Oct 15, 2024As times change and technology advances, industries across the board are evolving, presenting new dynamics. Similarly, Singapore’s manpower trends are undergoing a transformation. At SIG, we have noticed that, amidst this rapidly shifting labour market, employers and HR professionals are increasingly seeking clarity and guidance.
To better understand industry trends and improve service quality, SIG Tax & Accounting (SIG), in collaboration with Association of Small & Medium Enterprises (ASME), invited Dr. Koh Poh Koon, Singapore’s Senior Minister of State for Manpower and Senior Minister of State for Sustainability and the Environment, for a business dialogue on September 30, 2024. Invited business owners and HR representatives attended the dialogue. Also, ASME President, Mr. Ang Yuit and ASME Mandarin Chapter Chairwoman, Dr. Dora Hoan joined the discussion. The event, hosted by SIG and ASME, attracted over 150 attendees from various industries.
To address these trends, the government is committed to assisting businesses in their transformation journey. Resources are being provided to help employees upskill and meet the evolving demands of companies. The aim is to foster a mutual growth between businesses and their workforce.
Dr. Koh also highlighted that automation is becoming a critical trend, particularly for the manufacturing sector. The government will support businesses through this transition. However, it is critical for the companies to assess their challenges and determine what steps they should take. The government is offering grants for equipment purchases and employee training to alleviate concerns and facilitate the transformation process.
Q: Why are the salary thresholds for EP and S Pass continually rising, increasing employment costs for businesses that need to hire foreign workers?
A: The salary thresholds for EP and S Pass are based on the top third of local employee salaries. The increase reflects the rising wages of local employees and it is market-driven. Moreover, foreign workers should complement local talent, not replace them. The salary threshold is a reminder for employers to evaluate whether it is necessary to incur the higher cost of hiring foreign talent.
Q: What should companies do when transferring employees from overseas to Singapore if they fail to meet the EP COMPASS requirements?
A: The COMPASS framework makes the EP assessment more transparent. If an employee does not pass the COMPASS evaluation, the employer can either hire more local employees or raise the salary of the EP applicant. It’s a matter of balancing options. Additionally, the government encourages employers hiring foreign talents to fill roles where skills shortages exist, providing bonus points in the COMPASS evaluation for such hires.
Q: Which industries will the government strongly support over the next 3-5 years, and what are the key manpower trends?
A: The Singapore government has set aside SGD 4.5 billion for Industry Transformation Maps (ITMs) across 23 sectors, addressing industry-specific challenges. These plans outline how the government will support businesses in areas like internationalization, technology adoption, and workforce training.
*For more details, visit the Ministry of Trade and Industry (MTI): https://www.mti.gov.sg/ITMs/Overview
A: In terms of manpower trends, the government has developed 17 Job Transformation Maps (JTMs). With the emergence of new roles driven by technological progress, the JTMs address how current roles will evolve and how employees should upskill to meet future demands.
*For more information, visit the Workforce Singapore (WSG): https://www.wsg.gov.sg/home/employers-industry-partners/jobs-transformation-maps
The event fostered enthusiastic discussions, especially among Chinese companies based in Singapore, who had the rare opportunity to engage deeply with the Minister. After the event, lively conversations continued among attendees who highly praised the event, noting the valuable insights they gained and expressing eagerness for more such opportunities in the future.
At SIG, we not only provide essential support for overseas companies establishing themselves in Singapore, but also offer ongoing assistance throughout their local operations and growth. By connecting businesses with local chambers of commerce and government resources, we help them integrate into the local business environment, seize market opportunities, and thrive.
Looking ahead, SIG plans to host more engaging events. Stay tuned for updates, as we continue to offer valuable resources to support business growth. Follow SIG for the latest event news and invitations.
