Operating a recruitment firm is definitely a lucrative business in Singapore.
(PRWEB) December 3, 2010
According to the latest available figures, the unemployment rate (2.2%) in Singapore has nearly gone to the pre-crisis level. Statistical figures reveal that job vacancies rose for the fifth straight quarter. SingaporeStartup.com – a leading Singapore offshore company information portal, anticipates that the strong job market conditions underscore excellent growth prospects for Singapore's recruitment industry.
Job vacancies rose strongly by 73% over the year to 45,100 in June 2010. The total number of jobs generated during the first three quarters of 2010 was nearly 85,500, majority being from the services sector. In 2010, backed by the economic recovery, the recruitment rate as well as the resignation rate has gone up to 2.9% and 2.2% respectively from 2.1% and 1.8% in 2009.
With the record economic growth of Singapore and strong business sentiments, a significant number of big and small businesses have disclosed plans of expanding their workforce for this year as well as in the next two years. There are over 2,500 licensed employment agencies in Singapore. Given the vibrancy of the job market and the changing landscape of the industry, recruitment industry professionals should be able to find lucrative niches in Singapore. Moreover, the industry participants also benefit from the routing of regional recruitment via Singapore, which has proved its capabilities as a talent hub. Intensive research, constant review, a professional approach, extensive networking, and continuous reinvention of service delivery are the fundamentals to succeed in this sector.
In order to operate a recruitment agency, a Singapore corporation must first be setup under the business activities of 78115 (executive search) or 78114 (employment agency excluding maid agencies). It is mandatory to obtain an Employment Agency License (EAL) from the Ministry of Manpower. It must be noted that the EAL is issued to a resident natural person and not to the corporate body and it must be renewed annually.
Recently in November 2010, amendments have been proposed to the Employment Act which governs the agencies. It is the first ever amendment in 26 years since the law was enacted. In order to curb some unscrupulous activities in the industry the proposed amendments seek to increase the penalties and accountability of the key stakeholders of the agencies.
Commenting on the potential for recruitment business in Singapore, Mr. Darren Leow, a senior member of the SingaporeStartup.com team said, "Singapore-based firms be it MNCs or SMEs are on a hiring spree. As the economy continues to do well more companies are likely to expand their workforce. The IT and financial services sector are hot as far as hiring sentiments are concerned. We find that most of the industry's major players have already setup a presence in Singapore and there are new firms mushrooming everyday. Operating a recruitment firm is definitely a lucrative business in Singapore."
More information about starting a business in Singapore can be found at http://www.SingaporeStartup.com.