Around 20 per cent of firms in Singapore are foreign-owned, yet they employ 60 per cent of residents in high-earning jobs, according to the Ministry of Manpower (MOM).
Data released on 17 September 2024 shows that these positions pay over S$12,500 per month, placing workers in the top 10 per cent of income earners.
MOM emphasized the importance of foreign investments in driving business growth and improving the local job market. In the second quarter of 2024, foreign firms employed nearly one-third of the resident workforce, underscoring their critical role in Singapore’s labour market.
These foreign-owned firms—defined as having less than 50 per cent local equity—also create opportunities for small and medium-sized enterprises (SMEs), which hire the majority of resident workers—which comprises Singaporean and Permanent Resident workers.
Dr Tan See Leng, Minister for Manpower, highlighted the impact of foreign firms in a Facebook post on 17 September: “Foreign-owned firms comprise around 20% of companies in Singapore and provide jobs for nearly one-third of employed residents. They account for a disproportionate share of higher-paying jobs—employing six in 10 residents earning a gross monthly income of above S$12,500. We will continue to invest heavily in Singaporeans while building a complementary global talent pool.”
He pointed to examples like Acronis, a Singapore-founded cybersecurity firm that upskills its workforce through Workforce Singapore’s Career Conversion Programme.
However, Dr Tan has faced repeated calls for more transparency about the proportion of new jobs allocated to Singaporeans, especially in high-paying roles.
Parliamentary Exchange on Employment of Singaporean PMETs
During a parliamentary sitting on 2 April 2024, Workers’ Party MP for Aljunied, Mr Gerald Giam, questioned Dr Tan about the allocation of new jobs, particularly for Singaporean professionals, managers, executives, and technicians (PMETs).
Mr Giam sought clarification on how many of the 88,400 jobs created in 2023, especially in PMET roles, were filled by Singaporeans.
He highlighted that non-residents accounted for 83,500 of the total new jobs. Mr Giam pressed for details on what measures MOM would take to ensure that more positions in 2024 would go to Singaporeans, particularly older workers aged 40 and above.
However, Dr Tan avoided directly answering the question on the percentage of PMET roles filled by Singaporeans. Instead, he focused on defending the increase in foreign employment, arguing that Employment Pass (EP) and S Pass holders complement rather than displace local workers.
Dr Tan clarified that of the 83,500 new non-resident jobs created in 2023, 18,700 were higher-skilled roles filled by EP and S Pass holders, while the majority—64,800—were work permit holders in sectors such as construction, which Singaporeans typically avoid.
He stated that resident employment increased by 4,900 but did not specify how many of these were PMET roles. Despite multiple attempts by Mr Giam to obtain precise figures, Dr Tan did not provide specific data on how many Singaporeans were employed in PMET roles compared to foreign workers.
Minister Deflects Specifics on PMET Employment
When Mr Giam reiterated his request for details on how many PMET jobs went to Singaporeans, Dr Tan shifted the focus to Singapore’s low unemployment rate and its position as one of the top countries in resident employment among advanced economies. He noted that Singapore’s resident employment rate of 66.2 per cent and long-term unemployment rate of 0.8 per cent were among the lowest globally.
Dr Tan explained that the influx of foreign workers was necessary to meet the demands of a growing economy, particularly in sectors facing significant talent shortages.
He argued that attracting foreign talent and investments helps businesses thrive, which in turn creates jobs for Singaporeans. However, he did not directly address Mr Giam’s core question about how many of the new PMET positions were filled by Singaporeans, leaving the matter unresolved.
Mr Giam countered that the 4,900 jobs created for residents in 2023 covered the entire workforce, not just PMET roles. He expressed concerns that the government’s extensive investments and incentives to attract multinational companies (MNCs) might disproportionately benefit foreign workers over Singaporeans.
MOM’s Focus on Foreign Talent
In his response, Dr Tan emphasized that Singapore must remain open to foreign talent to sustain economic growth, especially as the resident workforce shrinks due to demographic changes.
He rejected the notion of a “zero-sum game” between local and foreign workers, arguing that businesses need access to both local and foreign talent to remain competitive. He defended the government’s strategy of setting EP and S Pass salary benchmarks to ensure fair competition for local PMETs.
Nevertheless, Dr Tan’s refusal to provide specific data on the employment of Singaporeans in PMET roles has raised concerns about the transparency of MOM’s job allocation strategies.
Despite the government’s efforts to balance local employment with the need for foreign talent, questions persist about whether Singaporeans are benefiting proportionally from the country’s job growth.
