Impact of Non-Traditional Source Occupation List Expansion on Local Hiring, Wage Growth, Turnover and Training Outcomes
Ministry of ManpowerSpeakers
Summary
This question concerns safeguards for the Non-Traditional Source (NTS) Occupation List expansion to protect local workers’ productivity and wages. Mr Victor Lye inquired about these protections and the publication of impact data on local hiring, wage growth, and training outcomes. Minister for Manpower Dr Tan See Leng explained that NTS-OL firms must adhere to an 8% sub-dependency ratio ceiling and a $2,000 minimum salary. These measures ensure businesses remain incentivised to raise productivity and redesign jobs, while local wage data is published via the Occupational Wage Survey. The Minister concluded that local wages for NTS occupations remained stable through 2024 and outcomes are reviewed regularly with sector agencies and unions.
Transcript
67 Mr Victor Lye asked the Minister for Manpower (a) what specific safeguards are there to ensure that the Non-Traditional Source (NTS) Occupation List expansion will not lower incentives to raise productivity, improve job design or increase wages for local workers; and (b) whether the Ministry will publish the impact of the expanded NTS Occupation List on local hiring, wage growth, turnover and training outcomes in affected occupations.
Dr Tan See Leng: The Non-Traditional Source Occupation List (NTS-OL) gives businesses access to more diverse sources of labour where there are significant manpower shortages. The occupations are carefully selected in consultation with sector agencies and unions, taking into account the degree of shortages in local manpower and from other approved Work Permit sources. In addition to mainstream quotas and levies, employers are subject to a more stringent sub-dependency ratio ceiling of 8% and a fixed monthly salary criterion of at least $2,000 when hiring Work Permit holders on the NTS-OL. These controls ensure that firms remain incentivised to raise productivity, as well as redesign jobs and raise wages to attract local workers.
The Ministry of Manpower publishes detailed wage data across occupations, including those listed on the NTS-OL, through the Occupational Wage Survey. Based on the latest published data, local wages for occupations on the NTS-OL have remained broadly stable over 2023 to 2024. We will continue to review the impact of the NTS-OL on local employment outcomes regularly with sector agencies and unions.