Singapore (PRWEB) June 15, 2011
Rikvin International, a Singapore work pass specialist company, carried out an analysis of the Labor Market Report and the prevailing growth trend of Singapore. The analysis substantiates the Singapore government’s stand on foreign talent and its rationale behind work passes. Rikvin says that foreign talent remains a cause of concern among the local workforce, however given the tight labor situation and sizzling growth forecasts it is inevitable to keep the doors open for the foreign talent. The government is keen on calibrating the pace of influx of foreign workers and has also raised the thresholds of salary for the work pass applicants. Rikvin’s findings were echoed by the National Development Minister Khaw Boon Wan, at a recent dialogue session with local youths, where he reiterated that with fewer foreigners to bolster the tight labour market here, economic growth, and consequently, job opportunities and wages will be impacted.
Employment Situation Report by the Manpower Research and Statistics Department of the Ministry of Manpower was released recently. It revealed that employment creation in the first quarter of the year in Singapore was fairly strong with a total of 23,700 jobs created. It is slightly lower than that of last year’s figure, which was spiked due to the hiring spree of the then newly launched Integrated Resorts. The bulk of the new jobs are from the services sector followed by the construction sector.
The overall unemployment rate fell from a seasonally adjusted 2.2% in December 2010 to 1.9% in March 2011. Among the resident work force, the unemployment rate declined over the same period from a seasonally adjusted 3.1% to 2.7%. Both the overall and resident unemployment rates are the lowest in three years reflecting the tight labor market.
The report endorses the fact that Singapore was relatively unfazed by the global economic crisis, which left millions unemployed around the globe. Singapore has swiftly gathered to hit the road towards growth, with full momentum. The island’s economy expanded the most in Southeast Asia last quarter, and the GDP forecast for the rest of the year has been upwardly revised on May 19th. As against the previous 4-6% growth forecast in the beginning of the year, the country is expected to grow by 5-7%, as per the Ministry of Trade and Industry’s revised forecast.
Singapore’s importance as an epicenter of Asian economic activity is witnessing exponential growth. The tiny island country lacks all the vital natural resources, except for the high caliber of human resources it houses. The city state has achieved its economic salience in the east, by relying on a merit based excellence system.
Singapore has instituted a carefully devised and enforced merit based immigration system that attracts the best and brightest talents from around the globe to complement its resident work force. As a result a synergy is established, whereby international companies are able to find the right blend of team to carry on the regional operations efficiently.
In a globalized world, companies with cross border activities have realized the importance of having a team that is also a microcosm of the market to which they are catering to. Singapore’s workforce structure provides them the perfect setting for their regional ventures therefore many international businesses choose Singapore as their regional base, thus Singapore’s resident and foreign talent is undoubtedly a strategic resource for sustaining the economic growth of the island state.
Singapore has a relatively open immigration policy towards foreign talent, to ensure a seamless pool of talent and skills to sustain a resilient and vibrant economy. There are various types of Singapore work visas starting from work permits, for the lowest skilled laborers, to P1 and P2 category employment passes, to attract the niche professionals with meritorious qualifications both in terms of education and experience.
Notably the emphasize is on attracting high end talent and to this end the government has in place an Overseas Talent Recruitment Scheme under which companies, subject to certain conditions, that hire employees under P1, P2 and PEP category of work visas are entitled to tax deductions of up to S$275,000 a year. The scheme is also open to Singaporeans and Singapore PRs, thus encouraging niche talents to return home.
Singapore also attracts foreign entrepreneurs to setup their startups in Singapore by offering a work pass called Entrepass. This scheme is also open to executives of established foreign companies which setup a Singapore subsidiary. So entrepreneurs, with innovative ideas and lucrative market potential, establish Singapore companies which create employments for the residents and generate other spin offs to the local economy in terms of business spending and corporate taxes.
The immigration policy is highly calibrated to protect the interest of the local labor force. It must be noted that the resident labor force profile has been changing. As per the MOM’s 2010 labor market report nearly 52% of the residents are employed as Professionals, Managers, Executives and Technicians (PMET) and the number of residents employed in Non-PMET jobs has declined and growing at a slower pace. So the immigration policy has ample checks & balance, in the form of foreign worker levy to protect the interest of the local Non-PMET workers and allows for controlled flow of niche talent to meet any potential shortfall of talents for the PMET jobs.
Commenting on the labour market condition, Mr. Satish Bakhda of Rikvin, a Singapore based company incorporation and migration services agency, says “Devoid of natural resources, a scenario which cannot be changed, Singapore is left only with the human resource – a resource which can be designed and tapped according to the external conditions. Singapore manages this with high precision, through its immigration policy allowing a controlled flow of foreign talent. With the upward revision of GDP, businesses are gearing up for the challenge. Amidst the backdrop of the tight labor market they are forced to keep up with the growth, while managing high labor costs. To some extent the situation is eased by the controlled flow of foreign talent. Singapore work passes for various category of foreign workers has been designed to facilitate the economic growth, with due precedence to the welfare of the resident enterprises and work force.”
Rikvin offers company incorporation for entrepreneurs worldwide. Establish since 1998, Rikvin specialise in Singapore company registration, Singapore employment pass, Entrepass and related corporate services. For more information visit the company website at: http://www.rikvin.com/
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