Doors to be opened wider
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Higher foreign worker quotas will give businesses more breathing space from Jan
Teo Xuanwei
[email protected]
THE economy is booming and unemployment has sunk to a 10-year record low – but for businesses here, it has been a tough struggle to stave off the effects of a tight labour market and rising costs.
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Which is why the Government has decided, for their sake, to open the doors to foreign labour a little wider.
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Businesses across the spectrum — from primary industries like construction and manufacturing, to the processes and services sectors — will benefit from the relaxed hiring quotas of foreigners from January.
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And it is not just a matter of adding numbers, but also quality.
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Across all sectors, the new rules will allow companies to get foreigners to fill mid-level skilled jobs like technicians. This group can now make up 25 per cent — up from 15 per cent — of their foreign workforce.
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The Personalised Employment Pass (PEP) scheme that was launched earlier this year will see changes from March next year too. Granted on the strength of a person's merits instead of being tied to a specific employer, the pass lets holders remain in Singapore for up to six months between jobs.
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To attract more global talent, the pass will soon be granted to skilled foreign professionals whose last drawn fixed monthly salary overseas is at least $7,000.
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Currently, they have to be working in Singapore for at least two years and drawing at least $2,500 monthly to qualify for the PEP. The changes will grant the PEP to those who meet the new salary threshold and who are either abroad or already here, without the two-year qualifying period.
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Said Manpower Minister Dr Ng Eng Hen, who announced the measures last night: "To succeed as an economy built on high innovation and value added-ness, relying on talent within Singapore alone will not suffice. Size is against us.
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"We need to augment our workforce in areas where there are insufficient numbers of skills with foreign workers."
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Pointing to the "robust growth in Asia's energy markets and global demand for petrochemicals", the ministry will allow employers in the construction and process sector to have seven foreign workers for each local, up from the current five-to-one ratio.
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In the marine sector, employers will be able to hire five foreign workers for each local worker, instead of three-for-one.
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With the manufacturing and services sector "expected to enjoy continued strong employment growth", the ministry will also allow foreigners to make up a bigger proportion of their workforce — 65 per cent for manufacturers and 50 per cent for services-related companies, such as hotels and retailers. This is an increase of five percentage points from the current quotas.
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Said Dr Ng: "These measures will enable businesses to have access to the manpower they need to support their growth, which in turn will create more jobs for Singaporeans."
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Industry players and analysts Today spoke to praised the measures, although there were some cautionary caveats.
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Madam Halimah Yacob, who is in the Government Parliamentary Committee (GPC) for manpower, said that while the measures are a "necessity from an economic viewpoint", the Government has to ensure employers do not look at foreign workers as an "easy first option". She stressed the importance of creating job opportunities for older workers and women employees.
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MP Denise Phua, also on the GPC, said "vulnerable" employees — those who are older and lower-skilled — had to be taken care of, and there would be "social and political costs if the situation is not managed proactively".
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Mdm Halimah was also concerned about the "significant increase" in the hiring quota for mid-level skilled workers.
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She urged the ministry to "continue to monitor the situation so that it does not affect our graduates and polytechnic school leavers".
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On the whole, however, economist Song Seng Wun said the measures were a timely "step in the right direction", with businesses facing "stronger pressures on wages, rentals and other business costs".
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Allowing companies more access to foreign labour ensures they do not get "priced out of the global economy", he added, and gives them "a bit of breathing space".
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He added: "It is a holistic approach to tackling strong demand-and-supply imbalances in the labour market."
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Prof Chew Soon Beng, an economist from Nanyang Technological University, said the demand for more workers is natural, given the increase in Singapore's GDP growth.
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Also, with an already tight labour market, the increase in foreign workers may lead to "more business opportunities, and thus more jobs".
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A spokesperson for the Singapore Manufacturers' Federation said: "These measures will help in meeting the immediate shortage of labour and support manufacturing growth in Singapore."
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Mr Simon Lee, the executive director of the Singapore Contractors Association, said the changes would "help to maintain the momentum of construction work here".
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Still, Mr Lee noted, there were unresolved issues: Construction companies may get access to more labourers, but they are having problems recruiting enough local skilled workers, such as engineers, draftsmen and surveyors.
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As for the managing the social impact of a bigger foreign workforce, Mdm Phua said it was important to "close the social divide between locals and foreign employees" and minimise "feelings of resentment or hostility among locals".
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Economist Mr Song also felt the Government should work towards ensuring that "resources and infrastructure for foreign employees are put in place", such as recreational facilities. -
Hell.. might as well demolish the door & not have a door at all.... -
why open the door wider for foreigners instead of our own ppl?
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Originally posted by HyperFocal:Hell.. might as well demolish the door & not have a door at all....
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crap! sg gov really favours those mofo foreigners when we're well-aware the locals are more than capable.
unjustified biasness. -
Biased?? You're wrong... they are not biased...Originally posted by trendz:crap! sg gov really favours those mofo foreigners when we're well-aware the locals are more than capable.
unjustified biasness.
... they are just GREEDY... -
What a load of crap. A tightening labour market is supposed to be good for the citizens/residents. Squeeze, the people further, and then there will be a slump in the retail sector.
Housing going up, costs going up, but govt wants to keep wages low? WTF? -
tigthening of labour market is like a choked arterly in your body and if you dont go under the knife and fix it, ill cause more fatal injury to other parts of your body and even death.Originally posted by Jontst78:What a load of crap. A tightening labour market is supposed to be good for the citizens/residents. Squeeze, the people further, and then there will be a slump in the retail sector.
Housing going up, costs going up, but govt wants to keep wages low? WTF? -
Originally posted by HyperFocal:Biased?? You're wrong... they are not biased...
... they are just GREEDY... -
Hey!Originally posted by Gazelle:tigthening of labour market is like a choked arterly in your body and if you dont go under the knife and fix it, ill cause more fatal injury to other parts of your body and even death.
I'll be out of a job coming 01/01/2008.
The reported job market looks rosy.
Now this news.
I am now in the hospitality sector, forced out of the banking sector by restructuring.
Looks like now I have to compete with the Filipino and the Nepalese for a new job.
I am a Singaporean in Singapore. -
I don't see the co-relation. Using FTs to increase GDP is like using steroids to artificially increase strength/performance. Over use can cause health problems and even death. Don't try to lift something your body isn't equipped to lift, you'll hurt yourself.Originally posted by Gazelle:tigthening of labour market is like a choked arterly in your body and if you dont go under the knife and fix it, ill cause more fatal injury to other parts of your body and even death.
Also, the main function of FTs is to fill up the gaps in the workforce, as a supplement. The already loose regulations to employ FTs has already caused employers to use FTs as a cost take-down measure.
Almost direct intervention by the Govt in this case to keep wages low. But they raise GST and no intervention on other increases, like daily essentials like food and transportation.
And I dun even have the right to chose to be on the same level playing field as an FT. like "No CPF for me, give me my whole salary, employer no need to contribute." If a resident costs more to an employer than an FT, for the same job, where does that leave the residents then? -
hey mancha, are you working for citi?Originally posted by mancha:Hey!
I'll be out of a job coming 01/01/2008.
The reported job market looks rosy.
Now this news.
I am now in the hospitality sector, forced out of the banking sector by restructuring.
Looks like now I have to compete with the Filipino and the Nepalese for a new job.
I am a Singaporean in Singapore. -
“And that third Singapore is the big chunk of people squeezed in the centre, between the poor and the rich,” he said.
They know what is happening, but is the economic growth too inciting to stop what they are doing? Or to put measures in place?
“This group is the most vulnerable. If they feel the high life is out of their reach, frustration can set in. And being more mobile than the lower-end group, they can be tempted to vote with their suitcases. That is an option the other group doesn’t have.”
These warnings show growing government awareness that the speed to expand the population, if not the strategy itself, may threaten social harmony.Madam Halimah Yacob, who is in the Government Parliamentary Committee (GPC) for manpower, said that while the measures are a "necessity from an economic viewpoint", the Government has to ensure employers do not look at foreign workers as an "easy first option". She stressed the importance of creating job opportunities for older workers and women employees.
I agree which what she said, and the govt should have already taken steps before opening those doors. -
If injecting the economy with FT will generate a boost in GDP, then why do we still have recession?
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Recession come in a cycle n when it comes, the foreign professional will not be spared n some of them will go back to their countries. They might come backOriginally posted by Gazelle:If injecting the economy with FT will generate a boost in GDP, then why do we still have recession?
when the situation has improved. -
The open door policies for MNCs to come in(which handicapped our SME industry but thats for another thread) , created the demand for the FTs, to sustain that growth in the GDP target that they want to achieve.Originally posted by Gazelle:If injecting the economy with FT will generate a boost in GDP, then why do we still have recession?
Recession coz someone outside has to actually "buy" or "pay" for the GDP, and no one or not enuff did. -
I felt that some of the foreigners especially those white collar luckier than local. Although local can get CPF contribution by employers, they cannot
touch it n need to use it to buy annuity. If u look at the foreign white collar
worker from the neighbouring countries, they quite lucky cause the money they saved can enable them to buy landed properties. -
if you think you are trapped, you are.
if you procrastinate, you are. -
Can you give us an example of how MNC handicapped our SME? I would have thought that more FDI coming into Singapore it will bring more business for SME. And by restricting FT into Singapore will it not handicapped our SMEs?Originally posted by Jontst78:The open door policies for NMCs to come in(which handicapped our SME industry but thats for another thread) , created the demand for the FTs, to sustain that growth in the GDP target that they want to achieve.
Recession coz someone has to actually "buy" or "pay" for the GDP, and no one or not enuff did.
But you did say that by bringing in more FT it will boost the GDP what? -
if you don't try, you won't.
if you don't act, you won't. -
Yup, voting with my suitcase sound like a really nice idea now, instead of pondering... thanks for the enlightenment.Originally posted by Daddy!!:if you think you are trapped, you are.
if you procrastinate, you are. -
SMEs are small, not usually labour intensive. Even with full quota of FTs if at lower cost, not alot of savings. (assuming the company goes FT as a cost takedown measure.)As compared to a MNC. Which is the beef of the local residents that are unhappy with the influx of FTs.Originally posted by Gazelle:Can you give us an example of how MNC handicapped our SME? I would have thought that more FDI coming into Singapore it will bring more business for SME. And by restricting FT into Singapore will it not handicapped our SMEs?
But you did say that by bringing in more FT it will boost the GDP what?
As for how NMCs stifle SMEs, thats for another thread, start it if you want. As its a whole separate can of worms
The target GDP growth created a deficit, buy luring investors. Injection of FTs to sustain that target growth in the GDP target that they want to achieve. Clearer now?
Apologies, do pardon my poor choice of words, not in a habit of proof reading every post. -
I think you got it all wrong again.Originally posted by Jontst78:SMEs are small, not usually labour intensive. Even with full quota of FTs if at lower cost, not alot of savings. (assuming the company goes FT as a cost takedown measure.)
As compared to a MNC. As for how NMCs stifle SMEs, thats for another thread, start it if you want. As its a whole separate can of worms
The target GDP growth created a deficit, buy luring investors. Injection of FTs to sustain that target growth in the GDP target that they want to achieve. Clearer now?
a) No MNCs will invest a labour intensive operation in Singapore, if they want cheap labour, they go to China, Vietnam, India or other developing countries.
b) SMEs usually has to compete on price and fight for smaller projects because they lack financial power, technology and branding. And I believe SMEs are the biggest employer of cheap FT in Singapore.
c) One of the reasons why high tech companies are investing in Singapore is because we have ample supply of skilled labours (FT or local) it is not because we have cheap labour.
d) I have no clue about what target, deficit GDP you are talking abuot. Lets skip this discussion as it will lead to nowhere. -
Good luck to you guys!
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Singapore has attracted FT like this lecturer from PRC and he was also given citizenship ....haha
http://www.straitstimes.com/Latest%2BNews/Courts%2Band%2BCrime/STIStory_181672.html
Poly lecturer jailed, fined for cheating
By Elena Chong, Court Correspondent
A FORMER lecturer who cheated Singapore Polytechnic by submitting by false claims was jailed for four weeks and fined a total of $10,000 on Thursday.
Wei Dake, 43, pleaded guilty to two charges of deceiving Mr Ong Eng Chan, 60, the director of the School of Mechanical & Manufacturing Engineering, into believing that receipts of $198 and $199 he submitted in October and November 2005 were genuine.
Ten other similar charges involving $1,944 were taken into consideration.
A district court heard that Wei led a team of students in their final-year project from June to December 2005. Several items of equipment had to be bought by students and he made claims from his superior.
Sometime in February that year, he found and kept a booklet of blank invoice forms at a shop in Yishun stamped with the name Jackson Technology Supplies Pte Ltd. He decided to use it to submit false claims to get extra cash for himself.
He was reimbursed for the two claims he made totalling $397.
In December that year Mr Ong noticed that the invoices Wei submitted appeared suspicious and referred the matter to the internal auditor.
Investigation showed that the company Jackson Technology Supplies did not exist.
A police report was made in April last year.
Pleading for leniency, Wei's lawyer, Mr Daniel Chia, said his client, a former Chinese national and now a Singapore citizen, was deeply remorseful.
Wei could have been jailed for up to seven years on each charge.