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Authorities in Singapore announced Wednesday that beginning in May Dependant’s Pass holders will have to obtain a work pass rather than a letter of consent (LOC) in order to work in Singapore.
Key Points:
Analysis & Comments: Officials are implementing the change to make the work authorization process for Dependant’s Pass holders consistent with the work pass framework for other foreign workers. Additional announcements on the change are expected in the coming weeks, and Deloitte will provide more information as it becomes available.
Rest of World 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 includes Deloitte Tax LLP in the United States which does not provide legal and/or immigration advice or 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. © 2021. For information, contact Deloitte Touche Tohmatsu Limited.
IMPACT – MEDIUM
What is the change? In the 2021 Singapore budget presented on Feb. 16, the government announced that it intends to reduce the hiring quota of foreign workers that qualify for an S Pass in the manufacturing sector in a two-step process in 2022 and 2023.
What does the change mean? Under the current policy, the number of S Pass holders that a company in the manufacturing sector may hire is restricted to 20% of the company’s total workforce. As from Jan. 1, 2022, this cap would be reduced to 18%, with a further reduction to 15% as from Jan. 1, 2023.
Background: The allowable percentage of foreign workers to Singaporean workers is referred to as the Dependency Ratio Ceiling (DRC), and S Passes are a subcategory of the overall DRC. The government’s aspiration is to balance the local and foreign manpower in various industry sectors by upskilling the local workforce and moderating the reliance on foreign labor. One of the consequences of the effects of the COVID-19 pandemic on Singapore’s economy is that the inflow of foreign workers needs to be carefully regulated to ensure that fair job opportunities continue to be created for Singaporeans.
Analysis & Comments: Following the announcement in the 2020 budget that the DRC in the manufacturing industry would be reviewed, this year’s announcement did not come as a surprise. Manufacturing continues to be a significant industry in Singapore and to sustain Singapore’s position as a global advanced manufacturing hub, companies must prioritize building a skilled local core of employees within their firms to reduce reliance on foreign workers. The S Pass category will be reviewed periodically and businesses should prepare for the possibility of it being abolished in the future.
Rest of World 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 includes Deloitte Tax LLP in the United States which does not provide legal and/or immigration advice or 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. © 2020. For information, contact Deloitte Touche Tohmatsu Limited.
Singapore has announced new travel and immigration changes related to COVID-19.
Analysis & Comments: The response to COVID-19 continues to develop, and Deloitte will provide additional updates as information becomes available. Please check Deloitte’s COVID-19 Digital Map, available here, for information on travel restrictions and immigration changes in other countries.
IMPACT – HIGH
Singapore suspended reciprocal green lane (RGL) arrangements with Germany, Malaysia and South Korea for three months beginning Feb. 1.
Analysis & Comments: The response to the COVID-19 pandemic continues to develop, and Deloitte will provide additional updates as information becomes available. Please check Deloitte’s COVID-19 Digital Map, available here, for information on travel restrictions and immigration changes in other countries.
The Singaporean government recently announced changes to entry and travel measures. Key Points:
Additional Information: Those who are traveling to Singapore or considering it can find updates about travel and border measures on the SafeTravel website.
Analysis & Comments: The new entry and travel measures will add to the time it takes for affected travelers to enter Singapore. The response to the COVID-19 pandemic continues to develop, and Deloitte will provide additional updates as information becomes available. Please check Deloitte’s COVID-19 Digital Map, available here, for information on travel restrictions and immigration changes in other countries.
Singapore’s government has announced a new initiative, Connect@Singapore, which will create a new, segregated travel lane for business travelers from all countries.
Additional Information: More information about Connect@Singapore is available here. Analysis & Comments: The new, segregated travel lane will soon allow a limited number of travelers to enter Singapore for business purposes. Please check Deloitte’s COVID-19 Digital Map, available here, for information on travel restrictions and immigration changes in other countries.
The Hong Kong-Singapore air travel bubble will be deferred until 2021 because of recent COVID-19 developments in Hong Kong. Key Points:
Background: Hong Kong and Singapore initially planned on launching the air travel bubble last month, but subsequently announced they would postpone implementation for at least two weeks. Implementation has now been pushed back again. Analysis & Comments: The response to COVID-19 continues to develop, and Deloitte will provide additional updates as information becomes available. Please check Deloitte’s COVID-19 Digital Map, available here, for information on travel restrictions and immigration changes in other countries.
The Singaporean government has added new features to the national job portal, MyCareersFuture, aiming to ensure that local workers are not discriminated against in the hiring process. The new features are:
Analysis & Comments: The new features are another sign of how serious Singapore is about rooting out discrimination against local workers in the hiring process. The Ministry of Manpower recently reported that it has suspended work pass privileges for 90 employers since January, citing violations of the Fair Consideration Framework. Half of these suspensions were because of discriminatory job advertisements. Employers are encouraged to take note of this trend and ensure they are adopting the appropriate fair hiring practices.
Singapore and Hong Kong have postponed the implementation of an “air travel bubble” that will allow for quarantine-free travel between the two locations.
Analysis & Comments: Travelers who wish to travel between Singapore and Hong Kong should take note of the delayed implementation and adjust their plans accordingly. Deloitte will provide updates on the travel bubble’s implementation as information becomes available. Please check Deloitte’s COVID-19 Digital Map, available here, for information on travel restrictions and immigration changes in Singapore, Hong Kong and other countries and locations.
Singapore is poised to launch a new work pass program aimed at drawing leading tech investors, experts and entrepreneurs to the country.
Background: Tech.Pass is an expansion of the Tech@SG pilot program that officials launched last year. Additional information on the new program is available here.
Analysis & Comments: Tech.Pass is part of Singapore’s ongoing efforts to solidify itself as a leader in the global tech economy. While the program will be of interest to tech investors, experts and entrepreneurs, it may be of limited value to established companies. These companies will likely find traditional work pass options more suitable for most of their workforce. Additional information about the application process is expected in the coming weeks, and Deloitte will provide additional updates as information becomes available.