Work Pass Department expenses and Welfare Fund for Low Income Group and Jobless Singaporean shall come from Work Pass Levy Income. It is unfair to use tax payer money to help organization to employ foreign workforce. To increase levy payment are the only way to cover extra cost that burden our income tax department.
SINGAPORE: Singapore's Manpower Minister Gan Kim Yong has defended moves to raise the foreign worker levy to moderate the growth of such workers.
Mr Gan told Parliament that the levy changes are to ensure balanced economic growth and prevent over-reliance on foreign manpower.
The decision to raise foreign worker levies got much airing in Parliament this week. MPs were concerned with the impact on small businesses and sectors which already find it hard to hire locals.
One suggestion that fuelled the debate came from opposition MP Low Thia Khiang.
He said: “Scrap the foreign worker levy and just use the dependency ratio to calibrate foreign worker numbers.”
This was shot down.
Mr Gan explained: "If we only have a Dependency Ratio system with no levy, it would not make much of a difference to a company whether it hires one foreign worker or 10 foreign workers.
“In the end, most companies may well decide to hire as many foreign workers as they can up to the limit of their Dependency Ratios. This will be contrary to our objective to moderate demand and facilitate efficient allocation of foreign manpower resources."
Mr Gan said the government is not in the position to decide which industries should have more foreign workers.
He added: "For example, how do we determine whether the pharmaceutical industry requires more or fewer foreign workers than say, the Food Manufacturing industry? Even within the same industry, Food & Beverage, for example - how do we decide whether a coffee shop requires more or fewer foreign workers than, say, a French restaurant?
“Instead of the government making decisions on the number of foreign workers in each industry and business, we should leave it to market forces to do that through a pricing mechanism.”
On concerns that companies may not be able to find enough locals to take over the jobs of foreign workers, Mr Gan said the levy changes aim to motivate companies to increase productivity, with fewer workers.
Mr Gan said: "Let me borrow a phrase from my colleague Mr Lim Swee Say with - same same input and same same output, productivity will remain same same with no real improvements.
“Companies should consider how they can streamline business processes, improve their products and services, explore new higher value markets and upgrade the skills of their workforce. This way, they will see real productivity gains."
And because of the three-year phased period of increments, companies will have time to adjust.
"We need to get companies to start thinking about improving their productivity and take steps to reduce their dependency on foreign manpower now so that they have enough time to realise productivity gains. The longer we delay, the more painful the adjustments will be later," said Mr Gan.
The Manpower Minister acknowledged that the system is not perfect but stressed that it is practical and has worked relatively well so far.
He noted that companies will find it a challenge to adjust but for those who make the effort, they will be in a stronger position to seize opportunities and be more competitive in the long run. - CNA/vm
SINGAPORE: Singapore's Manpower Minister Gan Kim Yong has defended moves to raise the foreign worker levy to moderate the growth of such workers.
Mr Gan told Parliament that the levy changes are to ensure balanced economic growth and prevent over-reliance on foreign manpower.
The decision to raise foreign worker levies got much airing in Parliament this week. MPs were concerned with the impact on small businesses and sectors which already find it hard to hire locals.
One suggestion that fuelled the debate came from opposition MP Low Thia Khiang.
He said: “Scrap the foreign worker levy and just use the dependency ratio to calibrate foreign worker numbers.”
This was shot down.
Mr Gan explained: "If we only have a Dependency Ratio system with no levy, it would not make much of a difference to a company whether it hires one foreign worker or 10 foreign workers.
“In the end, most companies may well decide to hire as many foreign workers as they can up to the limit of their Dependency Ratios. This will be contrary to our objective to moderate demand and facilitate efficient allocation of foreign manpower resources."
Mr Gan said the government is not in the position to decide which industries should have more foreign workers.
He added: "For example, how do we determine whether the pharmaceutical industry requires more or fewer foreign workers than say, the Food Manufacturing industry? Even within the same industry, Food & Beverage, for example - how do we decide whether a coffee shop requires more or fewer foreign workers than, say, a French restaurant?
“Instead of the government making decisions on the number of foreign workers in each industry and business, we should leave it to market forces to do that through a pricing mechanism.”
On concerns that companies may not be able to find enough locals to take over the jobs of foreign workers, Mr Gan said the levy changes aim to motivate companies to increase productivity, with fewer workers.
Mr Gan said: "Let me borrow a phrase from my colleague Mr Lim Swee Say with - same same input and same same output, productivity will remain same same with no real improvements.
“Companies should consider how they can streamline business processes, improve their products and services, explore new higher value markets and upgrade the skills of their workforce. This way, they will see real productivity gains."
And because of the three-year phased period of increments, companies will have time to adjust.
"We need to get companies to start thinking about improving their productivity and take steps to reduce their dependency on foreign manpower now so that they have enough time to realise productivity gains. The longer we delay, the more painful the adjustments will be later," said Mr Gan.
The Manpower Minister acknowledged that the system is not perfect but stressed that it is practical and has worked relatively well so far.
He noted that companies will find it a challenge to adjust but for those who make the effort, they will be in a stronger position to seize opportunities and be more competitive in the long run. - CNA/vm
