Raising minimum qualifying salary of Singapore work pass holders may not be long-term solution, say companies | Malay Mail

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Raising minimum qualifying salary of Singapore work pass holders may not be long-term solution, say companies

Employers said that they may be able to find Singaporeans willing to take up some roles given that many are out of a job due to the Covid-19 pandemic, but this may not be a long-term solution. ― TODAY pic

For the first time, there will also be a separate salary criterion for Employment Pass holders working in financial services: The minimum qualifying monthly salary for these workers will be further raised to S$5,000 later in the year. Jeremy Fong, chief executive officer of Fong’s Engineering, said that he is already paying one of his Japanese staff members close to a five-digit salary. The employee is able to work on the research and development, as well as the industrial design of high-value medical devices.The increase for the minimum salary requirement of S Pass holders would eat into his bottomline more. Even then, it would not be much since it is just S$100.

Selena Ling, head of treasury research and strategy at OCBC bank, said that the new salary requirements would probably affect labour-intensive sectors. Sectors with higher-paid workers would likely remain unaffected. “DBS is supportive of MOM’s efforts to develop a strong pipeline of local talent in the finance sector, and we remain committed to hiring and developing a Singaporean core in our workforce,” the spokesperson said.

Raising the minimum qualifying salary effectively raises the bar to ensure that companies bring in capable talents from overseas. Seah said that quotas cannot be imposed on Employment Pass holders due to obligations that Singapore has to fulfil in the free trade agreements it has signed with other countries.

 

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