SBF CEO reiterates to remove S-Pass levies for FTs

Singapore Business Federation (SBF) CEO Ho Meng Kit wrote to ST Forum on Wednesday (21 Jan) further explaining why it is asking the government to remove foreign worker levy for S-Pass holders and to hold off further increases in foreign worker levies.

SBF has earlier submitted a paper to the government on 7 Jan with regard to these issues, in response to the upcoming government Budget Day which has been scheduled on 23 Feb (‘SBF to Govt: Remove S-Pass levies for foreign PMETs‘).

S-Pass is meant for mid-level foreign PMETs who wish to work in Singapore. Foreign applicants are assessed on a points system, taking into account of the following criteria:

A minimum fixed monthly salary of $2,200 (older applicants would have to command higher salaries commensurating with the work experience)
Educational qualifications (degree, diploma, technical certificates can be considered)
Number of years of relevant work experience
Mr Ho said, “The SME Committee’s (SMEC) rationale for the recommendations to defer further planned increases in foreign worker levies and to remove the foreign worker levy for S-Pass holders is to help businesses manage the cost of hiring foreign workers.”

The overall cost of doing business has increased and wage cost is a contributing factor, he said.

In the recent SBF National Business Survey of about 1,000 members, 83% of the bosses said rising business cost was their main concern.

The foreign worker levy is one of three levers to control foreign worker access and protect local wages, the others being the dependency ratio ceiling (DRC) quota and the minimum qualifying salary, Mr Ho further explained.

“The SMEC’s view is that any further increase in foreign worker levies has to be managed to avert a situation where higher business costs outstrip any gains from productivity improvements,” he said.

“The current level of foreign worker levies, coupled with DRC, has been effective in controlling foreign worker access, while the implementation of the progressive wage model as well as other government schemes have enhanced wages and the career prospects of locals, especially low-wage workers.”

Mr Ho said that as of end-October last year, close to 270 companies have adopted the progressive wage model, benefiting more than 150,000 local workers.

“In the SMEC’s opinion, it is timely to review the use and quantum of foreign worker levies in controlling foreign worker access and protecting local wages. Any planned increases in foreign worker levies should also be deferred,” he added.

In the SMEC’s recommendations, it highlighted that an employer of S-Pass holders, having satisfied the DRC and minimum salary requirements, would have also met the objective of regulating the number of foreign workers while providing wage parity with local employees.

“Thus, the levy for S-Pass holders is unnecessary and leads to higher cost of doing business,” Mr Ho concluded.

“The SBF is working with the business community and the Government to promote a high-skill, high-wage economy. However, this cannot be a short-term goal but one that requires the collective and sustained efforts of the Government, businesses and employees.”

Foreign labour not a must-have for firms

Meanwhile, replying to SBF CEO Ho Meng Kit, a Mr Pan Fu Cheng also wrote to ST Forum today (23 Jan) arguing that foreign labour is not a must-have for firms.

He said, “In my travels, I have observed how other countries have been able to reduce their reliance on foreign workers and raise productivity.”

“When I visited Tokyo, I saw a 15-seat ramen stall run by just one man with a machine that took care of the orders and payments,” he observed.

“In New Zealand, waist-high traffic lights were used to direct traffic at a highway undergoing repair work, so the workers could focus on their tasks instead of having to wave ‘Stop’ and ‘Go’ signs.”

He added, “Companies that sign up for the Productivity and Innovation Credit grant must be willing to embrace technology to reduce their need for cheap foreign labour.”

In this respect, Mr Pan argued that firms that say they cannot survive without foreign workers should make way for those that can.

“After all, the people of Singapore have voiced their willingness to accept a slower pace of growth in order to have a more controlled influx of foreign labour,” Mr Pan concluded.

Impressive credentials of Mr Ho Meng Kit

SBF CEO Ho Meng Kit comes with an impressive list of credentials. Mr Ho is a scholar and was a very senior civil servant.

He held a variety of senior policy and executive positions including four years as the Principal Private Secretary to then Senior Minister Lee Kuan Yew.

He was once the Chief Executive of the Singapore Broadcasting Authority and Land Transport Authority. As Managing Director of the Economic Development Board, he has extensive exposure to corporations.

As Deputy Secretary in MTI and later in MFA where he was also Singapore’s Senior Official for Asia-Pacific Economic Cooperation (APEC), Mr Ho has, therefore, an excellent understanding of government policies particularly those relating to support for businesses.

Mr Ho was the Deputy Secretary of MFA when he opted for early retirement from the Civil Service to join the SBF in 2011.

He graduated in 1978 from Cambridge University with a degree in Engineering. He completed the Advanced Management Programme at Harvard University in 2003.

Coming back to the need for FTs, do you agree with the impressive Mr Ho Meng Kit or Mr Pan?

What do you think? This zillionaire is thinking of ZERO levies on S pass

[jwhtan]

foreigners vs locals is a very delicate balance ...... both also got its pros and cons .... u hv ur that filipino ttsh nurse and that indian vp whiner on SIA ..... on the other hand any business owner and even HR hirer will tell u how choosy singaporean workers are .....

too many foreigners will result in resentment by locals and create a me vs them siege mentality .....not having foreigners and having no external threats to our jobs, on the other hand, will make us complacent and slowly develop a lack of hunger to do well economically .....

[Ong88]

What can Singapore do well that is more attractive economically and other countries can't?


With or without FT the stagnation, or even decline, imho is inevitable. Gone are the days when we can be middle men for the indons or juhu kias.

To me only banking/financial sectors we can exploit because the rich want safe reliable places to park their funds.

All other aspects other countries win.

FTs are needed in service roles cos locals shun those jobs.

PMETs : that's another story.
We lose more if local PMETs are sidelined.
Also consider that the FTs' repatriation of their salaries out of SG can be quite substantial.

Think we are all doomed

[jwhtan]

Originally Posted by Ong88

Think we are all doomed

last one out, please off the lights

But no control also cannot , too many already , many until many have to lan lan work without getting any pay rise , me and my colleagues coming close to 4 yrs without pay rise until only recently Why ? Because my boss very the big fcuk , always said u Singapore lang hiam this n that don't want work also never mind , I got plenty Malaysian , pinoy to hire , until now these levy and quota keeps rising , he than lan lan , now less talking kok to us .
If zero levies for ft , ha I think 10 years also earn the same pay .

[hkh]

If no levy........think you and me will soon be jobless..........

[jwhtan]

Originally Posted by hkh

If no levy........think you and me will soon be jobless..........

LOL ...... errr .... no

If no levy, they wun allow so many foreigners to come in ..... why would they ?
No money to make u want to do meh ?

[Ong88]

Originally Posted by jwhtan

last one out, please off the lights

Yup.

Terrible.

Originally Posted by hkh

If no levy........think you and me will soon be jobless..........

Very Correct will lose job anytime , 3 years ago when I come out from ttsh ( foot got swollen ) , I go visit my friend who own a Hp shop at bishan tcss , he said to me , u work for ppl very un predictive anything can happen , sekali tio Pok die . He tell me to go take the taxi license as a standby . 2 years ago I go pass the taxi license . If tio Pok , then I lan lan go drive taxi loh .

Originally Posted by jwhtan

LOL ...... errr .... no

If no levy, they wun allow so many foreigners to come in ..... why would they ?
No money to make u want to do meh ?

They would also , to help spice up the city