DISCLAIMER: What follows is strictly a rumor. There's absolutely
no confirmation and no one but the government can confirm it (and
if you are the government, please don't sue me). I am only
reporting what has reached my ears. This is something I have been
hearing for 3 days in a row, from different people in different
sectors. It is not my intention to spread FUD (fear, uncertainty
and doubt).
From January 10, 2009 the government is planning to
automatically convert all P1 and P2 employment pass holders to
PRs.
This rumor is already doing the rounds in offices and other
establishments.
My analysis: There are some 99,000 employment pass holders
currently in Singapore. It would be a brilliant move on the
government's part to convert their current status to that of a
permanent resident.
Imagine how much money would accrue to the CPF in the
process - likely in the range of $1 billion a year.
It would also enlarge the pool of potential home buyers by
99,000, driving up the demand for HDB flats and condos and reining
in the price crash that has been predicted.
It would help retain many talented people within the country as PR
status enables them to stay in town and hunt for other
opportunities in case they get the pink slip.
It would also pave the way for a fresh wave of foreign talent, this
time not from the US or the UK but from China, India and other
neighbouring countries, who are only too keen to become Singapore
PRs.
Another likely possibility: a small percentage of these PRs may
start their own business, thus expanding the economy.
