- Joined
- Mar 12, 2009
- Messages
- 13,160
- Points
- 0
Singapore bosses worry that hike in foreign worker levies will increase labor costs
February 24, 2010 by admin
The recent hike in the foreign worker levies has not gone down well with some Singapore bosses who fear that the ”measures will increase labour costs and make it hard to find enough staff to undertake the kind of work Singaporeans shun.”
Faced with a potential backlash from angry voters in the next general election, the ruling party has introduced some cosmetic changes to its much maligned pro-foreigner policy to “sharpen the distinction between foreigners and citizens.”
Under the new scheme, levies will increase by about an average of $100 for each Work Permit holder – except those in construction – over three years. Rates for S Pass holders – workers with mid-level skills – will at least double from the current rate of $50 per month.
As expected, the Straits Times tried to spin a story today to win public sympathy for the affected employers.
Tai Hua Food Industries managing director Thomas Pek said the changes to levy rates and tiers for Work Permit holders will hurt the home-grown soya sauce manufacturer:
“If the Government decides to revise the levy tiers, then they should at least leave the levy rates alone and not revise both at the same time,’ said Mr Pek. For example, the fermentation process requires workers to operate in a very hot environment, which no Singaporeans would want to do,” he added.
The Straits Times followed with a misleading sentence:
“Like many others in labour-intensive industries, Mr Pek finds it hard to get locals to replace foreigners in key functions at his Jalan Besut plant.”
If Mr Pek had offered decent wages, it is highly unlikely that he is unable to find Singaporeans to work for him.
The superficial changes made to the foreign worker levies will not affect his profit margin by much. After all, he can easily pass the increased labor costs back to the workers and customers.
Singaporeans should not be deceived yet again by the ruling party’s desperate attempts to win their votes. The measures taken so far will not have any impact on the inflow of foreigners into Singapore.
Foreigners on S-passes will continue to compete directly with Singaporeans for jobs which can otherwise be taken up by them and the slight raise in levy will not deter employers from hiring them since they can get two foreign workers for the price of one Singaporean.
Furthermore, the quota rules can be easily circumvented by getting earlier arrivals to apply for Singapore PRs which are usually approved promptly.
Ultimately, it is the ruling party which will benefit most from the foreign worker levy hike and not ordinary Singapore and foreign workers.
February 24, 2010 by admin
The recent hike in the foreign worker levies has not gone down well with some Singapore bosses who fear that the ”measures will increase labour costs and make it hard to find enough staff to undertake the kind of work Singaporeans shun.”
Faced with a potential backlash from angry voters in the next general election, the ruling party has introduced some cosmetic changes to its much maligned pro-foreigner policy to “sharpen the distinction between foreigners and citizens.”
Under the new scheme, levies will increase by about an average of $100 for each Work Permit holder – except those in construction – over three years. Rates for S Pass holders – workers with mid-level skills – will at least double from the current rate of $50 per month.
As expected, the Straits Times tried to spin a story today to win public sympathy for the affected employers.
Tai Hua Food Industries managing director Thomas Pek said the changes to levy rates and tiers for Work Permit holders will hurt the home-grown soya sauce manufacturer:
“If the Government decides to revise the levy tiers, then they should at least leave the levy rates alone and not revise both at the same time,’ said Mr Pek. For example, the fermentation process requires workers to operate in a very hot environment, which no Singaporeans would want to do,” he added.
The Straits Times followed with a misleading sentence:
“Like many others in labour-intensive industries, Mr Pek finds it hard to get locals to replace foreigners in key functions at his Jalan Besut plant.”
If Mr Pek had offered decent wages, it is highly unlikely that he is unable to find Singaporeans to work for him.
The superficial changes made to the foreign worker levies will not affect his profit margin by much. After all, he can easily pass the increased labor costs back to the workers and customers.
Singaporeans should not be deceived yet again by the ruling party’s desperate attempts to win their votes. The measures taken so far will not have any impact on the inflow of foreigners into Singapore.
Foreigners on S-passes will continue to compete directly with Singaporeans for jobs which can otherwise be taken up by them and the slight raise in levy will not deter employers from hiring them since they can get two foreign workers for the price of one Singaporean.
Furthermore, the quota rules can be easily circumvented by getting earlier arrivals to apply for Singapore PRs which are usually approved promptly.
Ultimately, it is the ruling party which will benefit most from the foreign worker levy hike and not ordinary Singapore and foreign workers.
