Restrictions on the Hiring of Foreigners by Singapore Companies

Many people from all over the world have come to Singapore to work. This fact is to be expected because there are many benefits which any foreigner could derive from living and working in Singapore. The country’s low tax rates, high standard of living, many employment and business opportunities, openness to foreigners and their contributions to the country, and vibrant and robust economy have drawn many foreigners to the country. Thus, many foreigners who understand this fact have identified Singapore as a suitable location in which they may forge a career. However, such a large number of foreigners have entered Singapore that the labor market of Singapore has become oversaturated. In order to curb this over saturation, the government of Singapore has introduced a quota system.

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Singapore’s Quota System

The quota system in Singapore sets a restriction upon employers in the country. Every employer in Singapore is to hire a number of foreign workers which does not exceed the limit stated by the government. The details of the quota regarding the quantity of foreign workers are dependent on the industry of which the company is a part. The government of Singapore had specific reasons in mind when it introduced the quota system. However, it should be noted that the quota system only applies to holders of an S Pass; those who are holders of an Employment Pass (EP), Entrepreneur Pass (EntrePass), or Personalized Employment Pass (PEP) are unaffected by the restrictions imposed by the quota system.

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Prevention of Job Market Oversaturation

As has been mentioned, the large number of foreigners who leave their country to live and work in Singapore has fundamentally altered the country’s job market. Although this is a positive sign for the country because it proves that Singapore’s job market is thriving and attractive to people from all corners of the world, it also presents a challenge for the government as well as labor authorities and employers. This is because the large influx of foreigners has caused the job market to become oversaturated. In many instances, there are more people applying to work in Singapore than there are openings for employment. Not only does this mean that some foreigners who come to Singapore to find work will not be able to do so, but even some locals who are interested in finding a job will find doing so more difficult than ever before. Thus, to facilitate the employment of locals and ensure that Singapore citizens and permanent residents are more likely to be legally employed, the government imposed the quota system so as to strike a balance between the employment of foreigners and locals.

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Encouragement of the Entry of High-Earning Foreigners

The more money a foreign worker earns, the greater the level of contribution which that worker could make to the Singaporean economy. A typical S Pass holder does not earn as much as does a typical EntrePass, EP, or PEP holder. Thus, the government of Singapore imposed the quota system on foreigners who are S Pass holders but chose not to apply this quota system to holders of Singapore’s other work visas. The government believes that these higher-earning foreigners are capable of making significant contributions to the country’s economic success; thus, it does not believe that there ought to be a restriction on such workers who enter the country.

One of the visas which is not subject to the quota system is the Employment Pass. We at Paul Hype Page & Co are able to help supply any interested foreigner with an Employment Pass of their own if they fulfill all of the government’s criteria. Any foreigner who earns at least S$4,500 per month, has graduated from university, and possesses the requisite work experience is eligible to receive an Employment Pass. We will assist any such foreigner with the receiving of this crucial Singapore work visa.

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