SINGAPORE: Companies that have expansion plans will be able to temporarily hire more rank-and-file foreign workers above the quota for their industry, under a new scheme launched on Tuesday (Dec 13).
These workers are S Pass or work permit holders.
To qualify for the scheme, firms must be contributing to Singapore’s “key economic priorities”, which include innovation, research and development and internationalisation.
They must also demonstrate that they are hiring and training local workers.
Called the Manpower for Strategic Economic Priorities (M-SEP) scheme, it was first announced by Manpower Minister Tan See Leng earlier this year at his ministry’s Committee of Supply debate following Budget 2022, although no details were given then.
In his speech on Mar 4, Dr Tan also announced a reduction in the Dependency Ratio Ceiling (DRC) for the construction and process sectors from 2024.
The DRC specifies the maximum proportion of foreign workers that a company is allowed to hire in relation to its total workforce.
Dr Tan said then: “Going forward, we will adopt a more targeted approach by providing flexibilities to businesses that contribute to our economic priorities, and in job roles where there are more pressing manpower needs but fewer locals.”
EXTRA QUOTA FOR S PASS, WORK PERMITS
Announcing details of the M-SEP scheme on Tuesday, the Manpower Ministry (MOM) and the Ministry of Trade and Industry (MTI) said qualifying companies will have the flexibility to temporarily hire S Pass and work permit holders above the current DRC.
The quota for such hires is up to 5 per cent of a firm’s base workforce headcount – subject to a cap of 50 workers per company.
This will last for two years and can be renewed if the firm continues to meet the qualifying criteria.
S Passes are held by mid-level workers who earn at least S$3,000 a month while work permit holders are generally semi-skilled migrant workers.
The ministries said that the scheme is meant for firms that are “needle-movers” for Singapore’s economic priorities, adding that it will help them “seize opportunities” to grow while securing jobs and training opportunities in the process.
Companies can start applying for the M-SEP scheme on MOM’s website from Tuesday.
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