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Trade and Industry Minister Chan Chun Sing sums up the government’s position on foreign labor in three words: equity, diversity and localization.
First, there is “zero tolerance for discrimination of any kind,” he said in an interview with The Sunday Times and Lianhe Zaobao on Friday of Singapore’s approach to strengthening its workforce, even as it had to remain open to talent and trade deals. free trade to create. jobs and growing the economy.
Companies with discriminatory hiring practices will be placed on the Fair Consideration Framework watch list and their applications for work passes abroad will be reduced.
The framework was introduced in 2014 after Singaporeans voiced dissatisfaction with foreigners taking away high-paying professional, managerial, executive and technical (PMET) jobs.
Second, companies that need to draw on foreign labor should avoid hiring from a single source.
“If we want to serve international markets, then it makes sense for companies to have diverse international teams,” Chan said.
It is also good for business continuity. As travel restrictions and lockdowns have shown during Covid-19, over-reliance on a single source of labor can be detrimental.
Companies with a diverse workforce also do better at social inclusion, Chan said.
Third, localization, the transfer of skills to develop a local talent stream, is key. For companies that need to improve in this area, economic agencies and trade associations will work with them to advance their talent development system and practices.
“Many Singaporeans have benefited from these development programs and moved into leadership positions,” Chan said, citing ExxonMobil Asia-Pacific and Shell Singapore as examples of multinationals whose operations here are run by Singaporeans.
One factor that has influenced the growth of the presence of these multinational giants here is the proliferation of free trade agreements (FTAs) that Singapore has with major trading partners.
CREATING JOBS
Whenever investors invest in Singapore, they do not plan to only serve the local market, nor do they plan to serve only another external market.
The more FTAs we have … the more competitive we will be in attracting investment and creating jobs.
THE MINISTER OF TRADE AND INDUSTRY, CHAN CHUN SING, on the network effect of free trade agreements.
These FTAs help create good jobs for Singaporeans through their network effect, Chan added.
“Whenever investors invest in Singapore, they do not plan to only serve the local market, nor do they plan to serve only another foreign market,” he said. “The more FTAs we have … the more competitive we will be in attracting investment and creating jobs.”
Of the 25 Singapore FTAs, the Singapore-India Comprehensive Economic Cooperation Agreement (Mint) has often been the pasture of government critics who say it opened the floodgates for Indian nationals to enter Singapore.
Many of the misgivings about Ceca center on the belief that it grants Indian citizens and their dependents unrestricted entry into Singapore. Chan responded that Ceca does not grant Indian nationals unconditional access to Singapore and immigration privileges.
Like all other foreigners, they must meet Singapore’s current employment pass (EP) criteria, such as minimum wage thresholds, he said.
What about the call from some opposition parties, notably the Singapore Progress Party, to review the FTAs, including the Mint?
Chan said that while it’s tempting to play arcade, renegotiating a FTA isn’t just about what Singapore wants. “What bargaining power do we have to get something from (the other party)? Can we get what we want without giving up even more?”
A larger number of FTAs strengthens Singapore’s bargaining power by providing more options, he said. “Getting rid of FTAs is not the right antidote. Renegotiating a FTA at the wrong time is not the right antidote either.”
Chan noted that the concentration of certain nationalities in some sectors is determined by the fact that these are high growth areas competing for global talent.
If Singapore concentrates its efforts on growing a very small set of sectors, it may have a better chance of securing a higher proportion of locals in each sector, Chan said.
But then the economy becomes concentrated and fragile, and employment options for the next generation will be limited.
“If we want the diversity of options, then we will need a certain (foreign) complement for each of these sectors,” he said, admitting that it is a “heartbreaking” dilemma.
But he said it’s the right thing to do: develop high-growth sectors, create better jobs for Singaporeans and train them quickly, and give them a fair playing field to compete.
Singapore will also ensure that it continues to invest in schools and continuing education so that people have the skills to stay competitive, particularly those in their 40s and 50s. The government is also helping to provide older and middle-aged Singaporeans with more help on the jobs and skills front, he added.
The latest effort to level the playing field was the announcement Thursday that the minimum qualifying wage will be increased for EPs and S Passes, which allow foreign professionals and mid-skilled workers to work here.
Starting Tuesday, companies requesting new PEs for foreign professionals must pay them at least $ 4,500 a month, up from $ 3,900. The bar is higher for those in financial services: at least $ 5,000 for new EP holders as of December 1, the first time a higher qualified salary is specified for a particular sector.
What does Chan think of some Singaporeans’ fears that companies will seize the opportunity to raise the salaries of these foreigners?
“I don’t see this as a minimum wage. When we increase the (pay) margin, it actually creates more space for Singaporeans to compete,” he said, adding that this should be done progressively so as not to shock the system. . “Even as companies move toward less dependence on the lower end of PE holders, they still need time to make adjustments.”
He stressed that Singapore is still very open for business.
“We need to be the magnet where people still want to do business and do business.
“Indeed, there are things in the world of Covid-19 that have accentuated our strengths: strong leadership, a stable environment, long-term coherent policies, connectivity to the world, intellectual property protection, stable tripartite relationship, workforce. qualified and, most importantly, a progressive people who embrace the world. “
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