[h=2]Cat out of the Foreigner-Created-Job bag[/h]
April 20th, 2014 |
Author: Contributions
It’s interesting that even before the ink on the Fair
Consideration Framework is dry, StanChart Research has come up with a report
noting that ‘new rules that kicked in on Jan 1 have already made it
significantly harder for firms to obtain employment passes for expats earning
$3k to $5k/month.’ (ST 17 Apr):
Banks, IT firms mull moves offshore amid manpower
shortage
http://www.stjobs.sg/career-resourc...oves-offshore-amid-manpower-shortage/a/161036
The manpower shortage is forcing banks and IT firms to consider moving their
middle and back-end functions offshore – a shift that could hit business parks
that house these operations.
The warning came from a Standard Chartered Research report that noted how new
rules that kicked in on Jan 1 have already made it significantly harder for
firms to obtain employment passes for expatriates earning $3,000 to $5,000 a
month.
Firms that want to hire young foreign graduates must pay them at least $3,300
a month under the new regulations, up from $3,000 previously. Older and more
experienced applicants must be paid even more.
As a result, “four to five” banks are considering relocating some functions
outside Singapore as they are struggling to fill back-office positions while
keeping a lid on costs, said StanChart, whose analysts spoke to human resource
experts, immigration service providers and business park leasing agents.
The implementation of the Fair Consideration Framework in August will likely
make it even harder for firms to hire expats, it added.
The thrust of the report is that the resulting ‘manpower shortage is forcing
banks (4 to 5) and IT firms to consider moving their middle and back-end
functions offshore – a shift that could hit business parks that house these
operations.’
StanChart believes that the situation can only get worse when the FCF starts
in Aug as under the framework, firms with more than 25 employees must prove they
tried to hire a Singaporean first, plus a compulsory ad in a govt job bank,
before they can recruit a foreign professional for any job paying less than
$12k/month.
Netizens across many platforms, not just at TRE, have already discussed many
ways to game the FCF that’s conceived with holes large enough for 2-bus to drive
abreast thro’. We just wish to predict one more – many foreign subsidiaries or
new independent ones will be formed with less than 25 headcounts to completely
circumvent the 25-employee rule.
Consider what Michael Smith of Randstad, the headhunter outfit that was
caught with ads specifically asking for foreign applicants, observed:
“Companies requiring niche skills or specialist skills in growth areas such
as research and development, banking, technology and accounting will be hit the
hardest, as they often rely on employment passes as a means to fill
specialist skill gaps in their workforce,”
Well, you read it yourself, in PAP’s own trusted media and right from the
mouth of a horse in the HR manger, even mid and back-end jobs at banks, tech
& accounting are considered as ‘specialist’,
relying on ‘foreign talents’ to fill.
Two damning observations here:
One, either our education system is failing to produce even
citizens qualified for just mid and back-end jobs or, in the insane rush to grow
GDP at all costs, we are creating jobs that do not benefit citizens but only
foreign firms, head hunters – and, yes, rent-seekers (aka land lords &
REITs, majority GLCs).
Two, it’s got to be a Freudian slip by good old Michael, an
old hand with the system here in Sgp.
What he basically reveals is calling PM
Lee’s bluff, ‘Foreign workers create jobs for Singaporeans.’
‘NO!!!’, says Michael, R&D, banking, tech and accounting employers
“often rely on employment
passes as a means to fill specialist skill gaps in
their workforce.”
Should we believe a PM who confessed a sad lack of 20/20 foresight or a
professional who eats and sleeps HR 24/7?
Anyway, let’s try to understand the purpose and timing of the StanChart
report and ST’s faithful reporting of it.
Is it too far-fetched to believe that foreign employers & HR outfits are
ganging up to fire the first warning shots at Tan Chuan Jin? So, in case,
newbie-Acting Minister Tan’s knees get wobbly, here’s our in-your-face 2cents
view:
We should not cry over spilt milk if this comes to pass. If the large banks
move out the mid and back office function, it is no great loss as these are cost
incurring functions, not revenue producing ones. Even if the banks’ own internal
transfer pricing recoups these costs, the Government would not earn much in
taxes anyway.
A Business Times report of 12 March 2014 reminded us that Singapore is the
transaction processing hub while the deals are mostly done elsewhere. Is there a
point of Singapore accepting the operation risks and employing so many so-called
FTs doing processing tasks while Hong Kong, Sydney and Tokyo take the glory and
the revenues of deal-making, the front office function that is the very epitome
of a real Financial Hub?
Well, let us call the banks’ bluff. If it is true – they can leave. If the
business cannot find locals to fill positions, then it is not worth having.
Therefore, good riddance to bad rubbish ….. or rather bad business and their
hordes of FTs. At least, our population gets reduced by a few thousands, every
bit helps. If they stay, then we know that they are … well bluffing, don’t
we?
Please pass the word around to friends and all. We have only ourselves to
look after each other, even if the FCF is ineffectual, foreign employers, CEOs
like Michael Smith and our own govt are not interested to create nor to employ
Singaporeans.
This StanChart report and ST’s reporting is another small piece of the puzzle
of the disappearing Singapore PMEs.
2cents & Chris K
* 2cents blogs at 2econdsight.wordpress.com while Chris K spends his
entire career in managing balance sheet currency, interest rates and liquidity
risks in a real world-class international financial hub.
Consideration Framework is dry, StanChart Research has come up with a report
noting that ‘new rules that kicked in on Jan 1 have already made it
significantly harder for firms to obtain employment passes for expats earning
$3k to $5k/month.’ (ST 17 Apr):
Banks, IT firms mull moves offshore amid manpower
shortage
http://www.stjobs.sg/career-resourc...oves-offshore-amid-manpower-shortage/a/161036
The manpower shortage is forcing banks and IT firms to consider moving their
middle and back-end functions offshore – a shift that could hit business parks
that house these operations.
The warning came from a Standard Chartered Research report that noted how new
rules that kicked in on Jan 1 have already made it significantly harder for
firms to obtain employment passes for expatriates earning $3,000 to $5,000 a
month.
Firms that want to hire young foreign graduates must pay them at least $3,300
a month under the new regulations, up from $3,000 previously. Older and more
experienced applicants must be paid even more.
As a result, “four to five” banks are considering relocating some functions
outside Singapore as they are struggling to fill back-office positions while
keeping a lid on costs, said StanChart, whose analysts spoke to human resource
experts, immigration service providers and business park leasing agents.
The implementation of the Fair Consideration Framework in August will likely
make it even harder for firms to hire expats, it added.
banks (4 to 5) and IT firms to consider moving their middle and back-end
functions offshore – a shift that could hit business parks that house these
operations.’
StanChart believes that the situation can only get worse when the FCF starts
in Aug as under the framework, firms with more than 25 employees must prove they
tried to hire a Singaporean first, plus a compulsory ad in a govt job bank,
before they can recruit a foreign professional for any job paying less than
$12k/month.
Netizens across many platforms, not just at TRE, have already discussed many
ways to game the FCF that’s conceived with holes large enough for 2-bus to drive
abreast thro’. We just wish to predict one more – many foreign subsidiaries or
new independent ones will be formed with less than 25 headcounts to completely
circumvent the 25-employee rule.
Consider what Michael Smith of Randstad, the headhunter outfit that was
caught with ads specifically asking for foreign applicants, observed:
“Companies requiring niche skills or specialist skills in growth areas such
as research and development, banking, technology and accounting will be hit the
hardest, as they often rely on employment passes as a means to fill
specialist skill gaps in their workforce,”
mouth of a horse in the HR manger, even mid and back-end jobs at banks, tech
& accounting are considered as ‘specialist’,
relying on ‘foreign talents’ to fill.
Two damning observations here:
One, either our education system is failing to produce even
citizens qualified for just mid and back-end jobs or, in the insane rush to grow
GDP at all costs, we are creating jobs that do not benefit citizens but only
foreign firms, head hunters – and, yes, rent-seekers (aka land lords &
REITs, majority GLCs).
Two, it’s got to be a Freudian slip by good old Michael, an
old hand with the system here in Sgp.
What he basically reveals is calling PM
Lee’s bluff, ‘Foreign workers create jobs for Singaporeans.’
‘NO!!!’, says Michael, R&D, banking, tech and accounting employers
“often rely on employment
passes as a means to fill specialist skill gaps in
their workforce.”
Should we believe a PM who confessed a sad lack of 20/20 foresight or a
professional who eats and sleeps HR 24/7?
Anyway, let’s try to understand the purpose and timing of the StanChart
report and ST’s faithful reporting of it.
Is it too far-fetched to believe that foreign employers & HR outfits are
ganging up to fire the first warning shots at Tan Chuan Jin? So, in case,
newbie-Acting Minister Tan’s knees get wobbly, here’s our in-your-face 2cents
view:
We should not cry over spilt milk if this comes to pass. If the large banks
move out the mid and back office function, it is no great loss as these are cost
incurring functions, not revenue producing ones. Even if the banks’ own internal
transfer pricing recoups these costs, the Government would not earn much in
taxes anyway.
A Business Times report of 12 March 2014 reminded us that Singapore is the
transaction processing hub while the deals are mostly done elsewhere. Is there a
point of Singapore accepting the operation risks and employing so many so-called
FTs doing processing tasks while Hong Kong, Sydney and Tokyo take the glory and
the revenues of deal-making, the front office function that is the very epitome
of a real Financial Hub?
Well, let us call the banks’ bluff. If it is true – they can leave. If the
business cannot find locals to fill positions, then it is not worth having.
Therefore, good riddance to bad rubbish ….. or rather bad business and their
hordes of FTs. At least, our population gets reduced by a few thousands, every
bit helps. If they stay, then we know that they are … well bluffing, don’t
we?
Please pass the word around to friends and all. We have only ourselves to
look after each other, even if the FCF is ineffectual, foreign employers, CEOs
like Michael Smith and our own govt are not interested to create nor to employ
Singaporeans.
This StanChart report and ST’s reporting is another small piece of the puzzle
of the disappearing Singapore PMEs.
2cents & Chris K
* 2cents blogs at 2econdsight.wordpress.com while Chris K spends his
entire career in managing balance sheet currency, interest rates and liquidity
risks in a real world-class international financial hub.
