HELPING FIRMS GROW
Dr Tan said the M-SEP scheme is designed to work with other government programmes that support economic priorities.
“Firms that participate in these programmes contribute towards Singapore’s competitiveness and generate economic opportunities for Singaporeans,” he said.
In response to a question about what the new scheme signals with regard to automation and reliance on foreign workers, the minister noted that the programmes that companies must participate in to qualify for the scheme are related “not just to growth, but also to help firms to become more productive at the same time, through innovation and internationalisation”.
“To reduce the reliance on large numbers of low- and mid-skilled foreign workers, and continue in their automation journeys, firms will need to pivot and transform,” Dr Tan said.
The Ministry of Manpower and the Ministry of Trade and Industry previously said examples of relevant programmes include the Economic Development Board’s Development and Expansion Incentive as well as Enterprise Singapore’s Scale-Up SG programme.
Those programmes are in line with important economic priorities such as investing in Singapore’s hub strategy, innovation or research and development, and overseas expansion.
The ministries said at the time that about 1,000 firms – less than 1 per cent of all registered businesses in Singapore – meet this requirement.
“M-SEP is selective in targeting firms or investments that will grow our economy and also grow our competitiveness,” Dr Tan said on Monday.
He added that the M-SEP only provides support for a limited time.
“Even if a company uses additional foreign workers to transform initially, these flexibilities are time-limited and they will cease after the support period,” he said.
He added that SMEs and smaller companies can qualify for the scheme as long as they meet the necessary conditions.
However, outsourced service providers will not be allowed to hire more foreign workers based on their clients qualifying for the scheme, Dr Tan said.
The minister noted that there are other measures in place to ensure that firms that provide essential services, such as in healthcare or the cleaning of public housing estates, have access to foreign manpower for essential functions.
He said that the number of additional S Passes and work permits to be issued will depend on the take-up rate of the M-SEP scheme. Not all of the about 1,000 firms will require M-SEP support, he said.
“We will monitor the takeup rate closely and we will review the scheme accordingly,” he added.
The minister stressed that authorities take workplace fairness issues seriously.
Firms that have breached the Fair Consideration Framework or the Tripartite Guidelines on Fair Employment Practices may be barred from work pass privileges and will not be able to qualify for the new M-SEP scheme.
Those that are still undergoing investigations will be assessed on a case-by-case basis.
Noting that authorities are looking to enshrine the Tripartite Guidelines on Fair Employment Practices in law, Dr Tan said: “We will take reference from the penalty framework of the new legislation when deciding on the treatment of such firms.”
He added that manpower should not be a constraint to growth and that it is “most important to ensure that Singaporeans can benefit” from the country’s economic priorities.
“Designed with these principal objectives in mind, M-SEP will strengthen our competitiveness,” he told Parliament.
“The Government will continue to monitor the outcomes of the M-SEP scheme, and will enable us to generate economic opportunities and provide better outcomes for Singaporeans.”
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