The Real Singapore

15 Oct 2013

I refer to the article “Higher EP minimum pay puts strain on workers, companies” (Straits Times, Oct 14).

Employment Pass convert to S-Pass?

With the statistics and trend indicating that an increasing number of employment pass are being converted to S-Pass, does it mean that the wages of Singaporeans may be depressed even further?

Increasing levy?

If you are an employer and the levy on the S-Pass has been increased to as much as $450 and up to $650 in 2015, what would some employers be likely to do?

Reduce wages?

– Reduce the pay that they had earlier or would otherwise be willing to pay to S-Pass holders?

So, will this also mean that the wages of Singaporeans may be depressed even further?

Huge increase in S-Pass?

With the tightening on the employment pass, wouldn’t some employers simply apply for the S-Pass, which at least from the point of view of the huge increase of about 8.2 per cent in S-Pass numbers in the first half of this year – may give the impression to employers that it may be easier to apply for S-Passes, or simply change the application to S-Pass when the employment pass application is rejected?

So, does it mean that the wages of Singaporeans may also be depressed even further?

The 8.2 per cent increase in S-Pass from 142,400 to 154,100, in just 6 months in the first half of this year – may mean that the number of new S-Passes granted must be more than the increase of 11,700, because as I understand it – this figure does not include those who did not apply for renewal and those whose renewals were rejected.

Why is this vital statistic not revealed?

Foreign workers’ “musical chairs”?

Of all the countries that we studied and visited to come up with our (consider) Singaporeans First policies – were there any, or for that matter any country in the world that offers or allows an employer’s employment pass application that is rejected to become a lower S-Pass.

Perhaps those whose S-Pass are rejected may just apply for a work permit instead for a different foreign worker by changing the job title, qualifications, experience, etc.

Is this not like playing “musical chairs”?

Can employ 100% foreigners?

For example, a company in the service sector may still be able to employ 100 per cent non-Singaporeans as follows:

15% S-Pass
25% work permit
60% PRs/foreign spouses on long-term visit pass with a letter of consent (to work)/foreign university interns/foreign students studying in Singapore (all these categories have no limits and are also not counted in foreign worker quota)

S-Pass is the main problem?

Arguably, it may be the S-Pass which is the biggest problem for Singaporean workers, particularly PMETs, because these are generally the type of jobs paying at l east $2,200 that many Singaporeans want.

Squeezing S’poreans in the middle?

If I may use an analogy – it may be akin to tightening the screws in both sides, but allowing the middle to expand – to the chagrin of Singaporeans and further depressing our wages.

Leong Sze Hian

*Leong is the Past President of the Society of Financial Service Professionals, an alumnus of Harvard University, has authored 4 books, quoted over 1500 times in the media , has been host of a money radio show, a daily newspaper column, Wharton Fellow, SEACeM Fellow, acting managing editor and columnist for theonlinecitizen, columnist for Malaysiakini, a Member on the CIFA International Advisory Board, executive producer of the movie Ilo Ilo (8 international awards), treasurer of Maruah, and invited to speak more than 100 times in more than 25 countries on 5 continents. He has served as Honorary Consul of Jamaica and founding advisor to the Financial Planning Associations of Brunei and Indonesia. He has 3 Masters, 2 Bachelors degrees and 13 professional qualifications.

P.S. Han Hui Hui has lost her life savings of $10,755.

If only 10,755 Singaporeans who care – donate $1 each to this brave 33 kg 21 year old.

Send your $1 vide Internet Banking, ATM or cheque to POSB savings account no. 279-12328-0 Han Hui Hui.

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Written by Leong Sze Hian, Vivian Pan and Roy Ngerng