Headcount Retention and Technology Transfer for Citizen Workforce of Singapore-based AI Company Recently Acquired by Meta

19 Mr Low Wu Yang Andre asked the Minister for Manpower regarding the recent acquisition of Singapore-based AI start-up Manus (a) what percentage of the company's core workforce comprised Singapore citizens prior to the acquisition; (b) whether the acquisition terms include guarantees for local headcount retention or technology transfer; and (c) how the Ministry ensures that foreign-founded start-ups benefitting from Singapore's business environment facilitate skills transfer to local workers.

The Senior Minister of State for Manpower (Dr Koh Poh Koon) (for the Minister for Manpower): Sir, the acquisition of Manus is a commercial agreement between parties involved. The Ministry of Manpower (MOM) does not intervene in such acquisition agreements. The Government does not disclose details of the workforce demographics of individual companies in line with confidentiality obligations, and all foreign companies operating in Singapore are expected to comply with Singapore's manpower laws and fair hiring practices.

The Economic Development Board (EDB) works closely with foreign companies and startups to facilitate skills transfer, training and capability development for the Singapore workforce, ensuring that Singaporeans benefit from the presence of such companies in our business environment. For example, EDB has rolled out initiatives such as the Enterprise Compute Initiative (ECI) to support skills transfer and capability development. ECI partners major cloud service providers such as Microsoft to help Singapore-based companies build dedicated local AI teams. These companies can also tap on reskilling and upskilling support from Workforce Singapore and SkillsFuture Singapore to equip our Singaporeans with the capabilities needed to take on new growth job roles.

Mr Speaker: Mr Low.

Mr Low Wu Yang Andre (Non-Constituency Member): Thank you, Speaker. I have three supplementary questions for the Senior Minister of State.

Just to set the context, Manus AI is an example of a company that was redomiciled to Singapore from another jurisdiction. The timeline was they were launched in March of last year, moved to Singapore in around the middle of the year and the acquisition was announced in December. So, one cannot help but feel that Singapore's business environment was taken advantage of opportunistically to achieve certain aims and then now, being cast aside.

So, my three supplementary questions are: regarding redomiciled companies, are they subject to any targets on hiring Singaporeans? The second follow-up supplementary question: if they are, what timelines are they expected to comply with in order to meet these targets, after redomiciling? And finally, does MOM have any considerations to discourage companies from using Singapore as a flag of convenience, without accruing any benefits to the Singapore labour force?

Dr Koh Poh Koon: Thank you, Sir. I am mindful that time is running out, so, I will keep my reply short.

In general, we do not treat new, redomiciled or existing companies any differently in terms of hiring practices. All companies operating in Singapore ought to comply with Singapore labour laws. Any arrangements that occur as a result of acquisition or restructuring is something that is a commercial arrangement between companies. The Government will not intervene in it. But we will make sure that when it comes to hiring or retrenchment, as we have discussed in an earlier Parliamentary Question, the laws will protect the rights of our workers and make sure that they are treated fairly and equitably.

3.01 pm

Mr Speaker: End of Question Time. Senior Minister of State Koh, I believe you wanted to make a clarification.

[Pursuant to Standing Order No 22(3), provided that Members had not asked for questions standing in their names to be postponed to a later Sitting day or withdrawn, written answers to questions not reached by the end of Question Time are reproduced in the Appendix.]