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Singapore residents share concerns over job competition with foreigners despite assurances from Govt

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Associate Professor Jamus Lim who is the Workers’ Party Member of Parliament for Sengkang GRC posted a message on his Facebook page today (23 Sep 2022).

In his post, he mentioned that during his weekly house visit, he came across a resident who shows concerns over the new One Pass scheme announced by Singapore Manpower Minister Dr Tan See Leng recently.

“This week’s house visits brought #TeamSengkang to 355A, where we had so many long, sobering conversations that we only made our way through a third of the block,” Assoc Prof Lim said. “With so many Singaporeans returning to the workplace, many conversations revolved around the labor market, and in particular, the place of foreign talent relative to our domestic workforce.”

In particular, Assoc Prof Lim mentioned that one resident had shared with him his concerns over the One Pass scheme. The resident returned back to Singapore after a long stint in China, and has been having difficulties finding a job here, despite his extensive experience and solid skill set.

“He expressed his concern that ONEPass—despite its high qualification bar—would ultimately end up exacerbating the difficulties locals faced in advancing to the upper tiers of the corporate hierarchy, thereby relegating them to being trapped in middle management.”

This fear was further corroborated by the impression that many foreign nationals working here tended to favor their own countrymen, further alienating Singaporean job seekers, Assoc Prof Lim added.

“Unlike nativist sentiments that are now commonplace in many countries, these Singaporeans were not instinctively anti-foreigner,” Assoc Prof Lim stressed.

“Rather, it was the gnawing sense of feeling like Singaporeans are disadvantaged in their own country. As someone who has felt that sense of discrimination as I competed with others as a expat abroad, it breaks my heart to hear that there are many workers that feel the same way, right at home.”

In the Ministerial Statement delivered by Dr Tan on 12 September, four targeted enhancements to Singapore’s work pass framework were announced.

  1. A new Overseas Networks & Expertise Pass (ONE Pass) for talent earning at least $30,000 in fixed monthly salary, comparable to the top 5% of Employment Pass (EP) holders or with outstanding achievements in arts and culture, sports and research and academia.
  2. A new benchmark pegged to the top 10% of EP holders for existing schemes, namely, the exemption from the Fair Consideration Framework (FCF) job advertising requirement and Complementarity Assessment framework (COMPASS) as well as salary criterion for the Personalised Employment Pass (PEP).
  3. Restoring the FCF job advertising duration from 28 days to 14 days with effect from 1 September 2022 and improving the processing time of EP applications.
  4. The option of a five-year EP to experienced professionals filling tech occupations on the COMPASS Shortage Occupation List (SOL).

In that Parliamentary sitting, People’s Action Party’s MP for Bukit Panjang SMC, Mr Liang Eng Hwa had asked if reductions in the job advertisement period reduces the impetus for employers to hire local PMETs, especially those in the more mature age groups.

Mr Liang had pointed out that Singapore does have a significant pool of mature PMET talents – those that may be between the age of 50s and 60s. And that it should do more to help improve their employment opportunities as “there is still a very sticky bias against this group of PMETs”.

In response, Dr Tan said that Singapore has very high job vacancies compared to jobseekers today. He said, “As of end-March 2022, it was about 2.4. I think if we look at it, moving forward, it will continue to rise”.

“To the group of PMEs in the 50s and 60s, we have also offered significant support measures to ensure that they continue to stay incentivised and enfranchised to continue to work.” shared Dr Tan.

He went on to also state that the Deputy Prime Minister Lawrence Wong is launching Forward SG which in its key pillars have its focus on Singaporeans.

Does the Singapore government understand the extent of possible discrimination against Singaporean workers and the effectiveness of FCF?

At the same sitting, Mr Chua Kheng Wee Louis, WP MP for Sengkang GRC asked if MOM has any statistical data to show that the FCF is actually achieving its stated purpose and that companies are not just going through the motions of putting up their advertisements.

“For example, such as the number of interviews being granted or the number of applicants that actually end up being hired through these advertisements.” asked Mr Chua.

Under FCF, employers submitting Employment Pass and S Pass applications must first advertise on MyCareersFuture and fairly consider all candidates. This is said to promote fair employment practices and improve labour market transparency.

In response, Dr Tan said that he had earlier shared that about 70% of the responses to the FCF advertisement happens within the first two weeks. After that, it then straddles along.

“And many companies have given feedback that they are really finding it very difficult to hire and if they wait for the period of time, for the 28-day advertising duration, they will lose the particular person that they want to hire and it compromises the operations of the business.” said Dr Tan.

While Dr Tan emphasised that MOM will not hesitate to take action if companies discriminate against locals or if they discriminate against anyone in terms of characteristics, he did not provide the figures that Mr Chua had asked for.

In a 2019 written response by then-Manpower Minister Josephine Teo, she states: “MyCareersFuture.sg contributes to these placement results. Neither employers nor jobseekers are obliged to inform WSG of the outcomes of their job postings or searches. ”

So if the government is not privy as to what the results are when companies list their jobs on the job portal to fulfil the requirement under FCF, then how is it possible for it to declare that there is no discrimination of employers against local employees with some — as Mr Chua raised in his supplementary question to Dr Tan — going through the motion of listing the jobs on the job portal?

Furthermore, it is said that the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) received an average of 379 workplace discrimination complaints each year between 2014 and the first half of 2021. Bulk of the complaints — 233 out of 379 — are attributed as discrimination by “nationality”.

It is puzzling how the government talks about the effectiveness of its schemes when it cannot get the info or asks for it from the companies. Not to mention how it interprets the figures it has on its hand.

Companies continue to recruit foreigners for higher level positions

As far back as 2013, then DPM and Finance Minister Tharman Shanmugaratnam told Parliament:

“Nurturing a Singaporean core is important not just for GIC and Temasek, but to our enterprises and financial institutions based here. Deliberate efforts have to be put in succession planning and talent development to give Singaporeans opportunities and exposure to nurture their skills, build up experience locally and beyond, so that they can take on larger responsibilities in time to come.”

Nine years later, the government continues to issue work passes, allowing companies to recruit foreigners for their top positions, thereby “robbing” Singaporeans the opportunities to take on larger roles.

Where is the will to develop a “Singaporean core”, one might ask.

Take for instance, according to a HR news from eFinancialCareers last Nov, StanChart has appointed some foreigners to top positions inside the bank (‘Stan Chart appoints new Singapore MD in year-end hiring spree‘, 26 Nov 2021).

It said that StanChart has “made another big hire” into its Singapore technology team. Mr Craig Corte was appointed as the managing director and head of digital platforms and innovation while Mr Brendan Royal was appointed as its Singapore-based global chief architect. Mr Corte is from Canada while Mr Royal from Australia.

“The hires of Corte and Royal from Canada and Australia, respectively, suggest that banks in Singapore are still able to take on foreign tech professionals for senior leadership roles, despite the overall decline in the issuance of Employment Passes since the onset of Covid-19,” eFinancialCareers reported.

Regardless if these positions pay more than $30,000 or not, the question Singaporeans should be asking is –

  • “Does StanChart have any succession planning or talent development to give Singaporeans more opportunities and exposure to nurture their skills?”
  • “Does StanChart listen to Mr Tharman’s call for its Singaporean staff to build up experience locally and beyond, so that they can take on larger responsibilities?”

One might also ask, to what extent does StanChart’s hiring practices represent the companies at large in Singapore.

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Singapore’s Manpower Ministry engages Dyson over last-minute layoff notice to union

The Ministry of Manpower (MOM) has engaged with Dyson following the company’s one-day notice to a labour union regarding retrenchments. MOM emphasised the importance of early notification to unions as per the Tripartite Advisory on Managing Excess Manpower. It noted that while Dyson is unionised, the retrenched professionals, managers, and executives (PMEs) are not covered by the union’s collective representation.

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SINGAPORE: The Ministry of Manpower (MOM) has initiated talks with Dyson after the company gave just one day’s notice to a labour union about a retrenchment exercise.

The United Workers of Electronics and Electrical Industries (UWEEI) had earlier requested a conciliation session to address the issue.

According to MOM’s statement on 3 October, the ministry met with Dyson on 2 October and plans to meet with the UWEEI to facilitate an amicable solution.

The dispute arose after UWEEI’s executive secretary, Patrick Tay, voiced the union’s disappointment that it was notified of the retrenchment just a day before Dyson laid off an unspecified number of workers on 1 October.

Tay expressed concern that the short notice did not allow enough time for discussions to ensure a fair and progressive retrenchment process.

He also highlighted that more time would have enabled better support for the affected employees.

According to MOM, under the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment, unionised companies should give unions early notice when informing employees of retrenchments.

However, while Dyson is unionised, the professionals, managers, and executives (PMEs) who were laid off are not covered by the union’s collective representation.

“Hence the period of notice to inform UWEEI is negotiable,” MOM said.

However, MOM acknowledged that insufficient notice was given in this instance and stated its intent to work with both parties to improve communication going forward.

The Ministry also emphasised that the formula for calculating retrenchment benefits for PMEs does not necessarily have to follow the same criteria applied to rank-and-file workers.

The specific terms of such benefits are subject to negotiation between the union and the company, a position that has been agreed upon within Singapore’s tripartite framework.

MOM reaffirmed that it would mediate the issue if needed.

In its 3 October statement, MOM reiterated Singapore’s commitment to supporting businesses like Dyson that choose to invest in the country.

“We will work with these companies, economic agencies and NTUC to ensure that we remain both pro-worker and pro-growth.”

Mr Tay, who is also a Member of Parliament from ruling People’s Action Party (PAP), in an video message posted on UWEEI’s official Facebook page, urged Dyson executives affected by the retrenchment to seek assistance from the union in ensuring that their benefits are fair.

However, he noted that Dyson has not shared crucial details, such as the job levels of those impacted, which complicates the union’s efforts.

Tay explained that some affected workers had been instructed to keep their retrenchment packages confidential or risk losing them, further adding to the union’s concerns.

Although the union believes the package aligns with UWEEI’s standard of one month’s salary per year of service, Tay stated that uncertainty remains over whether the package is capped.

“That is why we are concerned that we have not received more information from Dyson on who the affected workers are or their job levels as Section 30A of the Industrial Relations Act also allows UWEEI to represent executives individually on retrenchment benefits.”

In response to the ongoing situation, UWEEI has established a task force to provide guidance to the retrenched employees, particularly in terms of job searches.

Tay also issued a public call for Dyson employees, especially PMEs, to join UWEEI so the union could better support them during such retrenchment exercises.

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Chris Kuan questions Singapore’s foreign workforce dependency and official statistics

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Former Singaporean banker Chris Kuan has raised important questions about the extent of Singapore’s dependency on foreign labour in a recent Facebook post.

His analysis, which critiques how official statistics are compiled, refers to the data released from the latest Population in Brief report published by the National Population and Talent Division (NPTD) of the Prime Minister’s Office.

According to the report, which was highlighted by Channel News Asia on 24 September 2024, Singapore’s total population exceeded six million for the first time, largely driven by growth in the non-resident population.

Of the 6.04 million people residing in Singapore as of June 2024, 1.86 million were non-residents, including foreign workers, domestic helpers, dependents, and international students.

Kuan focuses on this breakdown, which revealed that the non-resident population grew by 5% in the past year, with work permit holders and foreign domestic workers making up a significant share.

Work permit holders alone accounted for 44% of the non-resident population, while foreign domestic workers made up 15%.

These figures, he argues, illustrate the nation’s increasing reliance on foreign labour, which is often overlooked when discussing economic data.

In his analysis, Kuan estimates that over 2 million jobs in Singapore are held by foreigners, including Foreign Domestic Workers (FDWs).

According to the Department of Statistics, the number of employed persons is 3.8 million, with 2.4 million being resident workers. However, there is no breakdown of the resident workers into Singaporeans and Permanent Residents who are foreigners—even when asked in Parliament.

He noted that this number represents approximately 51% of the total workforce. When excluding FDWs from the calculation, foreign workers still account for 44% of the country’s jobs.

According to Kuan, this figure underscores how heavily the nation depends on non-resident workers, with more than half of these foreign jobs being in the Work Permit and FDW categories.

Kuan also critiqued the way Singapore’s official statistics are compiled, particularly by the Singapore Department of Statistics (SingStat).

He pointed out that economic measures such as the Gini coefficient, which tracks income inequality, as well as median household income and salaries, are typically calculated based on the resident population alone. This exclusion of nearly 30% of the population, which includes 1.1 million work permit holders and FDWs, creates a skewed perception of the nation’s economic reality.

The CNA report similarly notes that the non-resident population is subject to fluctuations based on Singapore’s social and economic needs, with sectors such as construction and marine shipyard work seeing the largest growth.

The Population in Brief report also highlights that the country’s resident employment has grown in sectors such as financial services, information technology, and professional services, which are predominantly filled by local workers.

Kuan argued that this selective focus on residents when reporting statistics results in an overly positive picture of Singapore’s wealth and economic performance.

He illustrated this point by referencing an online comment made in a Facebook group for Malaysians and Singaporeans living in Japan.

The commenter had falsely claimed that cleaners in Singapore earned S$3,000 per month, higher than the starting salary of fresh graduates in Japan.

Kuan debunked this claim, explaining that the actual salary for a cleaner in Singapore is closer to S$1,500, while fresh graduates in Japan typically earn around S$2,500 or more. He suggested that such misrepresentations stem from the limited perspective offered by focusing only on residents in economic data.

In his post, Kuan expressed concern that many Singaporeans have been “brainwashed” by these incomplete statistics, which exclude the foreign workforce that contributes substantially to the country’s GDP.

He emphasised that much of Singapore’s success in terms of wealth and GDP growth cannot be fully understood without acknowledging the role of non-residents, including Employment Pass holders, S Pass holders, Work Permit holders, and FDWs, as well as foreign students and dependents.

Kuan’s critique has added fuel to the ongoing debate about Singapore’s demographic and labour policies.

As the country continues to rely on foreign workers to support economic growth, the balancing act between resident and non-resident employment remains a central issue.

The CNA report noted that the Singapore government has consistently maintained that the foreign workforce is crucial to complementing the local workforce and allowing businesses to access a broader range of skills from the global talent pool.

However, Kuan’s post raises the question of whether the full economic impact of this dependency is being adequately reflected in public discourse and official statistics.

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