Firms under Fair Consideration Framework Watchlist

32 Mr Chua Kheng Wee Louis asked the Minister for Manpower (a) what is the current number of firms under the Fair Consideration Framework watchlist; and (b) whether the Ministry will (i) disclose the names of firms that continue to be on the Fair Consideration Framework watchlist for more than six months and (ii) consider withdrawing these firms' access to Government grants and tax incentive schemes.

Mrs Josephine Teo: There are currently about 400 firms placed on the Fair Consideration Framework (FCF) Watchlist for having a higher share of foreign PMETs compared to their industry peers, or high concentration of a single foreign nationality source. Employment Pass (EP) applications from these firms are held back, while the Tripartite Alliance for Fair & Progressive Employment Practices (TAFEP) engages these firms to help them improve their human resource practices.

Firms on the FCF Watchlist have not flouted any rules but have been identified through proactive surveillance. Measures must therefore be proportional and also consider the impact on their existing local workforce. In most instances, employers on the FCF Watchlist have been responsive to TAFEP’s engagement efforts and expanded their employment of local PMETs. Naming these firms and withdrawing their access to Government grants and tax incentive schemes would likely have frustrated their local hiring efforts and is ultimately counter-productive. Instead, following TAFEP’s intervention, many firms exit the FCF Watchlist within a year. For the minority who are uncooperative, their work pass privileges remain suspended.

We plan to proactively engage even more companies under the FCF, such as those whose Singaporean core has been weakening, or whose EP and S Pass workforce are concentrated with a single foreign nationality source. We will work with economic agencies like EDB and MAS to engage these firms to improve their workforce profile. We will also engage the HR community to do more.