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Written Answer to PQ on FW Concentration and Nationality

NOTICE PAPER NO. 2756 OF 2024 FOR THE SITTING ON 7 MAY 2024
QUESTION NO. 6011 FOR ORAL ANSWER

MP: Mr Leong Mun Wai

To ask the Minister for Manpower since 2014, what is the annual percentage of companies with (i) more than 30% of foreign PMETs employed and (ii) employees of a single foreign nationality accounting for more than 20% of all
PMETs employed.

Answer:

We have made a distinction in the statistics for small firms with fewer than 25 PMETs, and larger firms with 25 or more PMETs. This is because small firms have a very small PMET base and their proportion of foreign PMETs will be prone to fluctuations. The median number of PMETs in small firms which hire PMETs is only 2. This means that even with 1 foreign PMET, the median small firm would have exceeded the 30% foreign PMET share, or 20% single nationality share. It is important to look at the workforce profile of larger firms with 25 or more PMETs, as these firms tend to have more stable workforce profiles and hire the majority of Employment Pass (EP) holders. While small firms account for 96% of all firms, they only hire about 30% of EPs.

2. Over the last decade, the percentage of larger firms with a foreign PMET share of 30% or more has remained constant at 20%. On average over the decade, about 20% of small firms have a foreign PMET share of 30% or more but the 2023 figure was higher at 28%.

3. On the percentage of firms with employees of a single foreign nationality accounting for more than 20% of all PMETs employed, it has remained constant at 10% over the decade for larger firms. For small firms, it is about 20% on average over the last decade and the figure increased to 30% in 2023.

4. MOM has introduced the points-based Complementarity Assessment Framework (COMPASS) to enable employers to select high-quality foreign professionals while improving workforce diversity and building a strong local core. This has been in place for new Employment Pass applicants since September 2023, and will apply to renewal applicants from September 2024. MOM will continue to closely monitor the workforce profile of all firms and adjust our policy levers where appropriate.