Availability of Accommodation and Employers' Commitment to Productivity Targets Before Approval of Work Passes for Foreign Workers
Ministry of ManpowerSpeakers
Summary
This question concerns MP Yip Hon Weng’s inquiry regarding the coordination of foreign worker accommodation with work pass approvals and the linking of approvals to employer productivity. Minister for Manpower Dr Tan See Leng replied that employers must ensure valid accommodation before permits are issued, noting that 17,000 dormitory beds have been added since December 2022. He stated that assessing individual firm productivity targets is impractical, so the Ministry of Manpower utilizes Industry Transformation Maps and enterprise grants to promote technology adoption. The government also calibrates Dependency Ratio Ceilings (DRCs) to limit foreign worker numbers, supporting a broad shift toward higher productivity across various sectors. Minister for Manpower Dr Tan See Leng highlighted that upcoming DRC reductions in the Construction and Process sectors starting January 2024 will further incentivize reduced workforce reliance.
Transcript
72 Mr Yip Hon Weng asked the Minister for Manpower (a) whether the Ministry makes available more accommodation ahead of time before approving more work passes for foreign workers; (b) whether the Ministry will work with employers who have committed to productivity measures in automation and technology and help them meet their targets before approving work passes for their foreign workers; and (c) how effective are the existing schemes to reduce reliance on foreign workers in the past three years.
Dr Tan See Leng: Employers of Work Permit Holders (WPHs) are required to ensure that their WPHs have acceptable accommodation in Singapore, which may include dormitories, hostels and public or private residential housing. The Ministry of Manpower (MOM) issues a Work Permit only after the employer registers a valid address with MOM. MOM has been working with relevant Ministries to expand the dormitory bed supply and 17,000 dormitory beds have been added since December 2022.
Businesses know that to thrive in the long run, they need to transform, increase their productivity and reduce their reliance on WPHs. To this end, sector agencies have launched 23 Industry Transformation Maps (ITMs) to uplift productivity across the economy. Businesses can tap on various enterprise grants offered by sector agencies to adopt automation and technology and transform their businesses.
It is not practical for MOM to require each firm to commit to productivity measures and ascertain if targets have been met before approving work pass applications. Instead, MOM, in consultation with sector agencies, calibrates our foreign workforce policies, including the Dependency Ratio Ceilings (DRCs) which limit the number of WPHs that employers can hire, to support the push towards higher productivity. For example, the upcoming reduction of DRCs for the Construction and Process sectors from 1 January 20241 goes hand in hand with sector agencies’ plans to incentivise businesses to adopt more productive technologies.