Mar 1, 2012

Singapore - More flexibility for businesses using foreign labour: Tharman



In his round-up speech after the Budget debate in Parliament, Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam said the Ministry of Manpower will look into allowing greater flexibility for businesses in deploying current foreign labour.

Referring to suggestions by MPs Ang Wei Neng and Tin Pei Ling to allow companies to keep experienced foreign workers who have been trained for longer periods, Mr Tharman said this had merit, as long as the company was still within its dependency ratio ceiling (DRC). He noted that such workers who are well-trained and experienced are a plus for productivity and saves the company from having to re-hire and re-train another foreign worker.

Deployment of foreign workers across job duties within the same firm, which was previously not allowed, will also be relaxed, starting with the hotel sector. Mr Tharman said that dialogues with industry, business chambers and associations have seen them putting in requests for such flexibility, pointing to how this will be a boost to efficiency.

However, Mr Tharman said that giving greater flexibility to specific industries that seem to have greater need for foreign workers will not work as such a practice is not practical nor equitable, as it does not curb the excessive growth in foreign worker numbers nor achieve dual goals of boosting productivity and incomes. Moreover, he noted that it will give an unfair advantage to some firms over others.

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