MOM’s Boast: Singapore Squeezed around 20,000 Foreign Workers in 2014
- Author Roman Yarovyi
- Published May 26, 2015
- Word count 759
According to this year’s employment report by Ministry of Manpower, the number of foreign workers decreased dramatically during the previous 2014 year (34,000 compared to 53,300 in 2013). Almost 20 thousands foreign skilled workers were squeezed from Singapore. MOM boasts that they managed to slow down the influx of labor immigrants in 2014 while improving local employment situation (12,000 more natives landed jobs in the country). Does it mean Singapore prepares to switch over to the native labor force totally or just gets rid of underskilled immigrants that stir up mixed feelings of xenophobia and rivalry?
MOM keeps an eye open for how firms follow its "fair consideration" course. In January, it announced about investigation into 150 Singaporean firms which violated the government’s policy and unfairly replaced natives with foreign labor force. Some companies lost their right to hire foreigners for up to 2 years.
Nevertheless, the government decided to wait for one more year with their total levy breakdown for holders of Work Permit and S Pass which was going to make hiring a semiskilled foreigner a losing undertaking. It seems like Singapore struggles maneuvering between its outstanding open-armed immigration course and devotion to its own nation. And the priority belongs to the nation.
After the last increasing of the bottom salary benchmark to from 3,000 SGD to 3,300 SGD in 2014 for Employment Pass (designed for professionals and graduates with high qualification), thousands of EP holders were missed out of the EP privileges and pushed into S Pass reality. Becoming a holder of any employment visa for Singapore became a hassle and almost unfeasible without the help of visa experts.
"Getting a work visa now is a matter of elaborate approach," says Cheng Heng, senior consultant at One Visa Pte Ltd (www.one-visa.com) whose company managed to wring over 200 work visas and Dependant’s Passes from MOM last year. "We must study our clients’ profiles more diligently to eliminate all risks and keep updated with the latest MOM’s requirements. Getting a visa is no longer a pushover – it’s a battle that may cost somebody a career, and we are doing our best to help more candidates to get qualified."
Workers who earn less than 3,300 SGD and more than 2,200 SGD fit the S Pass category, while those who earn less than 2,200 qualify for Work Permit. Both Work Permit and S Pass have government-established quota and involve levy the employer must pay for each foreign worker. For example, for S Pass the quota is 15% of the employer’s total workforce, while the monthly levy for one foreigner can be from 315 SGD to 550 SGD (depending on the number of foreigners hired).
Too much headache, as MOM expected, makes more and more Singapore firms turn their backs to foreign manpower. Here everything depends on the worker’s real qualification. Some employers are ready to increase salaries of their foreign staff in order to leave them on the board as EP holders if the worker is really valuable. But if it is the first time a foreigner searches for a job and he/she doesn’t meet skill and education requirements, due to all levy and quota burdens, he/she is more likely to get rejected.
"We are trying to impact the situation when it is possible, basically when it comes to Employment Pass" Mr. Heng says. "There is a lot of misunderstanding among employers. They are afraid of hiring foreigners under Employment Pass even besides this kind of visa doesn’t entail levy and quota restrictions. We suggest our clients that our consultants can reach out to their potential employers and explain all prospects concerning hiring overseas professionals, and often building such "bridges" ends in desirable employment."
Most foreigners who had been pushed down to S Passes found out that getting Permanent residency became harder for them as authorities save such "permanent" places only for EP holders which are more professional.
"But still it is possible to get lucky tickets with professional help," Mr. Heng believes. "Visa agency is not only a team that is able to handle all routine visa paperwork. It’s a powerful intercessor with a talent to see a candidate’s chances as MOM see them and build up prominent profiles that would persuade strict government."
Singapore didn’t stop being a magnet for foreign talented brains and hands; it is doubtful whether less immigrants stormed the border last year. 20 thousands foreigners a year is a huge cut down that means today more and more candidacies get rejected. This number is unlikely to decrease, so agencies might have an avalanche of work this year.
Roman Yarovyi
PR and Communication Manager for One Visa Ltd, a Singapore Employment Pass agency based in the Singapore.
Heads up the department that specialises in a range of news & PR-related activities for major international clients. These services include support of international clients who decide to relocate to Singapore, start own business or invest in Singapore economy. 3 years experience in online journalism and product marketing.
www.one-visa.com
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