Singapore - Mixed reactions to MOM's fee hike for work passes

SINGAPORE: Businesses in Singapore are mixed in their views on the Manpower Ministry's latest move to increase administrative fees for most work passes.

Fees for passes for foreigners to work here will be raised from December 1 this year.

The Association of Small and Medium Enterprises (ASME) said this will be an additional burden, as businesses will have no choice but to pass the costs to consumers.

On the other hand, Sakae Holdings is not too concerned because they've been exploring other avenues, like technology, to cut down on manpower.

Ruth Lim, Marcom AVP at Sakae Holdings said the company currently uses iPads for customers to order their food at Sakae Sushi outlets.

In addition, they are exploring the possibility of out-sourcing work by foreign employers to service providers.

The application fee for three types of work passes will go up from S$10 to S$20.

The biggest increase in rates is for the issuance of the Employment Pass for foreign professionals.

This will go up from S$30 a year to S$120 per transaction.

As work passes generally last two years, this new rate is double the current amount.

For skilled workers on S Pass, the rate goes up from S$30 a year to S$70 per transaction.

For those on work permit, the amount is still S$20 per transaction but with no subsidy for those who opt for the pass online.

The ministry said the S$20 subsidy - to encourage online submissions - will be withdrawn.

ASME said this was disappointing because it contradicts the push for productivity and efficiency through the use of IT.

The ministry said it is increasing the rates with the aim of "full recovery of cost".

- CNA/cc


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