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Written Answer by Minister for Manpower on Plans to Increase Percentage of Migrant Domestic Workers From Other Countries in Light of Indonesia's Zero Placement Fee Policy

Foreign manpower

NOTICE PAPER NO. 350 FOR THE SITTING ON 5 APRIL 2021

QUESTION NO. 610 FOR WRITTEN ANSWER

MP: Mr Melvin Yong Yik Chye 

To ask the Minister for Manpower (a) in light of Indonesia's decision to implement a zero placement fee policy, whether the Ministry expects other countries, such as the Philippines and Myanmar, to implement similar moves; (b) whether the Ministry has plans to work with employment agencies to increase the percentage of FDWs from the current approved list of source countries that have a low presence here in Singapore, such as Thailand and Cambodia; and (c) whether there are plans to expand the list of approved source countries for FDWs.

Answer:

  1. Indonesia informed employment agencies (EAs) in Singapore of its intent to implement a “zero placement fee” policy in 2020. This meant that the placement fee payable to the EAs in Indonesia would be borne by the employers instead of the Indonesian migrant domestic workers (MDWs). The “zero placement fee” policy has not taken effect in Indonesia yet. Indonesia is not the first country to propose a “zero placement fee” policy. The Philippines government introduced a similar policy since 2006. While employers of Filipino MDWs typically pay higher EA service fees than those who hire MDWs of other nationalities, there is still a sizeable demand for Filipino MDWs today.

  2. When the Indonesian “zero placement fee” policy kicks in, some EAs here may charge higher service fees to employers hiring Indonesian MDWs. The Ministry of Manpower (MOM) will ensure that employers have full information of the cost implications before making their hiring decisions. EAs are already required to provide a clear breakdown of the fees charged to the employers.

  3. We also have in place a good mix of approved source countries for MDWs. Indonesia, Philippines, Myanmar and India are the source countries which are more popular with employers here. Expanding the list of approved source countries is only useful if there is employer demand. For example, employers have been able to bring in MDWs from Cambodia since 2016, but interest has been relatively low.

  4. In any case, it will be unwise to rely only on dedicated-MDWs to meet our housekeeping and caregiving needs. In this regard, MOM piloted the Household Support Scheme in 2017 and there are now more than 70 companies tapping on the scheme to offer part-time household services, such as home cleaning. Additionally, families caring for the elderly or young children can also tap on eldercare services and, child- and student-care centres.