Are Foreign PMETs displacing Singaporean PMETs?
10 April 2015
Are
Foreign PMETs displacing Singaporean PMETs?
Just a few days ago, mainstream
media highlighted the growth of our foreign workforce numbers over the last 4
years, stirring up a tangle of anxieties over foreign competition for PMET jobs
with locals. Many are concerned that foreign PMETs have displaced Singaporean
PMETs. But is this really the case?
Singaporean
PMETs generally enjoy positive employment outcomes
Let
me put this into perspective. For the above to be true, the unemployment rate
of Singaporean PMETs must have risen significantly over the years. Yet, the
fact remains that the unemployment rate of Singaporean PMETs remained low at 2.9%
in 2014.
Some may say that even with low unemployment,
Singaporeans have to settle for lower paying jobs due to the competition from
foreigners. But if this is widespread,
the incomes of Singaporean PMETs must have remained stagnant or even declined
over time. That did not happen. In fact, the real median income (adjusted for inflation) of
Singaporean PMETs grew by about 2% per annum between 2009 and 2014 while those
of median Singaporean workers grew by 2.1% per annum over the same period.
So the PMET job market is not a
zero-sum game. With the economy continuing
to grow, there will be more jobs for Singaporeans if firms are able to get the
talent they need to invest or expand their operations here.
Am I implying that there is no
problem with our reliance on foreign manpower? No. We do have to grow our
foreign manpower at a sustainable pace. And
we have been tightening our foreign workforce policy since 2011 as part of our
overall quality growth strategy. What
I’m saying here is that the assumptions that more foreign PMETs = more Singaporean
PMETs unemployed and in lower paying jobs are not borne out in numbers. Singaporean
holding PMETs jobs, like any other occupations will
face challenges as businesses restructure. What matters at the end of the
day is whether one has the necessary skills required to perform the job.
We have
slowed down foreign workforce growth
Because
of our tightening policies, we have significantly slowed the pace of growth in
foreign PMETs. The growth rate of Employment Pass (EP)
and S Pass holders has slowed from 20% in 2011 to 4% in 2014 year-on-year (see the
chart below).
Chart
1: EP and S Pass growth and growth rates 2011-2014 (as at Dec)
We will
ensure Fair Employment Practices
At the Conference on Fair & Progressive
Employment Practices on yesterday, I explained that where there are instances
of unfair practices, nationality-based or otherwise, MOM will undertake a
proper investigation. We will protect the interest of our locals and not allow
the festering of unfair hiring practices. However, we must allow for due
process to take place so that the rule of law is respected.
We will step up support for
Singaporean PMETs
Along with a
growing economy, our measures to tighten inflow of foreign workers and ensure
fair employment practices have brought about good employment outcomes for
Singaporean PMETs. However, let us not be complacent. There are individuals who
will need help to update their skills and find new jobs.
We want to help
Singaporeans have the right skills to take on new and meaningful job
opportunities being created. We will enhance funding support for mid-career Singaporeans.
Education and training subsidies for all Singaporeans aged 40 and above have
increased to a minimum of 90% of training costs for courses funded by MOE and
WDA. This is a substantial increase from the current minimum subsidy of 75% for
MOE courses, and 50-70% subsidy for WDA-supported courses. We have also substantially increased the monthly salary support given to employers who hire PMETs in Professional Conversion Programmes, from the previous 70% of basic monthly salary, to 90%. This enhanced support is
targeted at PMETs who are aged 40 years and above, or those unemployed for six
months or more.
We hope the
above will benefit Singaporean PMETs substantially and put them on a good
course towards realising their dreams and aspirations.
Minister for Manpower and Minister for Social
and Family Development
Tan Chuan-Jin
Tan Chuan-Jin
