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Higher salary floor for foreign hires may put financial hub aspirations at risk

Over time, higher wage costs and smaller pool of talent might put off financial institutions investing and expanding in Singapore, say economists

The biggest concern would be firms outsourcing operations to third countries or just packing up and leaving instead of hiring Singaporeans, said Walter Theseira, an economics professor at SUSS.


RAISING the salary threshold for Employment Passes (EPs) amid recessionary pressures can encourage financial institutions to hire locals, but some economists think such a "protectionist response" can crimp Singapore's financial hub aspirations in the long run.


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