Fairer Employment Pass System to protect Locals in the Workforce

Today's Headlines - Singapore: Move towards fairer hiring with tighter EP System
Singapore is to tighten the Employment Pass (EP) framework for hiring of foreigners later this year. This is to ensure a level playing field for citizens in the workforce and build up a Singapore core.

Particularly affected are the junior to mid-level Professionals, Managers and Executives (PMEs).

The intent of this latest framework is to:-

*  Level the playing field for junior to mid-level PMEs
*  Build in more safeguards against discriminatory hiring
*  Put in place fair practices


Many Singaporean were affected one way or another:-

*  Sacrifice work-life balance.owing to pressure from foreigners who are willing to
    work longer hours without overtime compensation. For many foreigner PMEs,
    their family is not here, and work is their primary hobby.

*  Change in work nature and job scope. Locals being pressurised to take on multiple
    tasks and responsibilities within the same position that they have always held or
    face being replaced by a foreigner.

*  Pay rise stagnant or at its minimum owing to competition from foreigners with same
    qualifications but are willing to take lower pay

*  Promotional prospects reduced to nil. Deprive locals of senior positions. 

*  Company perks like educational and work trips abroad are being snatched by
    foreigners, particularly if they are familiar with the culture of the overseas country -
    since they hail from those countries. This deprives locals of opportunities to learn on
    the job.

*  Discriminatory practice by category: Foreign bosses who prefer to hire their own
    foreign compatriots.  Without proper legislation, there is nothing to remind foreign
    firms and foreigners working here of the social compact responsibility to the local
    communities.

*  Discriminatory practice by age: Singaporeans in their 40s and 50s being overlooked
    in favour of younger 'foreign talents' in their 20s and 30s. This happens during job
    application, as well as while still holding the job.

*  Retrenched or forced to leave job due to displacement by foreign worker.  Often, the
    foreign worker is recruited directly from local Singapore universities. 

*  The perks for foreigners are plentiful. 
    Eligibility to apply for Permanent Residence (PR). 
    Buy cars, government housing and land in Singapore.
    Option to convert to Citizenship. 
    For some foreign nationals, the usefulness of the Singapore passport to apply for
    work in USA, and subsequently apply for the US Green Card is hugh. 
    In many cases, they even reinstate the original citizenship of their native country. 


Singapore is not closing itself off to opportunities. It is not insisting that companies hire citizens regardless of merit.  But at the rate it was going for the past few years, many locals are disadvantaged.  Many local parents are worried about the future of their kids.  If we now live in a workforce where the average common locals are being squeezed out by foreigners, how much worse would it be when it comes to the kids' turn?

In particular, a group that needs protection are the PMEs in their 40s and 50s. The Singapore workforce worships youth. Many in this age group who find themselves expelled prematurely out of the workforce has difficulty landing the same kind of job - ever again. If the reason for having to leave a company that one is committed to, is due to the impact of foreign PMEs, then something has failed in the system.

Some safeguards are in place, and the eligibility requirements for the affected sector will be tightened:-

*  Minimum income for Q1 Pass S$3,000, up from S$2,800.
*  Suspension of work pass privileges.
*  Whistle-blowing unit.
*  The number of foreign workers a company can hire is tied to the number of full-time
    local workers it has.  Under this quota, there is a minimum salary that the full-time
    local workers has to be paid.

REACH, the Government's feedback channel for Singaporeans to air their views and suggestions on policies and national issues, announced March 18, 2013, that in a telephone poll of 927 citizens, close to 9 in 10 respondents were supportive of measures to tighten foreign worker inflow:

*  86.6% support measures to raise Foreign Worker Levies
*  89.3% support reducing the Dependency Ratio Ceiling in the Service and
    Marine sectors
*  88.5% support tightening the criteria for S Passes and Employment Passes
*  69% support the Wage Credit Scheme, in which the government co-funds
    the wage increases for Singaporean employees earning up to a gross monthly
    wage of S$4,000, to encourage businesses to raise wages of these Singaporeans.

Email reach@reach.gov.sg to register for public dialogues.

SME Red Tapes

Forum - Straits Times: Set up body to look after SMEs' needs

ST reader Tay Boon Suat made several good points in his letter:-

*  There are 160,000 SMEs in Singapore. 

*  Many SME bosses have to visit various government agencies to resolve issues.

*  Although there are Aid agencies like Spring Singapore, Singapore Workforce

    Development Agency, etc., many SMEs are unable to tap it owing to lack of

    appropriate help.

*  SMEs contribute about half of Singapore's gross domestic products, so they deserve

    a dedicated body to take care of their needs.

*  He suggests that the Government consider setting up an SME board, similar to

    those in Britain and Germany, to look after the sector's future development and

    well-being.

The purpose of such a board should ideally be to:-

*  Take charge of the development of SMEs

*  Coordination with other industry sectors

*  Become the single government agency to direct the SMEs to the appropriate help.

*  Help SMEs tap the relevant aid schemes

*  Coordinate information and schedules of all courses relevant to SMEs

He is correct.  To set up an SME, a business has to deal with quite an assortment of agencies:-

*  ACRA (Accounting and Corporate Regulatory Authority)

    Although the guys at ACRA are immersely helpful, and willing to stick it out until you get

    it, we surrender and just resort to a Secretarial Firm to help us register the licence.

    For specific businesses like money changers, travel agencies etc., you deal with the

    other related agencies as well.

*  Secretarial Companies

    We shop around 5-6 places before landing with an ideal one that has friendlier staff.

    It sure makes life simpler when a supportive team handles complex stuff which

    requires explanation. We avoid those with itemized charges, and chose a package

    that also covers basic accounting requirements.

*  Banks with Corporate Banking Facilities

    There is one bank that has very very poor service!

    It's mentioned in forums.

    We went for it as it seems to suit out needs, then find the bank's errors ends up

    clogging time and cluttering paperwork.

    Don't touch it!

*  IRAS (Inland Revenue Authority of Singapore)

    During initial registration, the e-Services Authorisation System (EASY) Access Code

    actually turns out to be not so easy. It involves a trip to IRAS's Revenue House at 55

    Newton Road, before we figure out where this EASY Access Code comes into the

    picture.

    They are very helpful folks, even when you call by phone. 

    They have enabled simpler form of SME reporting for some SMEs, one of which is

    by abolishing the need to file ECI (Estimated Chargeable Income).

    Nevertheless, we also surrender and just hire an Accounting Firm to do the

    tax-related works.

*  AGD (Accountant-General's Department, Singapore).

    We knew the Attorney-General of Singapore's office exists.

    But we never knew the existence of the Accountant-General's Department until we

    become SME. We had some tricky acts dealing with bank codes and other stuff, but

    the lady there resolves it well. 

      

*  CPF Board

    Payroll matters if you need to pay CPF and Medisave to staff.

    There are penalties for late payment.

    You can pay an Accounting Firm for this accountancy service as well.

*  GeBIZ (Government Electronic Business)  

    In order to bid for Government projects, you need to first register with GeBIZ

    (Government Electronic Business) as a Government Supplier (GeBIZ Trading

    Partner).

*  EPPU (Expenditure and Policies Procurement Unit)

    For some tenders, you may also need to be registered as an Expenditure and Policies

    Procurement Unit (EPPU) Supplier or Building and Construction Authority (BCA)

    Supplier. Select the appropriate EPPU categories of Supply Heads.

   

    Next, pay and submit to the ACRA-appointed agency.

    Await confirmation of the minimum Financial Grades required for tender qualification.

*  Aid Agencies for sponsorship, courses, appropriate help.

    Helter Skelter encounter for many.

    With so many processes and strings attached, tenacity is required before help is found.

So despite having good secretariat and accounting support, SME bosses still have quite a bit of homework to do on their own.  

An SME hub where all the related agencies are represented would help immensely.