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IMPACT – HIGH
What is the change? Companies are reminded that the Ministry of Manpower has set a deadline for all companies to switch to Singapore Corporate Access (CorpPass) when using Employment Pass Online or conducting other business transactions with the government. CorpPass will replace the current SingPass login by December 2017.
What does the change mean? While use of SingPass can continue for now, MOM has urged companies to register a CorpPass account as soon as possible. This is part of the authorities’ drive to protect both personal and business information.
Background: MOM recently launched the use of CorpPass for companies using EP Online and said in May that CorpPass would become mandatory for companies using EP Online. CorpPass will replace SingPass for business transactions with the government. For now, either CorpPass or SingPass may be used, but by December, SingPass will only be available for use by individuals and can no longer be used for business transactions.
BAL Analysis: Companies should take note of the change and create a CorpPass account if they have not already done so.
This alert has been provided by the BAL Global Practice group in Singapore. For additional information, please contact singapore@bal.com.
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.
IMPACT – MEDIUM
What is the change? Singapore will soon raise the salary thresholds that companies must meet in order to count local employees as full- or part-time employees when calculating their foreign worker quotas.
What does the change mean? Effective July 1, locals must earn at least 1,100 Singaporean dollars (about US$795) per month to be considered as full-time employees for quota purposes. Local employees must earn between at least SG$550 (and less than SG$1,100) to be considered part-time employees. Effective July 1, 2018, locals must earn at least SG$1,200 per month to be considered full-time employees. Local employees must earn between at least SG$600 (and less than SG$1,200) to be considered part-time employees.
Background: Singapore promotes the localization of its workforce by imposing quotas on how many foreign employees companies can hire based on the number of local workers (i.e., Singaporean citizens or permanent residents) they employ. For quota purposes, full-time workers count as one local employee and part-time workers count as one-half of a local employee. The salary thresholds outlined above were included in Singapore’s 2017 budget.
BAL Analysis: BAL is available to assist clients in calculating their foreign worker quotas or to answer questions about how much local workers must be paid under the salary thresholds. Additional information is also available on this Ministry of Manpower website.
What is the change? The Ministry of Manpower has said that Singapore Corporate Access (CorpPass) will become mandatory by December for all companies using Employment Pass Online or conducting other business transactions with the government.
Background: MOM recently launched the use of CorpPass for companies using EP Online, but until now have not said when CorpPass would become mandatory for companies using EP Online. In a message on Tuesday, MOM said CorpPass would become mandatory by December, when it will replace the SingPass login for business transactions with the government. For now, either CorpPass or SingPass may be used, but eventually SingPass will only be available for use by individuals and will no longer be used for business transactions.
What is the change? The visa service center that handles Indian visas for applicants in Singapore has announced that it will begin collecting biometrics from all applicants.
What does the change mean? Effective immediately, visa applicants will have to appear in person when submitting visa applications and should be prepared to have their biometrics taken.
Background: BLS International Services handles visa processing for the High Commission of India, Singapore and recently announced on its website that it would begin collecting biometrics from all applicants. The center does not handle e-visa services, however, which are handled directly by the Indian government through the government’s official e-visa website.
BAL Analysis: The new biometrics adds an additional step to the process of applying for an Indian visa for the first time in Singapore. Those affected should be sure to leave enough time in their schedules to appear in person and provide biometrics. Once biometrics have been collected, subsequent applications will not require individuals to be present.
The Ministry of Manpower has charged four foreign nationals with submitting fraudulent academic records in support of work pass applications. Three of the four pleaded guilty and were sentenced to 10 weeks of imprisonment. The charges against the fourth are not yet resolved.
Key Points:
BAL Analysis: The cases highlight how serious the ministry is not just about cracking down on employers who violate immigration laws, but also foreign nationals who abuse the process. According to MOM, 73 foreign nationals have been convicted on immigration-related charges in the last two years and permanently barred from working in Singapore. Employers or employment agencies found to have abetted foreign nationals in providing fraudulent documentation also “will be severely dealt with,” MOM said.
What is the change? The Ministry of Manpower has launched the use of Singapore Corporate Access (CorpPass) for companies using Employment Pass Online.
What does the change mean? Companies using Employment Pass Online for Employment Pass, S Pass and other transactions, should create a CorpPass account. While SingPass can continue to be used for now, there are plans to make the use of CorpPass mandatory for all company-related transactions. No specific timeline has been issued on when this will take effect, but BAL recommends that businesses register for a CorpPass account as soon as possible.
Background: CorpPass is described as “a one-stop authentication and authorisation service, for corporate users to transact with (Singaporean government) agencies online on behalf of their organisations.” It was introduced in the third quarter of 2016 and has since been expanded. MOM is now launching the use of CorpPass for immigration-related services, including Employment Pass Online. Eventually, SingPass will be available for use by individuals, not companies or company representatives.
What is the change? The Ministry of Manpower has charged the former director of an engineering firm with 20 counts of submitting false information in work pass applications in a case that highlights how serious authorities are about enforcing the provisions of the Employment of Foreign Manpower Act.
Background: The case highlights how serious the Ministry of Manpower is about enforcing laws on foreign workers in Singapore. The ministry filed similar charges against the managing director of another Singaporean company in October, and said it regularly “conducts proactive checks to detect and enforce against false applications.”
BAL Analysis: The ministry has indicated that it is aggressively investigating for false statements or kickbacks by those employing foreign workers. Anyone with information about employers who operate in violation of the Employment of Foreign Manpower Act are urged to contact the agency by telephone at (65) 6438 5122 or email at mom_fmmd@mom.gov.sg.
What is the change? The Ministry of Manpower (MOM) has posted new standard processing times for Work Passes, Dependant’s Passes and Long Term Visit Passes.
What does the change mean? The posted processing time for online submissions of Work Passes, Dependant’s Passes and Long Term Visit Passes is now three weeks, up from the previous standard of one week.
Background: The new processing times were posted within the last week. MOM said processing times had not been updated since between 2005 and 2010.
“Our employment and security landscape has since evolved and MOM has put in place more measures to check and verify work pass applications,” MOM said in a statement. “These measures, such as verifying documents, qualifications and data with other government agencies and even overseas organisations take more time.” MOM added that it has “stepped up to check if the hiring firms are adopting fair employment practices.”
Additional information on the application process for passes and permits is available on MOM’s FAQ site.
BAL Analysis: Employers should take note of the new processing times and plan their schedules accordingly. While the posted processing times reflect how long it takes for standard applications to be processed, delays are possible if MOM requests additional information or if there are other unexpected complications.
Singaporean officials continue to stress the need to develop Singapore’s local workforce as a recently released report indicates that unemployment rose slightly last year with net growth in local employment still slow compared to levels seen in years past.
Background: Singapore 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. Manpower Minister Lim Swee Say was quoted in the Straits Times as telling business leaders at a recent event that MOM would remain flexible as companies adjust to the goals Singapore has set for the economy.
“There’s no disagreement that we need to break the manpower bottleneck. Based on your feedback, I think we are on the right track,” Lim said, according to the report. “In the process, if you need to have some short-term flexibility on our foreign worker policy, we are prepared to consider – on the condition there is a clear action plan to upgrade to transform.”
As BAL has reported recently, Singapore has stepped up its focus on protecting local workers. The government announced in February that it will integrate the Jobs Bank portal with the SkillsFuture platform, allowing Singaporean workers to search for training opportunities and job vacancies at the same time. Authorities have also expanded the number of companies on MOM’s watch list from 100 companies last year to 250 this year.
BAL Analysis: All indications are that authorities in Singapore will continue to focus on promoting the local workforce, which may lead to greater scrutiny of foreign workers and employment pass applications. This seems particularly likely given the slow expansion in the local workforce. That said, Lim’s comments that the government will be flexible with companies in need of foreign workers as they adapt were encouraging. Companies with questions about how best to recruit the foreign workers they need should work with BAL to discuss the best options available to them.
What is the change? Amid predictions for weaker job growth in the coming three to five years, the government has announced that it will integrate the Jobs Bank portal with the SkillsFuture platform, allowing Singaporean workers to search for training opportunities and job vacancies at the same time.
What does the change mean? The lower job growth predictions indicate that unemployment remains a concern for the Ministry of Manpower and it is focusing on helping the local workforce match work skills with job vacancies.
Background: Last week, Minister of Manpower Lim Sway See indicated that job growth will plateau at about 25,000 to 40,000 jobs per year in the next three to five years, down from previous years with annual job growth of 100,000 to 120,000 jobs.
The job growth numbers follow a recent jobs report indicating that nearly half of all job vacancies were for professionals, managers, executives and technicians (PMETs) and most job openings were in education, healthcare, information and communications, and service-related occupations.
Lim said the agency will focus on assisting professionals advance beyond entry-level jobs, giving small and medium enterprises better access to PMETs, and making the workforce more inclusive for all workers.
BAL Analysis: In light of the predictions for slower job growth, authorities in Singapore will continue to focus on promoting the local workforce, which may lead to greater scrutiny of foreign workers and employment pass applications.