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[h=2]American chief of SICC issues veiled threats in response to
tightening of foreign labour[/h]
November 13th, 2012 |
Author: Editorial
SICC Chief Phillip Overmyer
The PAP Govt has been gradually introducing policies to tighten foreign
labour in Singapore.
These include raising foreign worker levies, introducing stricter criteria
for S Passes and Employment Passes, lowering the dependency ratio ceilings to
hire foreign workers and more recently, raising the bar for foreigners applying
for Personalised Employment Passes (PEP).
The PEP, which among other things, allows foreign professionals to stay in
Singapore continuously for six months while being unemployed, will soon require
them to have a minimum annual fixed salary of $144,000 – up from the existing
$34,000 a year.
More measures to further calibrate the numbers of S Pass holders may also be
introduced soon.
Not surprisingly, Phillip Overmyer, Chief Executive of the Singapore
International Chamber of Commerce (SICC), which represents more than 700
multinational companies (MNC) based in Singapore, is not happy.
He said the frequent changes in such policies have not been helpful in their
(MNCs’) operations in Singapore. He wants the government to provide more clarity
on its foreign manpower policies for the next 5 years.
The SICC’s chief, who is an American, said, “What I really want to know
though, is not where are you going, next month or next year, but what’s very
important to the company is, tell me what the rules are going to be for the next
five years, because I want to build here in Singapore an operation that I can
support under the laws of Singapore.”
“When the law is sort of changed, well for this group we are going to change
it, and then a while later, we’re going to make another change in another group,
it becomes very, very hard for corporations to make a plan on how to produce a
product for the next four to five years.”
Overmyer added, “So our members are sort of waiting – let’s see what happens
when the government sorts all these out. In the meantime, we’ll struggle along a
little bit as best as we can.”
He then talked about companies “moving on” if they cannot “live with this new
situation”. He said, “The real issue will come up when, the companies finally
sit down and say, okay, company by company, they will have to decide, can I live
with this new situation, or is it time for me to move on, and that’s when we
will get a better understanding of where the companies are.”
In response, the Manpower Ministry (MOM) said the decision to slow the
foreign manpower growth was actually made two years ago based on the Economic
Strategies Committee (ESC) report. The Committee was set up in 2009 to
recommended strategies to restructure the economy away from labour-intensive
growth towards productivity and innovation-led growth for sustainable and
inclusive development. MOM added that changes introduced had been gradual, with
transition time given to existing workers who are affected and for companies to
adapt.
MOM stressed that foreign workers remain valuable to Singapore’s workforce
and economy, but should avoid over-dependence. While the government moderate
growth of foreign manpower, it will continue to welcome skilled foreigners who
complement the local workforce. The aim is to encourage companies to raise
productivity for a more sustainable growth.
Indeed, eyebrows were raised when it was revealed that foreign workers were
making a basic pay of only $500 a month at Panasonic Singapore, resulting in the
workers protesting against the management (‘Over 100 PRC workers at Panasonic Singapore start a petition‘).
At $500 a month, it sounds more like the salary of cheap labour than that of a
skilled foreigner.
Phillip Overmyer has been the Chief Executive of SICC since 2003. He was
previously Vice President of Samuels International, an international consulting
firm specializing in business, trade and investment matters for 1 year in 2002.
He was its VP Asia Pacific of Concert Global Services. Before that, he was in
the telecommunications industry for nearly 30 years including 12 years based in
Singapore. He was the Vice President of Global Services for AT&T in
Asia.
.
Join our TRE facebook page here: http://www.facebook.com/TREmeritus
.
tightening of foreign labour[/h]
SICC Chief Phillip Overmyer
The PAP Govt has been gradually introducing policies to tighten foreign
labour in Singapore.
These include raising foreign worker levies, introducing stricter criteria
for S Passes and Employment Passes, lowering the dependency ratio ceilings to
hire foreign workers and more recently, raising the bar for foreigners applying
for Personalised Employment Passes (PEP).
The PEP, which among other things, allows foreign professionals to stay in
Singapore continuously for six months while being unemployed, will soon require
them to have a minimum annual fixed salary of $144,000 – up from the existing
$34,000 a year.
More measures to further calibrate the numbers of S Pass holders may also be
introduced soon.
Not surprisingly, Phillip Overmyer, Chief Executive of the Singapore
International Chamber of Commerce (SICC), which represents more than 700
multinational companies (MNC) based in Singapore, is not happy.
He said the frequent changes in such policies have not been helpful in their
(MNCs’) operations in Singapore. He wants the government to provide more clarity
on its foreign manpower policies for the next 5 years.
The SICC’s chief, who is an American, said, “What I really want to know
though, is not where are you going, next month or next year, but what’s very
important to the company is, tell me what the rules are going to be for the next
five years, because I want to build here in Singapore an operation that I can
support under the laws of Singapore.”
“When the law is sort of changed, well for this group we are going to change
it, and then a while later, we’re going to make another change in another group,
it becomes very, very hard for corporations to make a plan on how to produce a
product for the next four to five years.”
Overmyer added, “So our members are sort of waiting – let’s see what happens
when the government sorts all these out. In the meantime, we’ll struggle along a
little bit as best as we can.”
He then talked about companies “moving on” if they cannot “live with this new
situation”. He said, “The real issue will come up when, the companies finally
sit down and say, okay, company by company, they will have to decide, can I live
with this new situation, or is it time for me to move on, and that’s when we
will get a better understanding of where the companies are.”
In response, the Manpower Ministry (MOM) said the decision to slow the
foreign manpower growth was actually made two years ago based on the Economic
Strategies Committee (ESC) report. The Committee was set up in 2009 to
recommended strategies to restructure the economy away from labour-intensive
growth towards productivity and innovation-led growth for sustainable and
inclusive development. MOM added that changes introduced had been gradual, with
transition time given to existing workers who are affected and for companies to
adapt.
MOM stressed that foreign workers remain valuable to Singapore’s workforce
and economy, but should avoid over-dependence. While the government moderate
growth of foreign manpower, it will continue to welcome skilled foreigners who
complement the local workforce. The aim is to encourage companies to raise
productivity for a more sustainable growth.
Indeed, eyebrows were raised when it was revealed that foreign workers were
making a basic pay of only $500 a month at Panasonic Singapore, resulting in the
workers protesting against the management (‘Over 100 PRC workers at Panasonic Singapore start a petition‘).
At $500 a month, it sounds more like the salary of cheap labour than that of a
skilled foreigner.
Phillip Overmyer has been the Chief Executive of SICC since 2003. He was
previously Vice President of Samuels International, an international consulting
firm specializing in business, trade and investment matters for 1 year in 2002.
He was its VP Asia Pacific of Concert Global Services. Before that, he was in
the telecommunications industry for nearly 30 years including 12 years based in
Singapore. He was the Vice President of Global Services for AT&T in
Asia.
.
Join our TRE facebook page here: http://www.facebook.com/TREmeritus
.
