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[h=2]Foreign PME levy to level the playing field[/h]
June 10th, 2014 |
Author: Contributions
The Government has said the economy would suffer if Singapore were to impose
restrictions on employment of foreign professionals, managers and executives
(PMEs), as companies would move to countries with lower PME costs.
Companies that are established here, though, would not move
out over just one cost factor — a foreign PME levy.
Singapore offers them many benefits to operate here, compared with elsewhere.
These include: Among the lowest corporate tax rates in the world, efficient
infrastructure such as air and sea ports and robust public utilities, clear and
effective business laws and a safe business environment — no burning of
factories, et cetera.
A levy would level the playing field and rebalance living standards between
local and foreign PMEs.
After all, Singaporeans have contributed to the said benefits for firms, by
doing National Service to ensure a safe environment. We also pay civil servants
and government officials well to ensure efficient business regulations and keep
corporate tax low.
Should the companies that choose to move away due to a foreign PME levy do
so, it is not worth holding them back.
Ultimately, if too many locals are allowed to be replaced by foreign PMEs,
the latter would eventually return to their home countries with enhanced skill
sets and experiences, further strengthening those economies, to the detriment of
Singapore.
Lim Kay
Soon
* Letter first appeared in
TodayOnline: Voices, 4 June 2014, “Singapore can consider levy on foreign
PMEs”
The Government has said the economy would suffer if Singapore were to impose
restrictions on employment of foreign professionals, managers and executives
(PMEs), as companies would move to countries with lower PME costs.
out over just one cost factor — a foreign PME levy.
Singapore offers them many benefits to operate here, compared with elsewhere.
These include: Among the lowest corporate tax rates in the world, efficient
infrastructure such as air and sea ports and robust public utilities, clear and
effective business laws and a safe business environment — no burning of
factories, et cetera.
A levy would level the playing field and rebalance living standards between
local and foreign PMEs.
After all, Singaporeans have contributed to the said benefits for firms, by
doing National Service to ensure a safe environment. We also pay civil servants
and government officials well to ensure efficient business regulations and keep
corporate tax low.
Should the companies that choose to move away due to a foreign PME levy do
so, it is not worth holding them back.
Ultimately, if too many locals are allowed to be replaced by foreign PMEs,
the latter would eventually return to their home countries with enhanced skill
sets and experiences, further strengthening those economies, to the detriment of
Singapore.
Lim Kay
Soon
* Letter first appeared in
TodayOnline: Voices, 4 June 2014, “Singapore can consider levy on foreign
PMEs”
