MOM does not “micro-manage” foreign work pass numbers: Tan See Leng

SINGAPORE does not change the number of foreign work passes it issues in response to business fluctuations, said Manpower Minister Tan See Leng on Wednesday (Feb 22), in response to a question about the jobs outlook in the information and communications (I&C) sector.

In a written reply to Workers’ Party Member of Parliament Gerald Giam (Aljunied GRC), Dr Tan noted that recent retrenchments by Big Tech companies have caused concerns about the sector’s outlook, adding that the Manpower Ministry (MOM) is “closely monitoring the situation”.

Giam had asked if the I&C job market was shrinking, and if so, whether MOM has issued fewer Employment Passes (EPs) and S Passes to foreigners seeking jobs in the sector.

Based on the latest available data, total employment in the sector grew by 13,700 in the first three quarters of 2022, said Dr Tan. But given global headwinds, MOM expects “a dampening in hiring demand and a slower increase in total employment” in the fourth quarter.

Even if the I&C sector shrinks, however, the MOM would not therefore reduce its issuance of foreign work passes, said Dr Tan: “MOM does not and should not micro-manage how the job market functions by directly and arbitrarily adjusting the number of EPs and S Passes issued in response to business fluctuations.”

“Adopting such a protectionist measure would cause significant business uncertainty, and undermine Singapore’s reputation as a transparent, competitive, and reliable location for businesses,” he added.

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Dr Tan said that Singapore’s policies are designed “to safeguard good local employment outcomes across the business cycle”, with a “quality benchmark” for EP and S Pass holders, as well as incentives to hire and retain locals.

MOM remains “cautiously optimistic about the long-term prospects of the I&C sector” as tech firms continue to use Singapore as a base to pursue opportunities in South-east Asia’s growing digital economy, he added. “Tech skills also continue to be in high demand both within and beyond the I&C sector as the pace of digitalisation accelerates across our economy.”