Search
Contact
Login
Share this article
IMPACT – MEDIUM
What is the change? Singapore’s Ministry of Manpower has said that work pass applicants who had not yet found housing can use their office address when submitting an application.
What does the change mean? The change amends rules that were put in place last year that required work pass applicants to include their residential address when issuing a work pass. Applicants can use their office address temporarily, however, they should update their address with the MOM once they find long-term housing.
Background: Last year, the MOM instituted new rules aimed at ensuring that work pass applicants were meeting Singapore’s housing requirements for foreign employees. One of these rules required applicants to include their residential address as part of the formalities to issue the work pass after receiving the approval to the application. Applicants who did not yet have long-term housing were supposed to provide the address of their hotel or service apartment. This has now changed, and applicants without long-term housing can provide their office address during the application process.
Analysis & Comments: Employers are encouraged to work with employees and work pass applicants to make sure their housing meets housing requirements for foreign employees. Failure to meet Singapore’s housing standards could lead to delays in processing. Employers are reminded that work pass holders who did not include their residential address on their initial application should update their address with the MOM once they move into long-term housing such as HDB flats or private residential premises (e.g., condos, landed residential properties, terrace houses, semi-detached houses or bungalows).
Source: Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2019. For information, contact Deloitte Touche Tohmatsu Limited.
What is the change? Singapore has launched a trial version of its electronic arrival card.
What does the change mean? International visitors entering Singapore via selected air, bus and ferry operators may complete their arrival card electronically by submitting their personal information and trip details via web or mobile app up to 14 days prior to arrival. This will replace the paper disembarkation/embarkation card.
Background: The first trial of the electronic arrival card was launched October 2018, and current trials aim to move Singapore towards a paperless system that streamlines processes, reduces paper forms and retains passenger information within government databases. The electronic arrival card requires information such as the traveler’s name, local address, and travel document number. Information submitted electronically can be retrieved for future trips.
According to the Ministry of Manpower, foreigners who have been issued In-Principle Approval letters for their work and related pass applications will not be eligible for the trial and must complete paper disembarkation/embarkation cards.
Additionally, the change does not affect Singaporeans, permanent residents and long-term pass holders (e.g., students and workers) who are returning to Singapore, as they do not need to submit any disembarkation/embarkation card.
The below table lists the selected air, bus and ferry operators that are eligible for the program:
Selected transport operators:
Analysis & Comments: The move toward a paperless immigration clearance system is good news for many travelers because it eliminates the need to carry and present the paper disembarkation/embarkation card to border officers. The Immigration and Checkpoints Authority plans to expand the program to all travelers by 2021.
Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2019. For information, contact Deloitte Touche Tohmatsu Limited.
What is the change? Singapore has announced plans for a pilot program to ease immigration requirements for tech workers.
What does the change mean? The program, called Tech@SG, is set to launch in the fourth quarter of 2019. The program was designed to ease Employment Pass requirements for “core team members” of certain tech firms, with a focus on those in high-growth areas such as digital, medtech, biotech, cleantech, agritech and fintech.
Additional information: Singapore’s Economic Development Board (EDB) and Enterprise Singapore announced the program in a statement released July 30. Few specifics were included on how the program will ease Employment Permit requirements, but the Straits Times quoted an EDB spokesman who said changes to the program could include “considering alternative factors in the application if needed, such as the stock options remuneration of the core team members, or if they have deep skills in place of formal academic qualifications.”
Singapore has stressed the importance of developing its local workforce. Chng Kai Fong, EDB Managing Director, said in the statement that the program will not only help companies fill their workforce needs, but will also create opportunities for local workers “to work in globally competitive teams alongside top engineers and entrepreneurs from all over the world.”
Analysis & Comments: The creation of Tech@SG is a major policy development for Singapore that could help tech companies meet workforce needs and remain globally competitive. Additional information is expected in the lead-up to the program’s implementation. Updates will be provided as information becomes available.
Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services.
This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2019. For information, contact Deloitte Touche Tohmatsu Limited.
IMPACT – LOW
What is the change? The Ministry of Manpower has announced new workplace hours.
What does the change mean? Starting June 3, the Ministry of Manpower Service Centre (MOMSC) Hall C and Employment Pass Service Centre (EPSC) will operate 8 a.m. to 5:30 p.m. Monday through Friday and will no longer open later on Tuesdays and Thursdays evenings.
Analysis & Comments: Employers should account for the new hours and note that offices will close at 5:30 p.m. daily.
Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.
What is the change? Singapore is experiencing delays in processing Verification of Vaccination Requirements for dependent, student and long-term pass applications.
What does the change mean? Foreign-born children up to the age of 12 applying for a dependent’s pass, long-term visit pass or student’s pass may experience delays of up to 20 working days due to a heavy influx of vaccination verification applications received by the Health Promotion Board.
Background: Effective Feb. 1, foreign-born children ages 12 and younger who are applying for a dependent’s pass, long-term visit pass or student’s pass are required to show proof of vaccination against diphtheria and measles. While the vaccination verification stage was initially expected to require up to 10 days, it is taking much longer — sometimes up to 20 working days.
Analysis & Comments: Foreign nationals with children ages 12 and younger should prepare for processing delays during the vaccination verification stage and should plan to present proof of their children’s immunization records, including the measles and diphtheria vaccinations, as early as possible to the authorities.
What is the change? Singapore’s Local Qualifying Salary will increase on July 1.
What does the change mean? Beginning July 1, local workers will be required to earn at least 1,300 Singapore dollars (about US$960) per month to be considered full employees for quota purposes. Locals earning between SG$650 and SG$1,300 will be considered one half of a local employee when calculating the quota entitlement.
Background: Singapore promotes the localization of its workforce by imposing quotas on the number of foreign employees companies can hire based on the number of local workers (Singaporean citizens or permanent residents) they employ. The Local Qualifying Salary, the minimum salary that employees must be paid to be considered in the quota calculation, is currently SG$1,200 per month for a full employee and between SG$600 to SG$1,200 per month to be considered one half of an employee.
Analysis & Comments: Employers should take the new salary thresholds into account when planning budgets and calculating foreign worker quotas. Employers should also note that the pending increase has no bearing on minimum monthly salaries for foreign nationals.
What is the change? Employers are reminded that a new fee schedule for work passes and related passes will soon take effect.
What does the change mean? Administrative fees for Employment Passes, S Passes, Work Permits and other passes will increase April 1.
Some of the relevant fees are highlighted below (all figures in Singapore dollars):
A full list of the fee changes is available here.
Analysis & Comments: Companies should factor the fee increases into their budgets and, if possible, consider filing affected applications before the rate hikes take effect.
IMPACT – HIGH
What is the change? The Singaporean government will reduce the ratio of foreign workers in the service sector in 2020 and 2021, according to the new budget.
What does the change mean? Beginning Jan. 1, 2020, companies in the service industry will only be permitted to employ foreign workers (work permit holders) up to a cap of 38 percent of their total workforce and starting Jan. 1, 2021 the cap will drop to 35 percent. The current cap is 40 percent.
For companies in the service sector sponsoring S-Pass holders, the percentage will also be reduced—to 13 percent starting Jan. 1, 2020 and to 10 percent starting Jan. 1, 2021. The current cap on S Pass holders is 15 percent of a company’s workforce.
For companies in the marine shipyard and processing industries, foreign worker levies that were expected to take effect this year will be deferred to 2020.
Background: The allowable percentage of foreign workers to Singaporean workers is expressed as the Dependency Ratio Ceiling, or DRC. The following chart shows the adjustment to the DRC in coming years for the service sector only. The DRC in other sectors will remain at their current rates (60 percent for manufacturing, 87.5 percent for construction and processing and 77.8 percent for the marine shipyard sector).
Analysis & Comments: The government has made consistent efforts to focus on strengthening the Singaporean core and improve efficiency through the deployment of technology to innovate and automate. Therefore, the announcement on tightening the foreign workforce quota in the services sector is not unexpected. In addition, the reduction in the DRC is aimed at encouraging employers in the services sector to enhance their Singaporean workforce by hiring and training more Singaporean workers with skills transfers from foreign employees.
What is the compliance reminder? Singapore’s Ministry of Manpower recently announced the arrests of 33 foreign workers for submitting forged certificates in connection with work pass applications between 2016 and 2018.
What does it mean? Employers and individuals are reminded that it is illegal under the Employment of Foreign Manpower Act to submit, or be involved in procuring, false educational credentials. MOM continues to aggressively pursue prosecutions for any work pass violations, including taking a risk-based approach by conducting additional checks on selected applications.
Background: In 2012, MOM amended the Employment of Foreign Manpower Act to make the falsification of academic qualifications to the Controller of Work Passes a standalone offense. For employees, the maximum penalty is a fine of up to 20,000 Singapore dollars (about US$14,000) or imprisonment of up to two years, or both. If investigations reveal the employer was involved in the deception, MOM will prosecute the employer as well.
Analysis & Comments: Employers are reminded that MOM takes work permit violations seriously and has stepped up prosecutions in this area. Credentials from any higher-educational institution that are not on MOM’s approved list may be considered a red flag by authorities, and employers are may be asked for additional documentation. Employers are reminded that the verification process for academic credentials is strictly regulated and affects a large number of employees. The penalties for employees who forge credentials include blacklisting for all future Singapore passes. Employers found to be in noncompliance may also risk blacklisting and may not be able to sponsor work passes for other foreign nationals.
What is the change? The Ministry of Manpower has introduced a new process for foreign dependents of Singapore citizens or permanent residents, who are now eligible for a Preapproved Letter of Consent authorizing them to continue to work in the country.
Background: The one-month Preapproved Letter of Consent provides a work authorization bridge for those converting from a work pass to a long-term visit pass. This is because once the long-term visit pass is issued, the existing work pass is automatically canceled and the holder will have to obtain a new work authorization tied to their long-term visit pass that was sponsored under their spouse’s Singapore or permanent resident status.
Analysis & Comments: This a positive change for spouses of Singapore citizens and permanent residents, who are now eligible for a one-month interim work authorization to ensure that there is no work gap. Employees and employers need to ensure that their work authorization does not lapse while waiting for the process of converting the Preapproved Letter of Consent, which is valid for one month, to a long-term Letter of Consent that is typically tied to the validity of the long-term visit pass.