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Service Literacy Test to Up Service Standards in Retail, Hotel and F&B Industries

Additional criterion from July for work permit holders to obtain skilled levy status

Foreign manpower Skills, training and development

23 January 2010

  1. The Ministry of Manpower (MOM) has appointed the Singapore Workforce Development Agency (WDA) to develop and administer an English language proficiency test for foreign workers in the Hotel, Retail and Food and Beverage (F&B) industries. With the new criterion, MOM aims to enhance service standards, raise productivity levels and the quality of the foreign workforce in Singapore.

    Background
  2. From July 2010, work permit holders in the three industries will have to pass the Service Literacy Test (SLT) in order to qualify for skilled levy status. This was first announced by Minister of State for Manpower and Trade & Industry, Mr Lee Yi Shyan in December 2009. The new criterion is in addition to all other skilled levy requirements, such as possessing the requisite academic qualifications or passing certain skill/trade tests1.

    Service Literacy Test
  3. The test will apply to new non-Malaysian work permit holders, as well as existing non-Malaysian work permit holders who have received their renewal notice from MOM.
  4. The test was developed based on general work settings in the three industries. Work permit holders will have to pass both components of the test – Speaking and Listening. In the Speaking test, work permit holders will be asked questions through a pre-recorded video clip and respond by speaking into an attached microphone.  A computer system captures the responses for scoring later. In the Listening test, work permit holders will listen to a conversation, instruction or comment, and subsequently be asked to select a suitable response from a list of multiple-choice answers.  Please refer to Annex A for more information on the test details.
  5. While the additional criterion will be implemented only in July this year, employers will be allowed to register for the test from April 2010.  This is to ensure that employers will have sufficient time to consider sending their work permit holders for English language courses2 before they sit for the SLT.

    Call to Up Service Standards and Productivity Levels
  6. "Productivity and service excellence go hand-in-hand. The Services sector3 is an important engine of growth in the Singapore economy, accounting for nearly 70% of nominal gross domestic product (GDP) and total employment4, but its productivity growth lags that of other industries such as Manufacturing. With the opening of the two integrated resorts, the Services sector is likely to expand this year. This is an opportune time to raise service standards and productivity levels with the introduction of the service literacy test," said Minister of State for Manpower and Trade & Industry, Mr Lee Yi Shyan.
  7. Work permit holders who pass the test are expected to be able to listen and understand job-related communications in English and to respond appropriately in English while handling routine tasks at the workplace. With a basic proficiency level, Services workers can be expected to perform their jobs more effectively and customers will benefit from the improved service standards. Employers are likely to see increased business activity as satisfied customers continue to patronise their establishments. Work permit holders who are able to speak basic English will also be able to communicate with local workers and integrate better in their workplaces as well as the society. This results in an all-win situation for workers, customers and employers.

    An Incentive for Employers
  8. Employers who hire work permit holders who pass the test and meet all other requirements will be placed on skilled status and subjected to the skilled levy. The monthly cost savings derived from the lower levy rates will encourage and incentivise companies to hire better skilled foreign workers while helping businesses deliver better service and raise their productivity.

    More Information
  9. A dedicated website for the SLT registration and other related information will be available from mid-February 2010. More details on the location of the SLT test centre will be announced later.
  10. For more information on the SLT, please contact WDA at  (65)6883 5885 or Email: wda_enquiry@wda.gov.sg.
  11. More information on work permit matters is available on the MOM Work Pass page.

1 A skilled work permit holder is one who has at least a:

  • NTC-3 (Practical) Trade Certificate or ITE Skills Evaluation Certificate (Level 1) that is relevant to the work permit holder's occupation
  • Diploma for work permit holders from People’s Republic of China

2 There are numerous courses available for workers to improve their English language proficiency and service skills before they sit for the Service Literacy Test. An example would be the Basic Conversational English for Migrant Workers. Please refer to Annex A for more details.

3 The services sector includes wholesale and retail trade, accommodation and food & beverage services, transport and storage, information and communications, financial- and insurance-related services, real estate and business services, community, social and personal services.

4 The sector contributed 68.8% of nominal gross domestic product (GDP) and 67.3% of total employment in 2008.
Source: Department of Statistics – Economy Survey Series “The Services Sector”, Reference Year 2007

Annex A-Media Release for EL Announcement (230110).pdf