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IMPACT – MEDIUM
What is the change? The Ministry of Manpower’s recently released Labour Market Report 2017 shows that Singapore last year had its first decline in total employment since 2003.
What does the change mean? The report attributes the decline in total employment to lower numbers of foreign work permit holders in the marine and construction industries. Foreign employment in Singapore (not counting foreign domestic workers) decreased by about 32,000, or 2.8 percent, in 2017. Last year, foreign employment in Singapore contracted for the first time in years with a decrease of about 2,500, or 0.2 percent, from 2016.
Key statistics:
Background: Following predictions for weaker job growth in the next three to five years, the Singaporean government has increased its focus on protecting local workers. In February 2017, the government announced that it would integrate the Jobs Bank portal with the SkillsFuture platform, allowing Singaporean workers to search for training opportunities and job vacancies at the same time. The country has long stressed the importance of not only developing a strong local workforce, but developing employee-lean operations, with officials saying that Singapore’s limited workforce could be a “bottleneck” to growth.
Authorities also expanded the number of companies on MOM’s watch list of employers who fail to give fair consideration to local workers from 100 companies last year to 250. The list was created following the 2014 introduction of the Fair Consideration Framework, which requires that employers provide fair consideration to Singaporean job candidates and fulfill local advertising criteria before hiring a foreign national for a job opening.
BAL Analysis: All indications point to a continued government focus on promoting the local workforce, which may lead to greater scrutiny of foreign workers and employment pass applications to ensure that companies do not discriminate against local job applicants. Foreign workers are still in demand in Singapore due to a potential bottleneck in local employment growth.
This alert has been provided by the BAL Global Practice group in Singapore. For additional information, please contact singapore@bal.com.
Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
IMPACT – HIGH
What is the change? CorpPass and SingPass experienced technical problems Thursday and Friday that left users unable to use the authentication services to access Employment Pass Online.
What does the change mean? The problems left EPOL users unable to complete employment pass and S-Pass related transactions, including filing applications.
Background: CorpPass and SingPass were disrupted intermittently Thursday before they were taken offline for maintenance. Media outlets reported that the problem was caused by a “server fault” and not a cyberattack of any kind. Officials said in a Facebook post the problems had been resolved as of 3:15 p.m. local time on Friday, but some users continued to report problems.
BAL Analysis: Those needing to use CorpPass or SingPass to access EPOL should expect delays. CorpPass and SingPass users can check this GovTech page for up-to-date information.
What is the change? The Ministry of Manpower has said it will only accept requests to update employee salary information during the employment pass renewal process unless the salary reaches the level required for the pass holder to sponsor family members. Employers who do raise salaries in order for an employee to bring a dependent to Singapore will be required to use the iSubmit system to submit the request.
What does the change mean? Employers who raise an employee’s salary in order to apply for dependent must use iSubmit and should be prepared to submit (1) a written request on company letterhead that is signed by the employer and pass holder, (2) the pass holder’s payslips for the previous three months and (3) a copy of the pass holder’s IRAS statement.
Background: Until now, employers were able to update salary information at renewal, but could also submit requests at any point. With the new change, however, salary updates will only be accepted at renewal or if the salary change affects a pass holder’s ability to sponsor a family member. Singapore recently raised the minimum salaries required for employment pass and S pass holders to sponsor family members. Employees are now required to earn a minimum fixed monthly salary of 6,000 Singapore dollars (about US$4,585) to sponsor a spouse or child on dependent’s passes and 12,000 Singapore dollars to sponsor parents on long-term visit passes.
BAL Analysis: Employers will only be able to submit requests to update salary information during the pass renewal process or in cases where the employee reaches the threshold required to sponsor a family member. Employers should be prepared to gather the required documentation and submit salary change requests via iSubmit.
What is the change? The Ministry of Manpower will soon begin requiring individual contact information as part of the application process for Employment Passes, S Passes, Dependant’s Passes and Long Term Visit Passes.
What does the change mean? Beginning Friday, employers will be required to provide pass holders’ email addresses when completing the application process. Renewals and reissuances will require both an email address and a Singapore mobile phone number. Pass holder contact information must be updated online if it changes.
Background: The Ministry of Manpower recently informed employers of the upcoming change, saying the new requirements are being put in place to “enable pass holders to receive important updates during emergencies or on their pass-related matters.” The new requirement comes as Singapore is moving toward a “virtual” employment pass system, where newly issued passes will contain a code that will allow cardholders or employers to check check pass validity, expiration dates and other details on the web or through the SGWorkPass mobile app. The virtual program has already been launched for work permit holders and will be extended to Employment Passes, S Passes, Dependent’s Passes and Long Term Visit Passes in March.
BAL Analysis: Employers should be prepared to provide the relevant contact information, as described above, when they are completing the application process for pass holders.
What is the change? The Ministry of Manpower is poised to expand its virtual work permit program to all work permit holders other than domestic workers.
What does the change mean? Beginning Monday, newly issued work permit cards will not contain any variable information (e.g., date of expiry or occupation), but will instead contain a code that will allow cardholders or employers to check validity, expiration dates and other details on the web or through the SGWorkPass mobile app.
Background: MOM launched the SGWorkPass mobile app and piloted the virtual work permit program in September. Initially, the new cards were only issued to work permit holders in the Marine Shipyard and Construction sectors, but the program will now be expanded to all work permit holders other than domestic workers. Implementation for employment passes, S Passes, dependent’s passes and long-term visit passes is scheduled for March.
BAL Analysis: Plans to expand the issuance of virtual work permits are consistent with MOM’s efforts to digitize and streamline processes to enhance verification, reduce document fraud and provide flexible options for users.
What is the change? The Ministry of Manpower has extended the deadline by which companies must switch to Singapore Corporate Access, or CorpPass, when using Employment Pass Online. The new deadline is June 30.
What does the change mean? Companies may continue using SingPass for the first half of 2018 before they will be required to register a CorpPass account. MOM is urging companies to register with CorpPass as part of the authorities’ drive to protect both personal and business information.
Background: MOM launched the use of CorpPass for companies using Employment Pass Online last year. The ministry initially said that CorpPass would become mandatory for companies using Employment Pass Online in December 2017. The deadline has since been extended through the first two quarters of this year. No reason for the extension was provided.
BAL Analysis: Even with the extension, BAL recommends that companies create a CorpPass account as soon as possible if they have not already done so. While both CorpPass or SingPass may be used for the first two quarters of the year, SingPass will eventually only be available for use by individuals and will no longer be used for business transactions.
What is the change? Employers are reminded that the minimum salaries required for employment pass and S pass holders to sponsor family members in Singapore will increase by 20 percent over the current levels starting Jan. 1.
What does the change mean? Effective Jan. 1, employees will be required to earn a minimum fixed monthly salary of 6,000 Singapore dollars (about US$4,460) to sponsor a spouse or child on dependent’s passes and S$12,000 to sponsor parents on long-term visit passes.
Background: Under the criteria that expire Dec. 31, expatriate employees must earn a fixed monthly salary of S$5,000 to sponsor a spouse or children under 21 and S$10,000 to sponsor a parent.
BAL Analysis: Employers and individuals should factor in the changes when planning assignments. The increases may be prohibitive for some employees and could pose challenges for employers seeking to attract and retain foreign employees to Singapore. Companies may need to review and make necessary adjustments to current foreign employees’ salaries so that they may retain passes for their dependents.
Copyright © 2017 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
What is the change? Singapore has launched an online permanent residency applications process that allows applicants to submit their application and supporting documents electronically without needing to make an appointment with Immigration and Checkpoints Authority.
What does the change mean? The system, known as e-PR, went online this week and authorities are now accepting applications. Manual applications are no longer being accepted.
Business impact: Applicants will no longer need to submit documents in person at Immigration and Checkpoints Authority. While the new system will have a positive impact overall, BAL has seen anecdotal evidence of an uptick in rejections of re-entry permit applications for permanent residents who live outside of Singapore. It is not clear, however, whether this is related to the switch to the new application system or just a tightening measure to protect the local workforce, in line with recent Ministry of Manpower changes.
Background: Singaporean officials announced in November that they would switch to the new system in December in an effort to ease the application process. Applicants may now access the e-PR system online using their SingPass/2FA verification. A new government filing fee of 100 Singapore dollars (about US$75) will be applicable plus 20 Singapore dollars for the re-entry permit if the e-PR application is approved.
BAL Analysis: The recently launched e-PR system should improve the application process and eliminate the need to wait for an appointment and make a trip to the Immigration and Checkpoints Authority counter to submit an application. In-person appointments may still be required after review of the online application, but this will be determined and scheduled by the reviewing officer if needed. Permanent residents who live outside of Singapore may see an increased likelihood that re-entry permit applications will be denied and should contact BAL with any concerns.
What is the change? Australia has introduced a new six-year, multiple-entry visa for Singaporean business travelers and tourists.
What does the change mean? The arrangement will improve visa procedures for Singaporean nationals who frequently travel to Australia.
Background: Australia and Singapore first announced that long-term visas would be introduced in June, when Australian Prime Minister Malcolm Turnbull made an official visit to Singapore. Issuance of the new visas commenced last month. Visas will be valid for six years with a maximum stay of three months for each arrival. Additional information is available on this website.
BAL Analysis: The change will facilitate business and tourist travel and reduce the inconvenience of having to apply for a visa more frequently. Applicants should note, however, that work activities and stays of longer than three months are not permitted on the new visas.
This alert has been provided by BAL Australia. For additional information, please contact australia@bal.com.
MARN: 0101248
What is the change? The minimum salaries required for Employment Pass and S Pass holders to sponsor family members will increase by 20 percent over the current levels starting on Jan. 1.
What does the change mean? Employees must earn a minimum fixed monthly salary of 6,000 Singapore dollars (about US$4,450) to sponsor a spouse or child on Dependent’s Passes and S$12,000 to sponsor parents on Long-Term Visit Passes.
Background: Under current criteria, expatriate employees must earn a fixed monthly salary of S$5,000 to sponsor a spouse or children under 21 and S$10,000 to sponsor a parent.