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Several Singapore chambers of business have expressed concern about the message sent by the new Ministry of Manpower (MOM) rule for dependent pass holders to obtain a formal work pass in order to work in the country.
In a report by The Straits Times (ST), they noted that many of those foreigners have skills and experience that can contribute to Singapore’s economy, and having a more restrictive rule can cause difficulties for companies to relocate staff or executives senior with families.
However, some observers noted that the impact on companies may not be huge, as dependents with valuable skills may qualify for job passes.
As of May 1, spouses or relatives of foreigners working in Singapore with Dependant’s Passes (DP) will be required to obtain a work pass to work in the city-state, rather than a letter of consent, the MOM said on Wednesday (March 3). ).
This means that DP holders’ employers will need to apply for an Employment Pass (EP), S Pass, or Work Permit for them, rather than the letter of consent they currently use, including applicable salary, fees, and levies. .
MOM noted that existing PD holders who are currently employed on a consent letter may continue to work, but would still need to obtain a work pass when their current consent letter expires.
DP holders who are business owners, on the other hand, will be able to continue operating their businesses with a letter of consent if their businesses create local employment.
To qualify for this, they will have to be the sole owner, partner or director with at least 30 percent interest in the business, MOM said.
He added that the company must hire at least one Singaporean or permanent resident (PR) who earns at least S $ 1,400 and receives contributions from the Central Provident Fund (CPF) for at least three months.
Concerns of business groups
According to MOM, there are around 11,000 PD holders working in the country with letters of consent, or around 1 percent of work pass holders. This figure excludes migrant domestic workers.
Commenting on this, Managing Director of human resources firm PeopleWorldwide Consulting, Dr. David Leong, said that while the numbers affected are small, the new rule tips the balance of probabilities toward Singaporean job seekers.
The leaders of the business chambers noted that some of the jobs that DP holders do include part-time professors in private education, entrepreneurs, positions in foreign chambers and religious institutions, as well as language teachers in local organizations.
The executive director of the Australian Chamber of Commerce in Singapore, Kate Baldock, said that among the Australian community in Singapore there is a concentration of workers with letters of concern in certain industries, as well as companies that operate sole proprietorships, and these sectors could be seriously affected. affected. affected by changes.
“We are hearing from certain industries, as well as our SME (small and medium-sized business) community and the startup community, that this could cause significant challenges,” he said.
On the other hand, Dr. Lei Hsien-Hsien, executive director of the American Chamber of Commerce here, noted that many DP holders possess advanced degrees, skills, experience and capabilities that can potentially meet the needs of the niche workforce.
A large number of them own small start-ups, which contribute to the growth of the country’s economy, while some offer specialized services such as marketing and communications for non-governmental organizations.
“However, due to the circumstances, they often require a more flexible work arrangement that includes part-time or contract work, which is accommodated in the consent letter,” he said.
Dr Lei added: “It is much more appealing and reassuring for families to know that there is a relatively straightforward option to obtain a consent letter to facilitate the work of dependents.”
Additionally, Singapore International Chamber of Commerce Executive Director Victor Mills noted that the new MOM rule reduces options and opportunities, especially for partners and spouses of PE holders.
“The most serious impact will be the perception that Singapore is a less welcome place than in the past. And we all know that perception is a reality for many people ”.
However, some business groups don’t see much of an impact from the new rule.
Lam Yi Yong, executive director of the Singapore Business Federation, said that most of the foreign employees in companies here would already have their work passes.
Separately, OCBC Bank Chief Economist Selena Ling quoted the recently launched Tech.Pass program as saying: “Singapore clearly remains open to foreign talent, especially mid-to-senior professionals in key sectors.”
Netizens react
In ST’s Facebook post, netizens criticized business groups for their concern over MOM’s new rule on DP headlines.
They explained that Singapore needs real foreign talent and that DPs deprive locals of getting the jobs that are meant for them.
Some questioned why DP holders should be treated differently, and that if they want to get a job in Singapore then they should apply for EP or S Pass, just like other foreigners who have a job here.
Others questioned the “niche skills” these dependents have that business groups have expressed.
Online users said that most PD holders are spouses or parents or in-laws of work pass holders, and they work part-time doing odd jobs.
As such, they said that these PDs are working low-paying jobs without much complaint, adding that it is not about “niche skills.”
