Proposal to Extend Household Services Scheme to Cleaning Businesses Providing Non-residential Cleaning Services
Ministry of ManpowerSpeakers
Summary
This question concerns whether the Household Services Scheme’s provision of female workers from specific source countries can be extended to non-residential cleaning businesses. Minister for Manpower Dr Tan See Leng stated that this extension requires careful study to prevent job competition and downward pressure on wages for local workers. He emphasized that firms should prioritize automation and job redesign to reduce manpower reliance rather than increasing their dependence on lower-wage migrant labor. Minister for Manpower Dr Tan See Leng also highlighted the Cleaning Progressive Wage Model, which schedules sustained wage increases from 2023 to 2028 for local workers. This policy focuses on enhancing the sector’s attractiveness and productivity through structured training and clear career progression pathways for the local workforce.
Transcript
46 Mr Mohd Fahmi Aliman asked the Minister for Manpower with the formalisation of the Household Services Scheme from 1 September 2021, whether the provision of female workers from India, Myanmar, Sri Lanka, Thailand and Cambodia be similarly extended to cleaning businesses that provide non-residential cleaning services.
Dr Tan See Leng: The Household Services Scheme (HSS) allows eligible companies to hire female workers from more countries such as India, Myanmar, Sri Lanka, Thailand and Cambodia. This is a special arrangement to support households in need of domestic cleaning services.
Allowing these sources at the Work Permit level for other businesses, including non-residential cleaning companies, will need to be carefully studied. Introducing cheaper sources could intensify job competition with locals on the basis of cost and exert downward pressure on wages. COVID-19 has also revealed the risks of over-reliance on lower-wage migrant workers, and it is more sustainable for firms to transform and reduce their manpower reliance instead. Hence, we encourage cleaning firms to instead continue investing in automation to improve their productivity, and re-designing their jobs to better retain and attract local workers.
Licensed cleaning firms are also covered by the Cleaning Progressive Wage Model (PWM), which provides a clear job and training progression pathway for local cleaners, and helps to grow their wages as they improve their skills and productivity. Most recently, tripartite partners agreed on an upcoming six-year schedule of sustained and meaningful wage increases from 2023 to 2028. This will help increase the Cleaning sector’s attractiveness to locals.