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SINGAPORE: Singapore focuses on “quality, rather than quantity” with the latest increases to wages for foreigners qualified in Employment Passes and S Passes, said Minister of Commerce and Industry Chan Chun Sing on Saturday (29 May August).
Earlier this week, the Ministry of Manpower announced that minimum wages for new applicants for the Employment Pass will be raised by S $ 600 to S $ 4,500 starting in September. S Pass holders will need to hit a threshold of S $ 2,500, instead of S $ 2,400, starting in October.
A higher salary requirement was also introduced for job pass holders in the financial services sector.
READ: The qualifying minimum wage will increase by S $ 600 for Employment Passes and S $ 100 for S Passes, higher requirement for financial services
In an interview with CNA on Saturday, Mr. Chan said: “The way to interpret the recent changes is this, we are moving towards quality, rather than quantity … and this is what we have progressively done throughout of the years.
“Whenever economic conditions require it, we will progressively adjust the qualification wages for foreign employees entering Singapore because by doing this we increase the margin for Singaporeans to compete and at the same time it does not affect the really higher level of talent that we want to attract from the world ”.
He added: “But for those jobs that are somewhere in the middle where fellow Singaporeans are more than capable of, then there is less need for us to attract so many (foreigners) to Singapore.”
Chan acknowledged that the changes will affect companies in the area of costs and the ability to hire foreigners.
It may also affect how Singapore is perceived in terms of its openness to the world’s companies and talent, to which the minister stressed that Singapore “is not closing (its) doors.” “We will never disconnect from the world.” added.
However, the country has to “find a delicate balance,” he said.
READ: ‘Timely’ Adjustments to Employment Pass and S Pass Criteria to Help Businesses Retain Local Employment: Josephine Teo
The minister also referred to the need for Singapore to diversify its economy, to avoid being vulnerable to external shocks and to be able to provide various opportunities to its current and future generations.
Since Singapore is a small country with a finite workforce, “it will need a portion of foreign complement in the different sectors” in which it seeks to grow and diversify, he added.
Noting observations of a “concentration of certain nationalities” in sectors such as finance and information and communication technology (ICT), he said this challenge is not unique to Singapore given the global competition for talent in these areas. high growth.
“This is a global challenge and that is ultimately because the whole world is not producing enough people in some of these fields. It is a very uneven production of those people and they all want the best, ”said Mr. Chan.
The government’s goal is for Singaporeans to get jobs in these fast-growing industries, and it is doing so by investing in these sectors and developing its own skills. This was also a strategy the country adopted in the past when seeking to strengthen its petrochemical and manufacturing sectors, Chan said.
“While we accept that we still don’t have enough … talent in these (high-growth) sectors, we will do what we can to increase production and training of our people as quickly as possible,” said Mr. Chan, noting that this includes retraining middle-aged workers to help them transition into flourishing industries.
“It will take us some time to increase production and training of our people, but we will succeed,” he said.
UNDERSTANDING “FULLY” ANXIETY FOR JOB COMPETENCE
With Singapore preparing for its worst recession amid the COVID-19 pandemic, the Government “fully” understands the anxiety over competition for jobs with foreigners.
“So the real challenge is not the number of foreigners in Singapore per se; the real challenge is how do we help Singaporeans succeed in a hyper-competitive world, ”said Mr. Chan.
READ: Job competition from job pass holders could become ‘divisive issue’, will be addressed, says President Halimah
The government “will do everything possible” to do so, he added, by attracting investment to create good jobs for Singaporeans and ensure a “level playing field.”
Regarding the latter, he emphasized that Singapore has “zero tolerance for discrimination of any kind”, adding that companies that have done so will be investigated and sanctioned in the form of reducing their work passes abroad.
Among other plans, policymakers are also improving job matching efforts with training and apprenticeship opportunities, especially for middle-aged workers.
“We want to assure all Singaporeans, regardless of whether they still have a job or are out of work, we are going to do everything we can to take care of Singaporeans at this difficult time.”
“WRONG PERCEPTIONS” ABOUT CECA
Chan also said he wants to “clear the air” on misperceptions surrounding the Comprehensive Economic Cooperation Agreement (ECSC), a free trade agreement between Singapore and India that came into effect in 2005.
Earlier this week, the Ministry of Commerce and Industry (MTI) issued a statement noting that the pact does not automatically grant Indian citizens access to Singapore citizenship, permanent residence or employment.
It is also not true that the CECA requires the Singapore authorities to automatically grant Employment Passes to Indian professionals, managers and executives who want to work here, the statement added.
READ: CECA does not grant Indian citizens automatic access to citizenship, public relations status, employment: MTI
Chan also made similar comments in November last year, when he pointed out that falsehoods related to the bilateral agreement and other free trade agreements (FTAs) have emerged following an incident in which a man was filmed attacking a security guard in his home. condominium.
Reiterating these points, the minister told CNA on Saturday that all foreigners applying for Employment Passes must meet current criteria. Employers must also respect current regulations that stipulate that hiring “be done in a meritocratic and non-discriminatory manner.”
Indian nationals who wish to enter Singapore under the ECSC as “intra-company transferees”, or employees transferred from a foreign company unit to Singapore, will also have to abide by these rules, he added.
Mr. Chan noted that the intra-company transfer clauses “are not exclusive” to Singapore’s trade agreements, and that they are “consistent” with the General Agreement on Trade in Services of the World Trade Organization.
“The practice of empowering transfers within the company is intended to help companies expand abroad,” he explained. “The same happens with foreign companies that seek to install their investment here. The same is also true for Singaporean companies moving abroad. “
Chan went on to say that Singapore’s trade and investment with India has grown under ECSC.
In addition to protecting Singaporean companies investing in India, it has also helped attract foreign investors who invest in India and employ Singaporeans to manage their investments in Singapore.
“In 2018, we have more than 650 companies in Singapore that have invested in India. At home, these companies employ over 100,000 Singaporeans and PRs (permanent residents), ”said the minister.
When asked if there was a timetable for the CECA review, Chan said that all FTAs include a clause for periodic reviews. But recent events in the global environment mean that Singapore must be “very careful” when entering any of these negotiations.
For example, the COVID-19 pandemic has accelerated change in global production and supply chains.
A rise in protectionist sentiment in some parts of the world will also mean that “many countries are entering this type of review from a defensive position,” which will make “any review very difficult,” the minister said.
More generally on Singapore’s 23 FTAs, Chan said this “extensive network” has made Singapore an attractive place for investment.
“Without this TLC network, and since we don’t have a natural competitive advantage in terms of resources, labor or land, it gives us something with which we can compete with others (and) to create those jobs, those good jobs that we want. for colleagues. Singaporeans, ”he said.
