SINGAPORE: Lifting labor force period limits , and raising the age ceiling does not lead to an increase in foreign worker numbers as Singapore’s work permits be reduced by quotas, economists said.
But the nation needs to reassess its social compact with its temporary immigrant labor, especially older employees who have lived here long and have more care requirements as well as social connections, some analysts said.
Starting in July, job permit holders will no longer have a maximum work period, which now ranges from 14 to 26 years depending on skill levels, market and where they are from. Staff from Malaysia, Hong Kong, Macau, South Korea and Taiwan now have no such limitations.
All job permit holders are also limited by a peak time, which will be raised to 63, aligning with the local retirement years.
Sector-specific foreign employee quotas – often referred to as dependency ratio ceilings – even remain intact, and these range from 35 per cent in the solutions industry to 83.3 per share in the design and operation sectors. The number of work force and S Pass recipients in a company cannot reach its industry’s quota.
As of June 2024, Singapore had about 843, 400 job permit holders, excluding home workers.
Labour economist Walter Theseira, an associate professor at the Singapore University of Social Sciences ( SUSS), said the policy is not about increasing numbers but optimising the composition of the workforce.
” The exact number will still be capped by the limit plan, but unless the quota is relaxed or firms are able to get more local manpower, there will not be growth in work permit holders”, he said.
Associate Professor ( Practice ) Terence Ho, also from SUSS, added that the change is meant to retain experienced workers and improve workforce quality.