Singapore tightens rules for expat workers with an eye on local discontent

The city-state is raising the salary threshold for foreigners to get a work permit amid stiff local competition for jobs. Sid Suhas, the senior vice president and head of EMEA & APAC at the talent acquisition firm Cielo, said the visa changes are likely to prompt large employers to “focus more on attracting, developing and nurturing the local talent pool, particularly for junior professional and mid-level lower-skilled roles.” With the higher salary threshold, companies are likely to adopt “a skills-first approach” when employing foreigners, Suhas said, focusing on talent in areas such as AI, technology, engineering and healthcare. “Selected businesses may have EP hiring in the stated 5,000 or 5,500 range for specialised roles but usually, that is for time-limited, project engagement or if they are in specialised sectors that rely on a foreign talent pool because of a lack of matching local workforce.” But the increased labour costs could affect the profitability of SMEs with tighter budget constraints, said Achieve Group’s Yim. They might feel that talent is being stolen away and thus, this group is at the shorter end of the stick.” Xu Le, a lecturer from the department of strategy and policy at the National University of Singapore’s Business School, said the policy change could “spur local companies to think out of the box and explore alternative methods to enhance overall operational efficiency and labour productivity”, in turn benefitting the economy. Nicholas Sim, an associate professor at SUSS’s business school, said that businesses seeking to establish a foothold in Asia are still likely to prioritise Singapore due to its “high-quality infrastructure, efficient and stable government and access to a high-calibre talent pool”.