No significant impact from move to raise foreign workers’ qualifying salaries
Channel News Asia, Sunday, 13 March 2011
No significant impact from move to raise foreign workers’ qualifying salaries
The recent move to raise the qualifying salaries for foreign professionals and skilled workers may do little to quell demand.
Companies MediaCorp spoke to say it’s still difficult to get Singaporeans to fill certain job positions.
With the economy operating at full employment, companies say they have no choice but to look outside Singapore’s shores for workers.
PrimeStaff Management Services has a number of workers on S-Pass and Employment Pass on its payroll.
The tighter criteria for such skilled and professional pass applicants will not have a big impact on its recruitment drive, says the company.
Managing Director Ronald Lee said this is because they are already paying such workers more than the new minimum salaries.
“When I hire, you don’t look at people just coming at the minimum level. You look at people who fit the requirements and these people who fit the requirements could already be earning $3,000, $4,000, $5,000 even. So, if you really want to hire them that is the kind of range you got to be paying them.”
From 1st July, for professionals, the minimum monthly pay for an Employment Pass will be raised by as much as 1,000 dollars.
And, the salary threshold for mid-level skilled workers for an S-Pass, will go up from 1,800 to 2,000 dollars.
Recruitment companies say their clients still prefer to hire local workers.
But this may be challenging.
Mr Lee explained this is because local workers have even higher salary expectations.
“They would expect a very very high package to entice them, or to motivate them to move. So therefore, we have no choice but to look outside. There are also a lot of equally qualified foreigners who are keen to come at a lower salary, and these foreigners are generally more committed and they have a higher staying power. And also if you hire a foreigner you are not bound forever. You have a one year contract, two year contract depending how long the Employment Pass or S-Pass lasts. So, if you apply for 24 months they’ll stay with you for 24 months.”
Companies say they are finding it tough to hire local professionals because of the tight labour market and low unemployment rate.
The new qualifying salary for S-pass and Employment pass applicants was raised to tackle concerns over foreign talent competing with Singaporeans for jobs.