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 benefit businesses, particularly startups and SMEs. Streamlining the application process and reducing bureaucratic hurdles would enable companies to scale operations more efficiently, he argues.
Secondly, implementing a more flexible work pass framework that accommodates the evolving nature of businesses would be advantageous, Kumar reckons. This could include options for part-time work passes or project-based employment permits, providing greater flexibility for companies to manage their workforce.
Thirdly, relaxing ownership restrictions for foreign entrepreneurs could encourage greater investment and innovation, Kumar advocates.
Singapore can retain essential expertise and foster a global talent pool
“Expanding opportunities for foreign entrepreneurs to establish and grow businesses in Singapore would contribute to a more dynamic and competitive economy,” he tells Splash.
Finally, establishing clearer pathways for foreign talent to obtain permanent residency or citizenship would incentivise top talent to stay and contribute to Singapore’s long-term growth.
“By offering a clear career progression for skilled foreign workers, Singapore can retain essential expertise and foster a global talent pool,” Kumar says.
“Simpler visa processes – and for family / dependents, increasing visa quotas for organisations and clearer criteria on permanent resident pathways would give organisations a clearer view of talent pipeline and planning,” advises Cara Carter, global managing director of Halcyon Recruitment.
“From a business point of view, we need to develop a workforce here that considers Singapore home and not only worries about operations today but creating a system for the next generation to be ready to see the company grow and prosper,” maintains Vinay Gupta, managing director of Union Marine Management Services (UMMS). That is only possible, he reckons, if a person has a clear path of being able to have a continuity plan for themselves and for the company.
“Good to great requires good people to stay in the organisation and plan for the future,” Gupta surmises.
Another shipmanger, Carl Schou, the head of Wilhelmsen Ship Management, points out that the access to qualified technical people such as vessel managers is crucial.
“With the strict immigration policies, it’s difficult to get enough qualified people to Singapore – and the ones which do come to Singapore command compensation packages which are not sustainable in the long run,” Schou points out.
With national elections due soon, expect to read plenty more about immigration in the coming months.
Splash readers can access the full 60-page Singapore special for free by clicking here.
