In response to the rising number of complaints from both locals and foreigners alike against service staff who cannot speak English, the Ministry of Manpower has introduced an English proficiency test for “skilled” foreign workers.
The new rules will take effect from the third quarter of next year and new foreign workers have to clear the test before they can get a work permit as a skilled worker.
Employers who hire foreigners proficient in the language will pay a levy of $150 a month for the skilled worker compared to $240 for an unskilled worker.
(According to MOM’s definitions, does it mean that waiters, bartenders and cleaners who can speak simple English are considered “skilled” foreign workers?)
The service industry which consists of retail, food and beverage (F&B) and hotels employ a total of 320,000 workers, about half of which are foreigners.
Minister of State for Manpower as well as Trade and Industry, Mr Lee Yi Shyan said in an interview with the state media that the new rule is propelled by the need to boost productivity in the service sector, which has been on the decline.
The recently released Singapore Competitiveness Report showed that Singapore’s labour productivity – measured in terms of total output per employee – lags that of developed countries including the United States, France and Norway, as well as Asian neighbours Hong Kong and Taiwan.
The report also found that productivity here is falling in the sectors of manufacturing, construction, hotels and restaurants, business services and wholesale and retail trade – which, taken together, employ two-thirds of the workforce and make up 60per cent of the economy.
Last year, productivity among hotels and restaurants fell by 9 per cent, and continues to drop further this year.
Citigroup economist Kit Wei Zheng said that Singapore’s rapid growth over the last few years has been mostly driven by a massive increase in the workforce.
“Between 2006 and last year, the number of workers in Singapore jumped an average 6.5per cent a year, largely due to liberal immigration policies……But it is clear that growth powered by importing foreign labour is simply not sustainable,” he added.
Foreigners accounted for a third of the three-million-strong labour force om 2008, up from only a quarter in 2004.Singapore’s economy boomed correspondingly with average growth of 8.2per cent a year between 2004 and 2007.
The new rule is unlikely to encourage employers to hire more locals. In fact, it will only spur them to turn to foreign workers who are already proficient in the English language such as the Filipinos and Indians.
(Filipino trainee waitresses working on a three month attachment in a local 5-star hotel are paid only between $500 – $700 a month on top of free accomodation)
Filipinos are highly prized in Singapore for their proficiency in the English language.There are an estimated 144,000 Filipinos in Singapore, many of who are taking up jobs which can otherwise be filled by locals in various fields such as banking and finance, medicine, education, information technology, retail services, engineering, and entertainment.
Singapore’s liberal immigration and labor laws help companies cut business costs by permitting them to employ large number of foreigners though they must fulfill a “token” quota for locals.
The relentless influx of low cost foreign workers resulted in the depressing of wages for local workers thereby accentuating the income gap between the rich and the poor.
DBS economist Irvin Seah said that low-wage foreign workers have contributed to the widening of the income gap as they are more willing than local workers to accept less pay for lower-skilled jobs.
According to Mr Seah, some Singapore workers are struggling to keep pace as the economy develops and are in danger of losing their jobs.
Not that the ruling party, which is obsessed with GDP growth figures care much anyway. MM Lee Kuan Yew dismissed the significance of Singapore’s widening income gap in a recent ministerial forum held at NUS. He said it is more important for the government to continue creating jobs for Singaporeans.
There are no independent trade unions in Singapore to represent the interests of Singapore workers. The sole largest so-called “trade union” – NTUC, is a quasi-government organization headed by a minister.
Neither is there any effective opposition in parliament to check on the ruling party whose two-thirds majority allows it to pass bills and legislation as and when it pleases.
Draconian laws are put in place to prevent Singaporeans from exercising their political rights as citizens to express their unhappiness against government policies. Under a new Public Order Act, even a solo protest is outlawed in Singapore.
The new rules will take effect from the third quarter of next year and new foreign workers have to clear the test before they can get a work permit as a skilled worker.
Employers who hire foreigners proficient in the language will pay a levy of $150 a month for the skilled worker compared to $240 for an unskilled worker.
(According to MOM’s definitions, does it mean that waiters, bartenders and cleaners who can speak simple English are considered “skilled” foreign workers?)
The service industry which consists of retail, food and beverage (F&B) and hotels employ a total of 320,000 workers, about half of which are foreigners.
Minister of State for Manpower as well as Trade and Industry, Mr Lee Yi Shyan said in an interview with the state media that the new rule is propelled by the need to boost productivity in the service sector, which has been on the decline.
The recently released Singapore Competitiveness Report showed that Singapore’s labour productivity – measured in terms of total output per employee – lags that of developed countries including the United States, France and Norway, as well as Asian neighbours Hong Kong and Taiwan.
The report also found that productivity here is falling in the sectors of manufacturing, construction, hotels and restaurants, business services and wholesale and retail trade – which, taken together, employ two-thirds of the workforce and make up 60per cent of the economy.
Last year, productivity among hotels and restaurants fell by 9 per cent, and continues to drop further this year.
Citigroup economist Kit Wei Zheng said that Singapore’s rapid growth over the last few years has been mostly driven by a massive increase in the workforce.
“Between 2006 and last year, the number of workers in Singapore jumped an average 6.5per cent a year, largely due to liberal immigration policies……But it is clear that growth powered by importing foreign labour is simply not sustainable,” he added.
Foreigners accounted for a third of the three-million-strong labour force om 2008, up from only a quarter in 2004.Singapore’s economy boomed correspondingly with average growth of 8.2per cent a year between 2004 and 2007.
The new rule is unlikely to encourage employers to hire more locals. In fact, it will only spur them to turn to foreign workers who are already proficient in the English language such as the Filipinos and Indians.
(Filipino trainee waitresses working on a three month attachment in a local 5-star hotel are paid only between $500 – $700 a month on top of free accomodation)
Filipinos are highly prized in Singapore for their proficiency in the English language.There are an estimated 144,000 Filipinos in Singapore, many of who are taking up jobs which can otherwise be filled by locals in various fields such as banking and finance, medicine, education, information technology, retail services, engineering, and entertainment.
Singapore’s liberal immigration and labor laws help companies cut business costs by permitting them to employ large number of foreigners though they must fulfill a “token” quota for locals.
The relentless influx of low cost foreign workers resulted in the depressing of wages for local workers thereby accentuating the income gap between the rich and the poor.
DBS economist Irvin Seah said that low-wage foreign workers have contributed to the widening of the income gap as they are more willing than local workers to accept less pay for lower-skilled jobs.
According to Mr Seah, some Singapore workers are struggling to keep pace as the economy develops and are in danger of losing their jobs.
Not that the ruling party, which is obsessed with GDP growth figures care much anyway. MM Lee Kuan Yew dismissed the significance of Singapore’s widening income gap in a recent ministerial forum held at NUS. He said it is more important for the government to continue creating jobs for Singaporeans.
There are no independent trade unions in Singapore to represent the interests of Singapore workers. The sole largest so-called “trade union” – NTUC, is a quasi-government organization headed by a minister.
Neither is there any effective opposition in parliament to check on the ruling party whose two-thirds majority allows it to pass bills and legislation as and when it pleases.
Draconian laws are put in place to prevent Singaporeans from exercising their political rights as citizens to express their unhappiness against government policies. Under a new Public Order Act, even a solo protest is outlawed in Singapore.
