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Saturday February 4th 2012

Citizens A Minority In MNCs?

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Citizens A Minority In MNCs?

at Salary.sg – Your Salary in Singapore

A friend of mine works in an MNC. He commented recently that Singapore citizens are a rare breed at his workplace. In his extended team of about 30, there are Indians, British, Asian Americans and Malaysian Chinese, but only 2 Singaporeans. And one of the 2 is a contract worker!

This is not only limited to his extended team. Throughout the office, spanning several floors in the building, he said it’s hard to find more than a handful Singaporeans in middle to senior positions. However, in sales and lower-end operations, and especially in technical support, there are more citizens.

If people are interested to know whether MNCs are better paymasters than GLCs, it’s also logical for them to ask how many citizens are employed by MNCs in Singapore and in what positions. Unfortunately I can’t find any figures.

In Salary.sg forums, a forummer mentioned that there’s a quota limiting the ratio of foreigners vs citizens, but the quota “clubs” PRs and Singaporeans together. He is only partly correct.

Quotas are only applicable to work permits and ‘S’ pass foreign workers. See difference between foreign workers and foreign talent and MOM webpage on foreign worker quotas.

On the other hand, foreigners earning more than $2,500 hold employment passes. They are classified as “professionals” (as opposed to “skilled workers”). These foreign professionals are not subject to any quota.

This MOM reply to a query in ST says it all (boldface mine):

“Apart from the S-Pass, companies can also bring in foreign professionals, managers and executives on employment passes to meet their staffing needs. There is no quota for Employment Pass holders. However the applicant must be paid a basic monthly salary of at least $2,500 and have acceptable qualifications.”

There is no quota. If you run a company and pay more than $2,500 to each employee, you can have 100% foreigners in your company.

Still, the forummer is correct regarding the lumping of PRs and citizens. For skilled foreign workers, MOM enforces a certain quota. However, as stated in this MOM page (boldface mine):

” ‘Local workforce’ refers to those full-time employees (Singapore citizens or permanent residents).”

So, technically, any company in Singapore can hire zero Singapore citizen and have foreigners as all its employees.

Related posts:

  1. Why some PRs unwilling to become citizens
  2. “Foreign workers help create good jobs for S’poreans: PM” – Really?
  3. Tightening measures have little impact as Employment Pass applications surged 25.7 percent in 2011
  4. Dependent Pass Holder Fed up With Unscrupulous Employer
  5. Singaporeans can also be foreign talent
  6. Local PMET Unhappy With Errant Foreign Employer
  7. Singapore EntrePass vs Employment Pass
  8. Are our GLCs Employing Foreigners First?
  9. Benefits of Singapore Permanent Residence & Singapore Citizenship
  10. NS $9000 handout – is it enough?

Reader Feedback

4 Responses to “Citizens A Minority In MNCs?”

  1. Kevin Teo says:

    Without quota, this is way way ridiculous ! Has our govt become daft or is it doing with huge hidden agenda ?

  2. Kevin Teo says:

    Those who have voted PAP and now, are replaced by foreigners or are jobless should regret by now !

  3. admin says:

    Ya Kevin.

    Our govt policy is hurting the chances of local Singaporeans getting re-employed.

    Many friends have told me their companies have a majority of foreign workers.

    This not only lower our salary expectation but also make us feel that we are second-class citizens in our own country.

    How did we end up in such a piteous state?

  4. Roger says:

    And u know some companies hire low quality foreigners stated paying $2,500, but every month these unqualified foreigners would withdraw $1,000 or so cash and refund the employer. The employer gets tax free money laundering, and hire cheap workers, unqualified foreigners gets a ride here. MOM really screw themselves big time man, and in the process screw Singaporeans as well.

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