Impact of Efforts to Strengthen Singapore Core at Workplaces on Companies' Ability to Fill Specialised Roles

Mr Yip Hon Weng asked the Minister for Manpower with the initiatives to strengthen the Singaporean Core in the workforce and COVID-19 uncertainties that could have prompted some foreigners to leave (a) whether Singapore companies have reported greater difficulties in filling specialised roles in the past two years; (b) how can local companies position themselves as attractive places for global talent to work for; and (c) what are some upcoming initiatives to ensure Singapore remains attractive to global talent.

Our labour market indicators suggest that over the past year, the market has tightened. While GDP grew 7.2% last year and local employment rose, total employment as at the third quarter of 2021 was still below that in 2019. The main reason for this is COVID-19 entry restrictions. When foreign workers leave Singapore, whether because their contracts end or they wish to go home to their families after an extended time apart, businesses have not been able to bring in replacements easily. MOM has been carefully monitoring the situation.

In the second half of 2021, the Government eased entry restrictions in a calibrated manner, balancing public health considerations and the needs of our economy. The net decline in the non-resident workforce has slowed in 2021 and saw a small net gain in November 2021. Barring unforeseen circumstances, we expect to hold the course, which will enable businesses to replenish their foreign workforce where there are shortages.

At the same time, we continue to support our businesses to strengthen their local workforce. We encourage businesses facing hiring challenges to relook at and refine their recruitment strategies. For instance, many businesses still prefer the "plug-and-play" approach, seeking experienced jobseekers who can hit the ground running. However, skills shortages in emerging areas often mean that demand outstrips supply, resulting in unfilled vacancies.

Through programmes such as the Career Conversion Programmes (CCPs), which provide training and salary support to businesses who hire and reskill mid-career individuals for new occupations with good long-term prospects, we are helping businesses to move towards a "plug-train-and-play" approach, hiring and upskilling mid-career individuals who may not have the experience, but have the aptitude and willingness to learn. Businesses can also tap on the SGUnited Mid-Career Pathways Programme to take on mid-career jobseekers via an attachment programme instead. Businesses who have participated in these programmes have found success in considering a wider pool of jobseekers, including mid-career individuals from other sectors and senior workers.

In addition, some vacancies take longer to fill because the wage or working conditions are not as attractive as other options available to jobseekers. Businesses may need to redesign the job role, or rethink their business model and operations, such as including flexible work arrangements.

The Member also asked what we are doing to ensure that Singapore remains attractive to complementary global talent. The Member would recall that we debated this extensively on two occasions in Parliament last year, where the House affirmed the need for Singapore to stay open and connected to the world to grow and prosper. The Government works hard to ensure that businesses and individuals continue to choose Singapore because of our openness, rule of law and consistency in policies. A key part of our strategy is to have a work pass regime designed to enable companies to access a diverse pool of foreign workers who can complement our local workforce to deliver good jobs for Singaporeans.

We continually update our foreign workforce policies to enable firms to bring in complementary foreign manpower. For example, given the global competition for tech talent, we introduced specific schemes such as Tech.Pass and Tech@SG to provide firms with greater access to specialised manpower in the tech sector. And as I mentioned last year, we are also exploring refinements to our Employment Pass framework to help us better achieve our objectives of a strong Singaporean core, complemented by a diverse foreign workforce, which I will provide more details on at a later stage.

Ultimately, our priority remains focussed on improving the livelihoods of Singaporeans; through the continued and sustainable growth of our economy and the creation of good jobs for Singaporeans. We will continue to update our policies to secure relevant job opportunities with good wages and prospects, and better lives for Singaporeans in a globalised and fast-changing economy.