Oral Answer by Minister for Manpower Dr Tan See Leng to PQs on Foreign Workforce Policies
NOTICE PAPER NO. 1378 OF 2022 FOR THE SITTING ON 3 OCTOBER 2022
QUESTION NO. 3423 FOR ORAL ANSWER
MP: Ms Jessica Tan
To ask the Minister for Manpower in light of the need to attract top global talent for key sectors in Singapore (a) whether there are initiatives to bring top overseas Singaporean talent back to Singapore; (b) what is the success rate in attracting top overseas Singaporeans to relocate and work in key sectors in Singapore; and (c) whether there is support to help top overseas Singaporean talent and their families to relocate and transition back in Singapore.
NOTICE PAPER NO. 1378 OF 2022 FOR THE SITTING ON 3 OCTOBER 2022
QUESTION NO. 3424 FOR ORAL ANSWER
MP: Ms Jessica Tan
To ask the Minister for Manpower (a) what is the success rate in growing our local manpower talent for the key sectors in Singapore; and (b) whether there is data to show that Singaporeans are succeeding in getting quality jobs in these key sectors.
NOTICE PAPER NO. 1378 OF 2022 FOR THE SITTING ON 3 OCTOBER 2022
QUESTION NO. 3433 FOR ORAL ANSWER
MP: Ms Hazel Poa
To ask the Minister for Manpower whether the Ministry has any plans to impose personal responsibility on human resource professionals in Singapore to comply with all manpower rules and regulations, such as the Fair Consideration Framework and Complementarity Assessment Framework.
NOTICE PAPER NO. 1390 OF 2022 FOR THE SITTING ON 3 OCTOBER 2022
QUESTION NO. 3482 FOR ORAL ANSWER
MP: Mr Chua Kheng Wee Louis
To ask the Minister for Manpower (a) for organisations that have made job postings on the Government's MyCareersFuture portal, whether they are required to notify the Ministry on the outcome of a job posting when it is subsequently delisted or when the role is filled; (b) if so, do the numbers suggest that ample efforts have been made to give fair consideration to local candidates; and (c) if not, why not.
NOTICE PAPER NO. 1390 OF 2022 FOR THE SITTING ON 3 OCTOBER 2022
QUESTION NO. 3483 FOR ORAL ANSWER
MP: Mr Chua Kheng Wee Louis
To ask the Minister for Manpower (a) in the last five years, what is the number of instances where organisations have been found to have placed job advertisements without fairly considering applicants, violating the Fair Consideration Framework; and (b) what is the range of regulatory actions taken against such organisations.
NOTICE PAPER NO. 1341 OF 2022 FOR THE SITTING ON 3 OCTOBER 2022
QUESTION NO. 3508 FOR ORAL ANSWER
MP: Mr Gerald Giam Yean Song
To ask the Minister for Manpower whether there are plans to review the Employment Pass (EP) scheme to introduce a new dependency ratio ceiling for the bottom half of income earners among EP holders to encourage employers to enhance their Singaporean workforce by hiring and training more Singaporean talent and transferring skills from their foreign employees to the local workforce.
NOTICE PAPER NO. 1396 OF 2022 FOR THE SITTING ON 3 OCTOBER 2022
QUESTION NO. 3531 FOR ORAL ANSWER
MP: Mr Yip Hon Weng
To ask the Minister for Manpower (a) how many companies have been placed under the Tripartite Alliance for Fair & Progressive Employment Practices’ watchlist in 2021 due to possible breaches of the Fair Consideration Framework (FCF); (b) among those on the watchlist, how many have been found to have breached the FCF and debarred from hiring foreign workers and renewing their foreign workers’ work passes; and (c) how are employment agencies that breach the FCF dealt with.
NOTICE PAPER NO. 1400 OF 2022 FOR THE SITTING ON 3 OCTOBER 2022
QUESTION NO. 3561 FOR ORAL ANSWER
MP: Mr Liang Eng Hwa
To ask the Minister for Manpower (a) in the past five years, how many employment pass (EP) holders have been employed in the technology and non-technology related industries respectively; and (b) whether useful information can be drawn from the number of EPs issued relative to the areas of skill and expectation mismatches and biasness in hiring practices.
Answer:
1. I delivered a Ministerial Statement last month on “Strengthening Singapore’s Position as a Global Hub for Talent”. In the statement, I outlined how we intend to strengthen Singapore’s position as a global hub for talent and addressed questions around the enhancement of our work pass framework, including the introduction of the Overseas Networks & Expertise, or ONE Pass. Members have subsequently filed a number of Parliamentary Questions on three related issues. First, on how we ensure a complementary foreign workforce. Second, on our concurrent efforts to develop our local talent pipeline. And last but not least, on our efforts to safeguard fair consideration. I am taking them together, so that we can address the issues holistically. I will address questions which are more technical in nature on specific policies separately.
2. First and foremost, ensuring a complementary foreign workforce. Members in this House generally acknowledge the need to attract top talent, as per the intent of the ONE Pass. Some Members have, however, raised questions on our broader foreign workforce policy.
3. At the Employment Pass, or EP level, we focus on ensuring that the EP holders are of good quality. And we do not impose quotas. To answer Mr Gerald Giam’s question on whether there are plans to review the EP framework to introduce a quota for the bottom half of income earners among EP holders, we have explained our rationale before – doing so will restrict our ability to compete and hold our companies back.
4.Our emphasis on quality was reinforced when the Ministry of Manpower (MOM) announced significant adjustments to our EP framework at this year’s Committee of Supply debate. First, to benchmark the EP qualifying salary to the top one-third of our local Professionals, Managers, Executives and Technicians, or PMET workforce. And second, to introduce a new points-based Complementarity Assessment Framework or COMPASS from 1 September 2023 to holistically evaluate EP applications for complementarity. Companies whose candidates cannot meet the EP qualifying salary or pass COMPASS will have to apply for an S Pass instead, where they will be subject to a quota. This is a neater solution than what Mr Giam is suggesting. Compared to his suggestion where some EP holders are subjected to a quota while others are not, our current approach has the merit of keeping the positioning and criteria of each pass type clear, and overall work pass framework simpler for businesses.
5. Being open, being connected, and bringing in complementary global talent, has helped to grow the overall pie for Singapore and more good job opportunities for locals. Ms Jessica Tan asked if there is data to show that Singaporeans are succeeding in getting quality jobs in key sectors. At the same time, Mr Liang Eng Hwa asked about the number of EP holders in the Information & Communications sector, compared to other sectors. The Information & Communications sector has been a fast-growing one, and is a sector that faces talent shortages worldwide. In Singapore and elsewhere, employers have had to tap into the global marketplace for skills in shortages. In 2021, the ICT sector accounts for one-fifth, about 20%, of our EP stock. This has increased from one-sixth in 2016, thus reflecting the growing digital needs of our economy. The growth of the Information & Communications sector has also resulted in the creation of more jobs for our locals – in the same timeframe, we saw strong growth in the number of local PMETs by 34,400. Median local wages in the sector also continue to increase. Therefore, we can see quite clearly that this is not a zero-sum game.
6. At the macro level, the data is also encouraging. More locals are in higher-skilled PMET jobs. The proportion of resident workers in PMET jobs increased from 55% in 2016 to 62% in 2021. Across the board, local workers have experienced sustained wage growth. The median income of full-time employed residents has grown from $4,100 to $4,700 over the same period, an increase of 2.1% per annum in real terms. We have also seen improved job quality and better wages at the lower end, with the income of full-time employed residents at the 20th percentile increasing 2.7% per annum in real terms over the same period. Mr Leong Mun Wai also filed a question in a subsequent sitting specifically on local postgraduates, a group that is very likely to be taking up or even creating these high-quality roles. Their average unemployment rate has remained lower than that of all other locals over the past five years.
7. We have managed to create good employment outcomes because we continue to be an attractive place for companies to do business. By combining and complementing local and foreign expertise, we can attract more investments and we can create many more good jobs and career choices for Singaporeans. Conversely, if companies do not have access to the complementary foreign manpower that they need, they may exit Singapore, and take away the jobs that they are able to create for Singaporeans with them. When it comes to foreign workforce policies, the way to advance is to strike a very careful, as well as a very delicate balance.
8. Next, on developing our local talent pool and workforce. Local talent development already happens organically in tandem with economic growth. As businesses expand their investments here, they will need to find manpower to fill various roles and invest in training and upgrading their workers. By working in leading firms and alongside global talent, our local workers will also gain exposure to new ideas and best practices from around the world.
9. The Government as well as our tripartite partners help to catalyse this process. We work with industry stakeholders to chart out transformation plans across 23 sectors through the Industry Transformation Maps, or ITMs, which include strategies to prepare our workers for higher value-added jobs in each sector. We have also put in place a whole eco-system of programmes and schemes which businesses can tap on to prepare their workers for jobs of the future. For instance, we recommend that companies work with NTUC to set up Company Training Committees (CTCs) to help drive business transformation and training plans – the Government has set aside a $70 million budget for the NTUC CTC grant. Employers can also tap on subsidized industry-relevant training courses and reskilling programmes for mid-career workers. This includes Workforce Singapore (WSG)’s Career Conversion Programmes (CCPs). Ms Mariam Jaafar filed a question for a later Sitting on how work experience and other certifications are considered aside from formal academic qualifications in eligibility requirements for CCPs. For some CCPs, academic requirements are put in place to ensure that the trainee is able to cope with the training, particularly where the training is very technical in nature. Applicants who do not meet the academic requirements may still be accepted into the programme if they have relevant alternative qualifications or work experience.
10. Ms Jessica Tan also asked about our initiatives to bring back top overseas Singaporean talent. Overseas Singaporeans who have developed the ability to thrive in a global environment, gained industry-relevant experience, and built extensive networks can make significant contributions to our economy and pass on their knowledge to other Singaporean talent. Fundamentally, strengthening Singapore’s position as a global hub for talent which is brimming with exciting opportunities is self-reinforcing – it will help to bring back overseas Singaporeans who are keen to contribute and be a part of this ecosystem. The Government actively engages overseas Singaporeans to keep them connected to home, so that they can make an informed decision about whether and when to return to Singapore. The Singapore Global Network (SGN) within EDB plays a key role in broadening and deepening our overseas Singaporean network through digital engagement, as well as partnerships with private, public and community organisations to deliver engagement initiatives, such as networking and community events. These engagements also allow overseas Singaporeans to serve as our valuable connectors and ambassadors in overseas markets, helping to spread Singapore’s good reputation. For returning Singaporeans, SGN and other agencies offer a variety of online resources to facilitate a smooth transition, including information on education, working and living, and relocating back to Singapore. For example, the Ministry of Education (MOE)’s website contains information about school admissions for returning Singaporean children.
11. Lastly, on fair consideration. There is no place for discrimination in Singapore. MOM does not and will not tolerate unfair hiring practices, and employers who do not give locals a fair chance will face stiff penalties. The Fair Consideration Framework, or FCF, sets out requirements for all employers to consider local workers fairly for job opportunities. Work is underway to enshrine this in legislation.
12. Mr Yip Hon Weng asked about the number of companies placed on the FCF Watchlist. Firms are placed on the FCF Watchlist if they have an exceptionally high share of foreign PMETs compared to their industry peers, or a high concentration of a single foreign nationality source. But members of the House, let me reiterate this. Firms placed on the FCF Watchlist have not flouted any rules. Instead, what the Tripartite Alliance for Fair & Progressive Employment Practices, or TAFEP, does is to engage these companies to help them improve their workforce profiles. Since 2016, MOM has engaged a total of more than 1,700 employers under the FCF.
13. One other limb of FCF is the job advertising requirement. Employers must first advertise on MyCareersFuture, or MCF, and fairly consider all candidates, before submitting an EP or S Pass application. Mr Louis Chua asked whether companies need to notify MOM on the outcome of a job posting when it is subsequently delisted or when the role is filled. We do not require companies to do so, just like how they need not do so for other job portals. We are conscious of the fact that we should not add administrative burden and make it onerous for employers to use MCF.
14. While the number of cases of discriminatory practices is small, MOM will continue to remain vigilant. Besides investigating complaints lodged with TAFEP, we also use data analytics to identify suspicious cases for further investigation. And where employers are found to be discriminatory, MOM will not hesitate to take action against such employers. In response to Mr Louis Chua’s and Mr Yip Hon Weng’s questions, from 2017 to 2021, MOM took enforcement actions against approximately 300 companies. The regulatory actions included issuance of warning, and being barred from hiring or renewing foreign workers.
15. Ms Hazel Poa asked whether MOM intends to impose personal responsibility on human resource professionals in Singapore to comply with all manpower rules and regulations. I would like to remind Ms Poa that hiring decisions are not made by HR professionals alone. Senior management as well as line managers are also involved in these hiring decisions. Today, MOM can take action against culpable individuals and decision-makers for non-compliance of MOM’s rules and regulations. This includes HR professionals as well as business leaders. Employers, business leaders and HR professionals all play an important role in ensuring that their companies’ employment practices are fair and that they comply with regulations and the Tripartite Guidelines. All employers in Singapore must comply with not just the letter but with the spirit of our laws and regulations on fair hiring, and adopt good HR practices. The responsibility placed on employers as well as decision makers to uphold workplace fairness is also being discussed by the Tripartite Committee which is deliberating the scope and design of workplace fairness legislation. Beyond enforcement, we must also enable and we must also equip HR professionals to better support their companies.
16. Mr Speaker Sir, in summary, we have a three-pronged strategy to support good employment outcomes – first, to safeguard the complementarity of our foreign workforce, second, to invest in developing our local workforce, and third, to ensure fair consideration for locals. All our Government policies, all of our schemes as well as programmes work together to achieve one goal: to create opportunities for locals, at all and every level of the workforce. I thank Members for their questions, and assure them that MOM will continue to update our suite of policies regularly in line with this objective.