Singapore tightens rules on foreign staff
Source: Agencies |
August 17, 2011, Wednesday
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Print Edition
Print Edition
Singapore's government, facing pressure from residents competing with foreigners for jobs, yesterday tightened the rules for firms hiring overseas workers.
The ruling People's Action Party is under pressure to slow the rise in the number of foreigners seeking work in the city-state after May parliamentary elections in which the opposition made historic gains.
Labor shortages mean the country has to rely on immigrant workers for many jobs. Discontent voiced by voters in the run-up to the elections included the issues of competition for jobs and places in schools.
From January next year, a foreigner must earn a minimum S$3,000 (US$2,493) a month to qualify for a work permit (employment pass).
The Ministry of Manpower said: "Our aim is to avoid increasing dependence on foreign workers over the long term by keeping the foreign share of the workforce at about a third."
It said the changes will ensure that "as salaries of locals rise as they gain in experience and progress in their careers, they will not be disadvantaged by employment pass holders coming in at lower wages."
People who do not qualify for a pass can continue to work but employers will be subject to quotas and levies.
The ministry said it will give businesses time to make adjustments by phasing in the new requirements for existing staff over a year or two.
About one in five existing pass holders will be affected by the changes. Economists say the hardest-hit sectors will be hotels and the offshore marine industry.
Foreigners currently account for about 35 percent of the 5.1 million people in Singapore.
The ruling People's Action Party is under pressure to slow the rise in the number of foreigners seeking work in the city-state after May parliamentary elections in which the opposition made historic gains.
Labor shortages mean the country has to rely on immigrant workers for many jobs. Discontent voiced by voters in the run-up to the elections included the issues of competition for jobs and places in schools.
From January next year, a foreigner must earn a minimum S$3,000 (US$2,493) a month to qualify for a work permit (employment pass).
The Ministry of Manpower said: "Our aim is to avoid increasing dependence on foreign workers over the long term by keeping the foreign share of the workforce at about a third."
It said the changes will ensure that "as salaries of locals rise as they gain in experience and progress in their careers, they will not be disadvantaged by employment pass holders coming in at lower wages."
People who do not qualify for a pass can continue to work but employers will be subject to quotas and levies.
The ministry said it will give businesses time to make adjustments by phasing in the new requirements for existing staff over a year or two.
About one in five existing pass holders will be affected by the changes. Economists say the hardest-hit sectors will be hotels and the offshore marine industry.
Foreigners currently account for about 35 percent of the 5.1 million people in Singapore.
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