Fair Consideration rule ‘can help banks develop S’pore core’

SINGAPORE — The local banking sector is an area where the newly announced Fair Consideration Framework (FCF) can help nurture a strong Singapore core, which is vital for the sector to remain sustainable in the long term.

This is according to Member of Parliament Foo Mee Har, who also sits on the Government Parliamentary Committee (GPC) for Finance and Trade and Industry.

Statistics show that those employed in the sector are predominantly local, she said, “but some banks can do more, and Singaporeans should be offered the ‘first bite of the cherry’ for jobs they are qualified to do”.

“There also needs to be a systematic approach to developing Singaporeans for senior and specialist positions,” Ms Foo added.

“The FCF is a relatively light touch, but it’s definitely a step in the right direction.”

The FCF was announced by the Ministry of Manpower earlier this week and takes effect from Aug 1 next year. Under the framework, companies must advertise job vacancies on a government Web portal for 14 days before they can offer the positions to Employment Pass (EP) holders.

The rule aims to ensure Singaporeans are given due consideration by employers for high-level and professional jobs — but it will also benefit firms, said Ms Foo.

“All good organisations will understand that, if they have a strong local core, they can have a much more resilient and sustainable business,” she added.

“So developing a Singapore core is not something you do out of goodwill. It is good for business, and good companies will have that discipline.”

Banks TODAY spoke to reiterated their commitment to this agenda.

OCBC — which employs about 6,000 people here — is not concerned about the new framework.

“We do not foresee any significant impact (that will be made) by the new framework. Singaporeans and permanent residents currently form 94 per cent of our workforce in Singapore. In fact, 80 per cent of our employees here are Singaporeans,” said Ms Jacinta Low, Head of Human Resources Planning at OCBC.

The bank recently opened a S$60 million training centre in Singapore, which Ms Low said will help sustain a pipeline of leaders and specialist talent among Singaporeans.

At Citi, the largest banking employer in Singapore with some 10,000 staff members, about 18 per cent of employees hold a work pass, said Head of Corporate Affairs Adam Rahman.

“We are committed to hiring and developing local talent. However, as a global institution serving international clients, it is essential that we strike the right balance,” he added.

“It is important to have some foreign talent with global perspectives, expertise and skills to complement the overall development of Singapore as an international hub and also enable the transfer of skills to local staff.”

Meanwhile, MP Jessica Tan, who chairs the GPC for Finance and Trade and Industry, stressed that the new framework is not targeting any specific industry, and perceptions that the banking sector is biased towards hiring foreigners might be “anecdotal”.

“What’s important is that talent — foreign and local — is scarce in Singapore. It’ll be beneficial for every company and sector to give a fair look at the talent that is in Singapore,” she said.

“The new framework will ensure opportunities are made available for Singaporeans but, ultimately, it’s also to ensure that the best people are available for a job.”