From September, foreigners working in Singapore will have to earn
more before they can apply to bring their families here.
Those who want to bring their spouses and children here will have
to earn at least $5,000 a month, up from $4,000. The minimum
monthly salary for those who want their parents to join them here
will be $10,000 , up from $8,000.
The salary bars have risen by 25 per cent. The Ministry of Manpower
(MOM) has downplayed the move as a periodic update of its visa
sponsorship criteria, but the timing and extent of changes are
anything but routine. The move comes on the back of a string of
recent measures to control the inflow and raise the quality of the
foreign workforce.
Just two weeks ago, Manpower Minister Lim Swee Say announced that
firms looking to hire foreign professionals, managers and
executives (PMEs) will come under tougher hiring rules, including having their hiring
practices scrutinised if they are deemed not to be committed enough
to hiring Singaporeans.
Also, while the higher salary bars are ostensibly to make sure
foreigners can finance the upkeep of their families, they also send
a signal about the kinds of foreigners that Singapore wants to
attract to sink roots here. A statement on MOM's website gives a
hint of its thinking: "We assess the level of dependant
privileges... based on his economic contribution and whether he can
finance his dependants' stay in Singapore." The ministry added that
the privilege applies to "higher skilled foreign professionals".
Not just skilled, but highly skilled ones - the signal cannot be
any clearer.
Some foreigners who will soon be unable to bring their families
here might decide not to come at all. This will open the window for
Singaporeans to fill their shoes - removing some of the sting from
foreigners perceived to be taking away PME jobs.
Since hiring cycles take months or even a year to
stabilise, it may be some time before the impact of the latest move
is felt. While some may argue it could have come sooner, it is
nonetheless a step in the right direction to give Singaporeans a
leg up.
Foreigners who already have their families here and those who have
applied to bring them here do not have to worry about the higher
minimum salary bars announced last week.
This is because the new rules will not apply to them, said the
Ministry of Manpower (MOM) yesterday in a statement. But there is a
catch when the Dependant Passes (DPs) for spouses and children, or
when the Long Term Visit Passes (LTVP) for parents, are up for
renewal: the foreigner cannot switch employers.
"We treat any change in employer as a new
application," the MOM said.
While the concessions may bring some relief to foreigners who
already have families here, it does not bring cheer to those who
are thinking of bringing their families to Singapore.
A 29-year-old assistant customer service manager from the
Philippines, who earns about $3,000 a month, said: "It makes me
feel that only certain types of foreigners are more welcome here...
I have a wife and a two-year-old son that I left behind. My current
salary does not qualify me to bring them here and the new salary
requirement will make it even harder."
The move to raise the minimum monthly salary bars for foreigners
seeking to bring their families to Singapore will not affect how
employers hire or pay foreigners.
Employers say that although there is demand for good foreign
talent, they will not raise the salaries of foreigners just so they
can bring their families here.
"Employers generally do not top up or raise salaries just to match
a higher salary criteria," said interior furnishings firm Goodrich
Global's chief executive, Mr Chan Chong Beng. "They will look at
the candidate and the market rate before determining the pay."
Singapore International Chamber of Commerce chief executive Victor
Mills agreed that the move is unlikely to cause a major upheaval
for companies.
As it is, many foreign executives no longer base their families in
Singapore, mainly because of the high cost of living.
The Manpower Ministry (MOM) announced on its website last week that
foreigners here have to meet higher minimum salary bars before they
can apply for visas for spouses, children and parents.
From Sept 1, they will have to earn at least $5,000 a month if they
want to apply for Dependant's Passes (DPs) for their spouses and
children to join them in Singapore. This is up from the current
$4,000.
Those who want to bring their parents to Singapore on Long Term
Visit Passes (LTVPs) are subject to a minimum salary bar of $10,000
a month, up from $8,000.
There are about 179,000 people on Employment Passes (EPs) and
170,000 on S Passes.
The MOM declined to say how many of them are currently sponsoring
their families here on DPs and LTVPs.
The last time such data was disclosed was in 2012. Then Manpower
Minister Tharman Shanmugaratnam said in a reply to a Parliamentary
question that the Government issued an average of 35,000 DPs and
LTVPs each year to foreigners on EP between 2005 and 2010.
Human resource experts said that foreigners
earning between $4,000 and $5,000 a month who do not meet the
higher minimum salary to bring their families here are mostly
middle managers.
"They have lower bargaining power than senior executives whom
companies, especially multinationals, will go all out to attract to
Singapore," said human resource consultant Martin Gabriel from
HRMatters21.
"Now that they cannot bring their families here, they may bargain
in other areas, like longer annual leave so that they can go back
to see their families," he added.
The higher requirements are not likely to pose a problem for
employers, recruiters said.
Even if some foreign job applicants are discouraged from coming to
Singapore, the demand for workers is still less than the supply of
candidates, said AYP Associates managing director Annie Yap.
Mr James Kow, head of business at PeopleSearch, said: "If companies
genuinely can't get any Singaporeans and they need to find foreign
talent to fill the gap, this is not going to make a
difference."
The Ministry of Manpower (MOM) is raising the minimum salary bar
before they can apply for visas for spouses, children and parents.
From Sept 1, they will have to earn at least $5,000 a month if they
want to apply for Dependant's Passes (DPs) for their spouses and
children to join them in Singapore. This is up from the current
$4,000.
Those who want to bring their parents to Singapore on Long Term
Visit Passes (LTVPs) face an even higher minimum salary bar of
$10,000 a month, up from $8,000.
The changes, which were updated on the MOM's website in the last
week, come after the ministry said employers looking to hire
foreign professionals will face tougher rules from Oct 1.
"The Government updates the DP/LTVP qualifying salary from time to
time, to ensure that sponsors will be able to upkeep their
dependants," an MOM spokesman said yesterday. "We continue to
welcome highly skilled foreign professionals who wish to bring
their dependants to stay with them."
The move will affect foreigners on S Passes and Employment Passes
(EPs). According to the MOM's website, there were 178,900 people on
EPs and 170,100 on S Passes as of December last year.
The minimum salaries for foreigners bringing in their families were
last adjusted in 2012. Before that, S Pass holders who earned more
than $2,800 and EP holders could bring in their spouses and
children.
Ms Cai Bi Xia, general secretary of the Huayuan Association which
helps Chinese nationals settle into Singapore, said the move
signals that the Government wants to attract foreigners of a
certain calibre. It will put pressure on firms to raise salaries to
attract this group, which is also sought after by other countries.
"Companies need to recognise the higher salary requirement and
raise pay accordingly to attract the talent they want," she
said.
Mr David Leong, managing director of recruitment firm
PeopleWorldwide Consulting, noted that raising the minimum salary
will ensure that foreigners can support their families here.
But he warned that the move may make Singapore less attractive to
foreigners in the long run.
"When senior managers relocate to another country, they would want
to bring their family," said Mr Leong. "(The change) will make
people who are moving to Singapore think twice about doing so.
"It discourages them from bringing their families and sends a
signal to come alone, which may make other countries more
attractive."
Singapore Management University law don Eugene Tan said: "It is a
necessary rationalisation as hiring one foreign professional can
open the door to, say, four others in his or her family, which can
impose a cost on society. By reviewing the benchmark, the door
remains open but there is a more judicious management of the
inflow."
Accountant Benjamin Ang, 32, said: "I hope that this means there
are more chances for promotion. With the changes, foreign
professionals might be discouraged from coming here to work.
"This could be an opportunity for locals to work harder and
excel."
STjobs
