by Leong Sze Hian/Terry Xu
Singapore’s need for foreign talent has long been a point of contention in public discourse, especially as it relates to the professional, managerial, executive, and technician (PMET) workforce.
Dr Tan See Leng, Minister for Manpower, reiterated this on 22 January 2025 in a radio interview with CNA938, highlighting the role of foreign professionals in Singapore’s economy while assuring the public of safeguards to protect local jobs. However, deeper scrutiny reveals a nuanced picture, particularly in how the statistics of “local employment growth” are calculated.
Dr Tan noted that Singapore’s PMET jobs for residents grew by 380,000 between 2013 and 2023. At the same time, the number of Employment Pass (EP) and S Pass holders increased by 38,000.
He asserted that each foreign professional hired indirectly created 10 job opportunities for locals.
Despite his assurance, a critical question remains: how many of the 380,000 resident PMET jobs were filled by native Singaporeans, and how many were taken up by permanent residents (PRs) who were previously foreign workers?
PRs and their impact on “local employment growth”
The National Population and Talent Division reported that Singapore granted an average of 32,600 permanent residencies per year between 2013 and 2023, totalling an estimated 326,000 over the decade. In 2023 alone, 34,491 individuals were granted PR status. Many of these PRs were likely already part of the local workforce, transitioning from foreign work pass holders to PRs.
When a foreign worker receives PR status, they are subsequently classified as part of “local employment.” This raises questions about how much of the PMET job growth attributed to residents was actually driven by native Singaporeans, as opposed to foreigners-turned-PRs.
Additionally, not all PRs in this period were active in the workforce. Some were students who later joined the workforce, while others retired, left Singapore, or passed away. These dynamics make it difficult to quantify the true share of native Singaporeans in the reported 380,000 jobs growth.
Broader implications for local workforce dynamics
Dr Tan’s assertion that every EP or S Pass holder generates 10 local PMET jobs warrants closer examination.
While foreign professionals undoubtedly contribute to economic growth and job creation, the exact mechanisms behind this claim are not always transparent. For example, how many of the generated local jobs were high-paying positions versus support roles? Additionally, the figures do not account for PMETs on other work passes, such as Work Permits or dependents who eventually join the workforce.
The introduction of frameworks like the Complementarity Assessment Framework (COMPASS) and the Fair Consideration Framework reflects an effort to ensure that foreign professionals complement the local workforce.
The COMPASS points system, effective from September 2023, evaluates Employment Pass applicants based on qualifications, firm nationality diversity, and local employment support. These measures, coupled with the Workplace Fairness Act set to take effect in 2026 or 2027, aim to address concerns about the displacement of local workers.
However, public confidence hinges on transparency. The government’s messaging must clarify how local employment statistics are derived, specifically distinguishing between native Singaporeans and PRs.
Without such clarity, debates over foreign workforce policies are unlikely to subside.
In fact, Progress Singapore Party Non-Constituency Member of Parliament (NCMP) Leong Mun Wai recently raised this issue in Parliament.
During the debate on the Workplace Fairness Bill, he asked, “Has the Government actually looked at this ratio again after stripping out the immigration effect? We know that this ratio is very corrupted, with original Singaporeans at the beginning of a period, new citizens that came in, and new PRs. So, there is a lot of immigration effect on these macro indicators. Did MOM look into a kind of pure indicator, rather than having all these effects and then now telling Singaporeans that the ratio has gone up from 50% to 60%?”
In response, Dr Tan repeated the same statistics he had shared in the interview with CNA938 and sidestepped Mr Leong’s question about how immigration affects these indicators.
Singapore’s open economy has long been reliant on foreign talent, but the social and political costs of this reliance are evident.
Frustration among native Singaporeans stems from perceived competition for jobs and housing, as well as concerns about stagnating wages in certain sectors. While government measures like COMPASS aim to mitigate these issues, they must be supplemented with policies that promote skills upgrading, wage growth, and clear opportunities for Singaporeans to excel in the workforce.
