRIC numbers. Despite the apology, the government continues to monitor the situation closely and will consult the public in 2025 on new measures to better protect personal data. Read on SM Teo's statement on the NRIC unmasking saga here. Singapore's Ministry of Manpower (MOM) has announced pivotal changes to work permit regulations, extending employment durations and enhancing the S Pass salary thresholds. These adjustments, effective from July 2025, aim to strengthen the nation's labour market, support business growth, and retain skilled foreign workers amid a dynamic economic landscape. Starting 1 July, Singapore will no longer impose a hard cap on the duration that foreign work permit holders can stay in the country. Previously, foreign workers could remain for 14 to 26 years, depending on their industry or nationality. By lifting this limit, Singapore hopes to retain experienced workers, especially those in their prime working years, offering companies a more stable workforce. Additionally, the maximum employment age for work permit holders will rise from 60 to 63 years, aligning with local retirement norms. In an effort to diversify its labour force, Singapore is expanding the list of eligible countries for non-traditional foreign workers. From June 2025, workers from Bhutan, Cambodia, and Laos will be able to apply for work permits. The government is also increasing the scope of eligible occupations, such as heavy vehicle drivers and cooks, allowing a more diverse group of workers to fill these roles from September 2025. Meanwhile, MOM is raising the qualifying salary for S Pass holders. From September 2025, the minimum salary will increase from $3,150 to $3,300 across most sectors, with financial services setting a higher benchmark of $3,800. This hike aims to ensure that the salaries of foreign workers are aligned with local wage standards, promoting a fair and competitive labour market. Furthermore, the salary will increase progressively based on the worker's age, with workers in their mid-40s potentially earning up to $4,800. In addition to these changes, Singapore is bolstering the M-SEP scheme, which supports businesses in hiring foreign workers aligned with the nation's economic priorities. Starting May 2025, businesses can retain foreign workers for up to three years under the M-SEP scheme, up from the previous two-year limit. This initiative will help businesses tap into foreign expertise while fostering local talent. The Singapore government has acknowledged significant accountability failures surrounding the NRIC unmasking saga, which triggered public concern over the exposure of sensitive personal data. Senior Minister Teo Chee Hean emphasised the importance of holding public servants accountable but cautioned against excessive punishment, which could undermine public sector innovation. He stressed that while accountability is crucial, the government must strike a balance between holding individuals responsible and protecting the integrity of the public service. In response to mounting scrutiny in Parliament, government officials have promised corrective actions to prevent similar incidents from occurring in the future. While MPs expressed concern over the potential repercussions for civil servants, fearing a chilling effect on future decision-making, the government has assured that consequences will be measured. This includes retraining and counselling for those involved, ensuring that staff members learn from their mistakes while maintaining public trust in the system. The incident, which came to light in December 2024, was caused by lapses in communication and coordination between the Accounting and Corporate Regulatory Authority (ACRA) and the Ministry of Digital Development and Information (MDDI). The Bizfile platform, intended to facilitate business registrations, inadvertently exposed full National Registration Identity Card (NRIC) numbers of business affiliates, sparking concerns about privacy breaches and the potential for identity theft. Minister for Digital Development and Information Josephine Teo and ACRA's Chief Executive Chia-Tern Huey Min offered apologies for the distress caused to the public. They acknowledged that the error stemmed from a misunderstanding regarding the government's plan to unmask NRIC numbers. Despite the apology, the government continues to monitor the situation closely and will consult the public in 2025 on new measures to better protect personal data. Read on SM Teo's statement on the NRIC unmasking saga here.
