Safeguards to Prevent Misuse of Training Work Permit Which Imposes Lower Levy

22 Ms Gho Sze Kee asked the Minister for Manpower (a) whether the Ministry has assessed the risk that the lower levy for Training Work Permit holders may incentivise employers to deploy such permit holders in roles not genuinely intended for training purposes; and (b) what safeguards are in place to prevent abuse of the scheme.

Dr Tan See Leng: The Training Work Permit (TWP) is a short-term pass, which allows foreign trainees and students to undertake short-term practical training in Singapore.

The following safeguards and restrictions are in place. First, foreign trainees must be from related companies overseas, while foreign students must be undergoing the training as part of their course requirements. Second, the TWP is only valid for up to six months. It is non-renewable for foreign students, while foreign trainees cannot obtain another TWP until the last TWP has expired or is cancelled for six months. Finally, TWP holders are subject to Dependency Ratio Ceilings, similar to Work Permit holders, as well as the levy rates for higher-skilled Work Permit holders.

The number of TWP holders has remained low at around 0.2% of Work Permit holders. Employers who are found to have abused the scheme by deploying TWP holders in roles not genuinely intended for training purposes may be liable for a financial penalty of up to $10,000 per worker and may also be debarred from employing foreign workers.