The Singaporean government has taken steps to tighten the criteria under which companies are allowed to hire foreign nationals.
The move is seemingly due to the high level of unemployment in one of Asia’s biggest financial hubs, following the covid-19 crisis and subsequent lockdown.
The minimum salary requirement needed to be eligible for the Lion City’s Employment Pass, the work permit for expats, was raised by 15% a month, according to British newspaper Financial Times.
Under the newly introduced rules, foreigners would need to get a monthly salary of at least S$4,500 (£2,494, $3,294, €2,786) to qualify.
The sum grows to S$5,000 for finance professionals, and S$10,000 for those aged 40+.
The regulations are going to make it much harder for businesses based in the city state that are looking to hire foreign talent.
And even if candidates do meet the updated criteria, there might be no guarantee of receiving a work permit.
Local-foreign balance
The move follows the introduction of national security legislation in Hong Kong, which prompted many finance professionals to look at Singapore as an alternative base.
Singapore has been one of the top choices for expats, considering its low taxes and high living standards, but the tightening of employment rules is the government’s second attempt at shifting focus on local talent when it comes to hiring practices.
This is because of the rising number of people losing their jobs the Lion City, as a result of the coronavirus outbreak.
It recorded a 3.3% unemployment rate in Q1 2020, which then grew to 4% in Q2, the highest level in more than a decade.
Additionally, Singapore fell into a recession, after its economy shrunk by 12.6% year-on-year – the largest drop since 1965.
