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Singapore Labor Issues

3 min read|Last Updated: August 5, 2022|
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Labour issues are common, even for an economic powerhouse and corporate hub like Singapore, who is a triple-A rated economy and a good place for business expansion and company incorporation. Some of the labour issues that Singapore faces are as follows.

Is There Labor Shortage in Singapore

One of the issues is there is a shortage of labour. There are 3 key reasons why this is so, namely:

  • Rapidly aging population

    The average age of the Singapore population has been increasing. This means that there will be fewer youths who will enter the workforce.

  • Tighter regulations of foreign workers

    Stricter measures were implemented to regulate the entry of foreign workers. As such, it became more difficult for foreign workers to receive an S Pass or Work Permit. The government also introduced a law that requires all businesses in Singapore to prioritise locals when hiring. 

  • Mismatch of skills

    The skills most sought by the job market are mostly not the most common, leading to a gap between employers and prospective employees. Upskilling programmes have been initiated to bridge this gap.

Gender Inequality

As like most countries, gender inequality remains a key issue in Singapore. The average woman who works in Singapore full-time earns just 87.5% of what her male counterparts earns. This is more common in the following industries:

  • Manufacturing  
  • Accommodation  
  • Healthcare  
  • Social services 
  • Information & Communications 
  • Food services

If you’re interested in starting a business in these industries, you should know that doing so requires a license. Reach out to us to get your business license in Singapore, along with other services like corporate secretarytaxation, and more! 

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Wan Yi

Such gender inequality encourages local women to go abroad to work and achieve their career goals.

Lack of Social Support for Foreigners

Many foreigners working in Singapore do not have high levels of social support and they are unsure of their rightsSome of the issues that they may face are:

  • Unjust treatment from employees

  • Unsafe working conditions

However, the government and authorities are doing their best to resolve these situations. This is another reason why there is a labour shortage in Singapore.

Despite these issues, Singapore is still a good place to work as it boasts a thriving economy. 

If you are a foreigner who would like to work in Singapore, we can assist you in getting your employment pass and necessary documents! Chat with us to find out more.

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Can I run an online business without incorporating in Singapore?2020-11-20T11:59:02+08:00

Nope, you must register a company to run your online business. 

As a foreigner, can I be the shareholder of the company?2020-11-20T11:58:47+08:00

Yes, you can. 

Is it mandatory to have a Singaporean/ PR to incorporate a company in Singapore?2020-11-20T11:58:34+08:00

Yes, to incorporate a company in Singapore, you need at least one local resident. As a foreigner, you can appoint a nominee director or get an employment pass. 

What are the popular businesses in Singapore?2020-11-20T11:54:51+08:00

Some of the popular businesses in Singapore are laundry, online marketing, e-commerce, financial services, cleaning service, content writing and consulting. 

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