Movement for change Make it more attractive for employers to employ locals
Singapore has a dysfunctional employment system. The workforce is 3.6 million of which 36% or 1.3 million are foreign workers. 

Many of the local workers have to work as taxi drivers and private car drivers or take up part time job because they are not able to get a full time job. Many employers prefer to employ foreign workers instead of local workers. 

What is the problem and how can this be overcome?

Here are the reasons why employers prefer foreign workers:

a) It cost them less to employ foreign workers. Although the govt requires the employer to pay a levy for foreign workers, I am told that the employer is able to get the foreign worker to reimburse them for the levy. Although this practice is illegal, it is difficult for the govt to enforce it. Furthermore, there is no levy for foreigners on E-pass.

b) Local workers are liable to be called up yearly for NS reservist duty, in the case of males, and are entitled to paid maternity leave for the first two children, in the case of females. The employer does not have to face these problems when they employ foreign workers. 

c) The foreign workers are recruited by employment agents who are able to take a commission of 3 to 6 months salary from the foreign workers. I am told that the employment agent gives a kickback of the commission to the person in charge of employing the foreign worker. 

The current practice is clearly to the detriment of the employment of local workers. 

I suggest the following measures to make it attractive for employers to employ local workers:

a) Reduce the NS reservist duty to 3 years after completing full time military training. The employer will not face the disruption caused by reservist duty after that.

b) The govt should take over the cost of paid maternity leave for women for the first two children. They now bear the cost for the third and subsequent children. This can be replaced, if necessary, by a small payroll tax.

c) Introduce a levy for the employment of foreign workers on E-pass.

d) Put a cap on the commission that the employment agent can collect from the foreign worker for their assistance in getting a job in Singapore. 

e) Take legal action against employers who collect reimbursement of levy from foreign workers.

These measures will make it more attractive for employers to employ local workers rather than foreign workers. 

Tan Kin Lian

Vote - do you agree with these measures to encourage employers to employ local workers?


 

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