MOM Unveils New Package of Foreign Workforce Measures

Employment creation is hitting another record high in 2007. The overall unemployment rate has fallen to 1.7% in September 2007, the lowest in almost a decade. A record proportion of the resident population has secured employment, especially women and older residents. Far more jobs are being created than locals can fill. Following rapid gains in the past two years, the growth in resident labour force eased in 2007, due to a smaller pool of remaining residents able to work.

2.   Amidst this tight labour market, companies have been giving feedback that it is increasingly harder to find workers, especially locals. The Ministry of Manpower (MOM) will therefore implement a package of foreign workforce measures to support the manpower needs of the growing economy.

For All Sectors – S Pass

3.   To help meet the growing industry demand for mid-skilled foreign workers, companies will have greater access to S Pass holders. With effect from 1 January 2008, the S Pass quota for all sectors will be increased from 15% to 25%. The new S Pass quota will come entirely from companies' Work Permit quota which will be increased for all sectors. Companies can therefore employ more S Pass holders, in lieu of Work Permit holders, hence improving the quality of their foreign workforce.

Construction, Process and Marine Sectors

4.   The Building and Construction Authority (BCA) expects the Construction sector's annual output to rise by $19-$22 billion. Given robust growth in Asia's energy markets and global demand for petrochemicals, the process and marine sectors are experiencing rapid growth. To ease the manpower pressure in these sectors, MOM will:

(i) Raise the Dependency Ratio for the Construction and Process sectors from 1 local worker : 5 foreign workers, to 1 local worker: 7 foreign workers, from 1 January 2008;

(ii) Reduce the work experience requirement for non-Man Year Entitlement workers in Construction from 4 to 2 years from 1 March 2008; and

(iii) Raise the Dependency Ratio for the Marine sector from 1 local full-time worker: 3 foreign workers, to 1 local worker: 5 foreign workers, from 1 January 2008.

Manufacturing and Services Sectors

5.   Both Manufacturing and Services sectors are expected to enjoy continued strong employment growth.

6.   Companies in these sectors will be allowed a higher proportion of foreign workers in their workforce. The Manufacturing Dependency Ratio will be increased by a further 5% to 65%. The Services Dependency Ratio will also be increased by a further 5% to 50%. Both these changes will take effect from 1 January 2008, and details are below:

Enhancements to the Personalised Employment Pass (PEP) Scheme

7.   The Personalised Employment Pass (PEP) scheme, launched earlier this year, has been well received. The scheme facilitates skilled professionals holding Employment Passes to continue working in Singapore, as it is granted on the strength of an individual's own merits, rather than being tied to a specific employer. PEP holders are allowed to remain in Singapore for up to six months between jobs to evaluate new employment opportunities.

8.   To strengthen our global talent attraction and retention efforts, refinements will be made to the PEP scheme. Foreign professionals whose last drawn fixed monthly salary overseas was at least S$7,000 will be eligible for a PEP. The PEP will also be granted to former P1 Employment Pass holders upon application.

9.   These changes will take effect from 1 March 2008. Existing and new P1 pass holders working in Singapore that apply for the PEP ahead of the 2-year requirement will be accorded in-principle approval. They can apply to take up the PEP at the end of 2 years on their current P1 pass.

 Summary Table of Foreign Workforce Measures and Effective Dates