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
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Kelly Ng
Singapore
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.
The Ministry of Manpower (MOM) on Thursday announced that the salary floor for EP holders in finance will be raised to S$5,000 from December, setting the bar S$500 higher than the tightened criteria for other sectors in the economy.
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