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- Oct 5, 2018
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Most companies will be considered very stupid or short-sighted to abuse this scheme to "fake hire" Singapore citizens because the employer and employees still need to contribute CPF based on the gross salary.
From the way I see it, if PRs are considered locals, this scheme is a huge incentive for HR to tell EP and S-Pass holders to convert to PRs. $30000 is a huge subsidy. When PRs leave Singapore for good, they can withdraw from CPF. It will make local employment numbers look good by including PRs and in the event that these PRs convert to citizens, they will strengthen the support for the incumbent.
From the way I see it, if PRs are considered locals, this scheme is a huge incentive for HR to tell EP and S-Pass holders to convert to PRs. $30000 is a huge subsidy. When PRs leave Singapore for good, they can withdraw from CPF. It will make local employment numbers look good by including PRs and in the event that these PRs convert to citizens, they will strengthen the support for the incumbent.