Rainbow variety work passes and quota schemes the cause of structural unemployment, rampant corruption in Singapore.
Firstly, the quota scheme (Dependency Ratio Ceiling (DRC)) https://www.mom.gov.sg/passes-and-permits/s-pass/quota-and-levy/levy-and-quota-requirements makes bosses unnecessarily nice to Singaporeans whilst not promoting/up-skilling them because boss only wants them to make headcount to employ the s/e-pass 'better worker' at discount. (Discount/'better worker' because they don't pay employer CPF, don't get disrupted by NS, don't demand high salary because from 3rd world country and don't grumble about 20% pay 'cut' to deposit into CPF, don't have kids that need kids leave to take care(baggage), no maternity issues, no need to offer job at retirement age etc).
Employ foreigner as S/E- pass also allows evasion of corporate income tax besides increasing headcount at cheap rate vz over declaration of salary/ kickback. E.g. $2200/ mth to qualify for S pass, salary declared and paid is $2200 into bank account but worker must refund $800 in hard cash to employer who will place $$$ into slush fund for his own hanky panky activities or to bribe business clients etc https://www.mom.gov.sg/newsroom/pre...-declaring-salaries-in-work-pass-applications . There is also income tax discount for company because excess $800/worker/mth is deducted from revenue so taxable income is reduced by $9600/ s-pass employee each year (and same amount to slush fund as well). The s-pass fees is also much lower than the work permit fees for the actual worker salary of $1400/mth, so even more savings for the corrupt or sunset company.
Best is can scam the e-pass but this one needs qualifications, greater MOM scrutiny and iirc, the salary level is at least $4500/ mth or so.
Many Singaporeans are also temporarily happy because employer just wants them around (Sayang them) just to meet MOM headcount to acquire the quota limit for s-pass workers: these workers are thus being deceived and not being given the appropriate early signal to re-skill because they are already in an over saturated or sunset industry. However, many of such companies should probably be either corruptly run (need slush funds to grease palms to earn revenue) or are sunset industries which are not automated or already oversaturated (too much competition), so playing the s-pass scam is just scraping the barrel, hanging on to thin thread and trying too hard by half to stay in the black: the s-pass scam is just delaying the inevitable that the company is economically unviable and alive only by scamming the people and the government.
Targeted worker welfare schemes like workfare also help perpetuate the worker's sense of helplessness if not entitlement and indoctrinating his purpose as just to make up quota numbers, and not really do much productive work in his position. Low wage workers isn't aware that foreign talents and employers are in cahoots to defraud government, suffice to say, he knows that the employer has such easy access that to strive for a s-pass equivalent level job would be a Sisyphean task/ fools errand since many employers have such open access to s-pass and e-pass workers that it really isn't worth the trouble striving for. Many employers also primarily see Singaporeans as just general headcount numbers as a means to applying for s-pass employees, since scamming the s-pass is such lucrative business.
Therefore, I have shown that the differently priced levy for work permit, s-pass, e-pass is causing serious structural problems in the Singapore employment scene and also rampant corruption in business that is very hard to police because even new foreigner recruits are orientated to cheat, right from their first day of work in Singapore.
MOM probably invented the rainbow variety of different type work passes to grow their own numbers so family member may find jobs under MOM fold. Unfortunately, this unnecessarily complicated rainbow variety of foreigner work pass types is causing much structural unemployment and also very expensive if not impossible to police (BOTH employer and employee are complicit in S-pass scam). Just one standard foreign worker levy system sold vz monthly auction (like COE with limited quotas) would be much easier to operate and also avoid scams which diminish SG government tax revenues and short change Singaporeans of skills attainment and good job options and avoid the distortions in job supply and demand as compared to what is required in the world.
Singaporeans are frogs in an already small well, and MOM has just drained out much water from the well to aggravate the job situation for us all.
The Manpower Minister really ought to find a new job for him/herself.
Firstly, the quota scheme (Dependency Ratio Ceiling (DRC)) https://www.mom.gov.sg/passes-and-permits/s-pass/quota-and-levy/levy-and-quota-requirements makes bosses unnecessarily nice to Singaporeans whilst not promoting/up-skilling them because boss only wants them to make headcount to employ the s/e-pass 'better worker' at discount. (Discount/'better worker' because they don't pay employer CPF, don't get disrupted by NS, don't demand high salary because from 3rd world country and don't grumble about 20% pay 'cut' to deposit into CPF, don't have kids that need kids leave to take care(baggage), no maternity issues, no need to offer job at retirement age etc).
Employ foreigner as S/E- pass also allows evasion of corporate income tax besides increasing headcount at cheap rate vz over declaration of salary/ kickback. E.g. $2200/ mth to qualify for S pass, salary declared and paid is $2200 into bank account but worker must refund $800 in hard cash to employer who will place $$$ into slush fund for his own hanky panky activities or to bribe business clients etc https://www.mom.gov.sg/newsroom/pre...-declaring-salaries-in-work-pass-applications . There is also income tax discount for company because excess $800/worker/mth is deducted from revenue so taxable income is reduced by $9600/ s-pass employee each year (and same amount to slush fund as well). The s-pass fees is also much lower than the work permit fees for the actual worker salary of $1400/mth, so even more savings for the corrupt or sunset company.
Best is can scam the e-pass but this one needs qualifications, greater MOM scrutiny and iirc, the salary level is at least $4500/ mth or so.
Many Singaporeans are also temporarily happy because employer just wants them around (Sayang them) just to meet MOM headcount to acquire the quota limit for s-pass workers: these workers are thus being deceived and not being given the appropriate early signal to re-skill because they are already in an over saturated or sunset industry. However, many of such companies should probably be either corruptly run (need slush funds to grease palms to earn revenue) or are sunset industries which are not automated or already oversaturated (too much competition), so playing the s-pass scam is just scraping the barrel, hanging on to thin thread and trying too hard by half to stay in the black: the s-pass scam is just delaying the inevitable that the company is economically unviable and alive only by scamming the people and the government.
Targeted worker welfare schemes like workfare also help perpetuate the worker's sense of helplessness if not entitlement and indoctrinating his purpose as just to make up quota numbers, and not really do much productive work in his position. Low wage workers isn't aware that foreign talents and employers are in cahoots to defraud government, suffice to say, he knows that the employer has such easy access that to strive for a s-pass equivalent level job would be a Sisyphean task/ fools errand since many employers have such open access to s-pass and e-pass workers that it really isn't worth the trouble striving for. Many employers also primarily see Singaporeans as just general headcount numbers as a means to applying for s-pass employees, since scamming the s-pass is such lucrative business.
Therefore, I have shown that the differently priced levy for work permit, s-pass, e-pass is causing serious structural problems in the Singapore employment scene and also rampant corruption in business that is very hard to police because even new foreigner recruits are orientated to cheat, right from their first day of work in Singapore.
MOM probably invented the rainbow variety of different type work passes to grow their own numbers so family member may find jobs under MOM fold. Unfortunately, this unnecessarily complicated rainbow variety of foreigner work pass types is causing much structural unemployment and also very expensive if not impossible to police (BOTH employer and employee are complicit in S-pass scam). Just one standard foreign worker levy system sold vz monthly auction (like COE with limited quotas) would be much easier to operate and also avoid scams which diminish SG government tax revenues and short change Singaporeans of skills attainment and good job options and avoid the distortions in job supply and demand as compared to what is required in the world.
Singaporeans are frogs in an already small well, and MOM has just drained out much water from the well to aggravate the job situation for us all.
The Manpower Minister really ought to find a new job for him/herself.
Last edited:
