news Operational risk Splash247
Splash canvasses experts on how to make immigration more conducive to financial success in the Lion Republic in the latest chapter from our brand new, 60-page Singapore special. It remains one of the hot-button issues for Singaporeans – as it has been for decades – how to marry immigration laws with demographic realities. Singaporeans find themselves caught between a rock and a hard place when it comes to mapping out its workforce numbers – locals clamour for greater restrictions from overseas, while authorities have to work through labour shortages. Singapore’s foreign workforce is now 7% bigger than in 2019. Singapore is loosening limits on low- and mid-skill visas for jobs aligned with the country’s strategic economic priorities. Singapore shares this aim with Japan, which in 2019 launched a programme for letting in “specified skilled workers” in industries afflicted by shortages, such as nursing. From September, overseas employees on a work visa will need to fulfil the city-state’s new points-based system, and earn a minimum salary threshold to stay in their jobs. Points are awarded for how a candidate’s salary compares to Singaporean peers, along with their education and skills, and whether their nationality improves the diversity of the firm. It puts the onus on employers to prove why they need to hire foreigners. It’s difficult to get enough qualified people to Singapore Singapore is no longer a place where foreign talent can start or develop their careers, the way it used to be about a decade ago. Entry-level and the middle of the market jobs are being reserved for the resident population. For many sectors, it makes sense to hire Singaporeans. The population is extremely well-educated and regularly scores among the highest in the world in maths, reading and science. It has historically struggled with instilling a culture of creativity in the exam-driven curriculum, but there are efforts to change that. Still, for a government that trumpets an open and free economy, the perception that it is restricting jobs for foreigners, after a history of being relatively easy, could do more harm than good. Maritime shortages Peter Schellenberger, who runs consultancy Novamaxis, believes that with elections imminent the government and opposition have to talk tough on immigration. However, he maintains that the chat that the foreign workforce is a threat to Singaporean sustainable jobs is not well founded, especially in industries like F&B, retail, maritime and shipyards where even with great efforts to attract and upskill there is not enough of a local workforce available. “Embracing qualified people from around the world including trainees and making them part of the Singapore success story will be very necessary,” Schellenberger says. Schellenberger knows of many companies that are very frustrated by the ever increasing barriers of minimum salaries and qualifications to bring in people that guarantee company growth. “The risk is that such players will chose other locations in the process,” Schellenberger warns. Therefore lower barriers and transparent criteria for decision-making processes such as, for example, in Canada would be much desirable, he says. Policy adjustments To foster a more conducive business environment in Singapore, Ryan Kumar, who heads up local recruitment firm Direct Search Global, advocates several adjustments to immigration policies. First, expediting the processing time for work permits and visas would significantly
Foreign talent and Singapore
Splash247
Read full article at Splash247 →
Opens Splash247 in a new tab