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Singapore seeks to balance workforce with new visa rules for foreigners

Under the new system, applicants will be awarded points based on how many other workers of their nationality are hired by their employer and how many other foreigners work there in relation to local staff.

Reuters
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Office workers sit apart during their lunch break at the central business district in Singapore, Sept 8, 2021. The proportion of non-residents among Singapore's 5.5 million population has increased from about 10% in 1990 to nearly 30% today, according to government statistics. Photo: Reuters
Office workers sit apart during their lunch break at the central business district in Singapore, Sept 8, 2021. The proportion of non-residents among Singapore's 5.5 million population has increased from about 10% in 1990 to nearly 30% today, according to government statistics. Photo: Reuters

Singapore will introduce a new work permit approval system next year, its manpower minister said on Friday, amid concerns over a tight jobs market and calls to focus on training the local workforce.

The Southeast Asian financial hub has long been a popular location for foreign firms to base their regional headquarters. It hopes its new points-based system will ensure a “high quality diverse workforce” by using foreign talent that “complements” locals, minister Tan See Leng told parliament.

Foreign labour has long been a thorny issue in Singapore and pandemic-related job cuts and business closures have heightened concerns about employment opportunities among its local population.

The proportion of non-residents among Singapore’s 5.5 million population has increased from about 10% in 1990 to nearly 30% today, according to government statistics.

The new rules for so-called employment passes (EPs), which are typically granted to high-paid professionals, will take effect in September 2023.

“(The new framework) is not designed to make it harder for businesses to obtain an EP,” Tan said.

He added that most applications today would be successful under the new rules, though some firms would need to “make adjustments”.

The manpower ministry previously warned some companies against hiring too many professionals of a single nationality and urged them to diversify their workforce and hire more local staff.

Under the new system, applicants would be awarded points based on how many other workers of their nationality are hired by their employer and how many other foreigners work there in relation to local staff. This would be in addition to existing criteria like applicants’ qualifications and salary.

There would be bonus points for candidates with skills that are scarce in the country, like in the technology sector.

The city-state will also increase the minimum salary requirement for EP applicants to S$5,000 (US$3,679) in most sectors and S$5,500 in the finance sector from September this year. The threshold will be adjusted based on the applicant’s age.

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