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New scheme to allow firms to raise foreign worker quota temporarily if they commit to innovation, training locals

SINGAPORE — Companies that are deemed to contribute to Singapore's economic priorities and that commit to hiring and training resident workers will soon be allowed to temporarily hire S Pass and work permit holders beyond the prevailing foreign worker quotas.

A new scheme aims to support the growth of businesses that contribute to Singapore through ambitious investment or internationalisation activities.
A new scheme aims to support the growth of businesses that contribute to Singapore through ambitious investment or internationalisation activities.
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  • A new Manpower for Strategic Economic Priorities scheme will give eligible firms more S Pass and work permit quotas of up to 5 per cent of their base workforce headcount
  • They will be subject to a cap of 50 workers for each firm
  • Employers will be eligible if they contribute to the country’s economic priorities, or commit to hiring or training resident workers

SINGAPORE — Companies that are deemed to contribute to Singapore's economic priorities and that commit to hiring and training resident workers will soon be allowed to temporarily hire S Pass and work permit holders beyond the prevailing foreign worker quotas.

Firms that qualify for this new Manpower for Strategic Economic Priorities (M-SEP) scheme will be able to obtain more S Pass and work permit quotas of up to 5 per cent of their base workforce headcount, subject to a cap of 50 workers for each firm. The S Pass is for mid-level skilled foreign workers and the work permit is for migrant workers in in the construction, manufacturing, marine shipyard, process or services sectors.

Manpower Minister Tan See Leng, who is also Second Minister for Trade and Industry, said on Tuesday (Dec 13): “We wanted to provide enterprises that are very innovative, that have made significant investments and that have also very firm and very aggressive internationalisation plans, the complementary foreign manpower to help them.

“We will work very closely with the companies to make sure that they have the requisite work permits, S Passes, depending on the sectors that they are in, so that they can continue to grow and to grow very aggressively.

“And that would then translate into a lot more opportunities for Singaporeans to move up the career path and at the same time, allow firms to get the type of technical expertise and talent needed."

Dr Tan was speaking at the launch of the scheme at Goldbell Group, which leases and distributes commercial and industrial vehicles.

The details of the scheme were announced by the Ministry of Trade and Industry (MTI) and the Ministry of Manpower (MOM).

HOW IT WILL WORK

  • Companies have to abide by a foreign worker quota, or dependency ratio ceiling, which is determined by their industry
  • Under M-SEP, though, eligible companies will be allowed to increase their quota temporarily
  • Companies get to enjoy this higher quota for two years upon enrolment into the scheme
  • It may be renewed thereafter, subject to conditions
  • M-SEP will run for three years
  • Firms may begin to apply to be part of the scheme on MOM's website on Tuesday

WHY IT MATTERS

  • MOM and MTI said that the scheme aims to support the growth of businesses that contribute to Singapore through ambitious investment or internationalisation activities
  • They hope that it will help manpower-strapped companies to grow
  • They also hope that temporarily easing the manpower crunch for these companies this way will help to create more jobs and training opportunities for Singaporeans

HOW TO QUALIFY 

  • First, firms have to take part in programmes or initiatives that are in line with Singapore's "key economic priorities"
    • These include innovation, research and development, internationalisation or investments that support Singapore's "hub strategy"
    • To fulfil this condition, firms have to either take part in initiatives or fulfil criteria set up by economic agencies such as the Economic Development Board, Enterprise Singapore, the Infocomm Media Development Authority, the Maritime and Port Authority of Singapore or the Singapore Tourism Board
  • Second, firms have to commit to hiring or training resident workers. They may do so by: 
    • Increasing the overall resident workforce in their company earning a monthly salary of at least S$1,400 
    • Training these workers through programmes. These programmes must "demonstrate sufficient effort" in directly training the individual, for example, through structured on-the-job training
    • Being an "industry leader" with training that can benefit the sector at a "significant scale" by filling critical skill gaps or manpower shortages, or by being recognised for having excellent workplace learning structures to support business growth
  • If a company fails to meet its commitments by the end of the M-SEP support period, it will not be eligible for renewal for two years. For egregious firms that are found to have been insincere in fulfilling their commitments to hire or train resident workers, the government agencies will additionally take into account this poor track record when assessing these firms’ future participation in government-led programmes, MTI and MOM said

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