Impact of S Pass and Employment Pass Tightening Measures on Singapore's Attractiveness as Location for Companies' Regional Headquarters

Debated in Parliament on 8 Jul 2013.

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Ms Tan Su Shan asked whether studies have been done to assess the number of multinational corporations (MNCs) using Singapore as a regional headquarters and how tightening S Pass and Employment Pass policies might affect their executive training and relocation decisions.
Minister Lim Hng Kiang cited a 2010 survey showing 44% of MNCs with Asia Pacific headquarters are in Singapore, attributing this to the country's open economy, infrastructure, talent, and connectivity, rather than just training programmes.
While tightening foreign worker policies could pose challenges, the Minister believes MNCs are unlikely to relocate solely due to training programme disruptions, and ongoing engagement with MNCs shows continued confidence in Singapore's strategic advantages.
Investment forecasts from the Economic Development Board reflect sustained confidence, with $11-$13 billion in fixed asset investments expected for 2013.

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Full Transcript

Tan Su Shan

Ms Tan Su Shan asked the Minister for Trade and Industry whether studies have been done to (i) determine how many MNCs use Singapore as its regional headquarters and so locate their key executives here to gain experience; and (ii) survey if a tightening of the issue of S Passes and Employment Passes will negatively impact MNCs' international training programmes for executives and result in a significant number of affected MNCs deciding to relocate their regional functions elsewhere.

Lim Hng Kiang

According to a 2010 survey by the Frontier Strategy Group, 44% of MNCs with an Asia Pacific headquarters have chosen to site their regional headquarters in Singapore, ahead of Hong Kong and Shanghai at 17% and 13% respectively.

Using Singapore as a base to train key executives is only one of the reasons why MNCs locate their regional headquarters here. Many MNCs have chosen Singapore to access opportunities in Asia because we have an open economy, a world-renowned business infrastructure and a talented workforce. Moreover, we enjoy strong business and cultural links to many Asian markets, which enables companies to tap Asia's growth potential more effectively.

Changes to our domestic policies will affect companies in Singapore. For example, tightening our foreign worker policy may make it more difficult for companies to bring in executives for training and exposure. However, it is unlikely that MNCs will choose to relocate their regional headquarters purely because their international training programmes are affected.

To maintain our well-established advantages, we continually engage executives from MNCs to help them understand and accept our policy direction. These engagements also enable us to address concerns and obtain feedback on our policies. Thus far, MNCs remain confident of the value of siting their regional functions in Singapore due to our innovation capacity, strategic reach and connectivity with the pan-Asian region. This confidence is also reflected in

Page: 113

EDB's investment forecast of $11-$13 billion in fixed asset investments for 2013.

Summary written by AI (learn more)

Ms Tan Su Shan asked whether studies have been done to assess the number of multinational corporations (MNCs) using Singapore as a regional headquarters and how tightening S Pass and Employment Pass policies might affect their executive training and relocation decisions.
Minister Lim Hng Kiang cited a 2010 survey showing 44% of MNCs with Asia Pacific headquarters are in Singapore, attributing this to the country's open economy, infrastructure, talent, and connectivity, rather than just training programmes.
While tightening foreign worker policies could pose challenges, the Minister believes MNCs are unlikely to relocate solely due to training programme disruptions, and ongoing engagement with MNCs shows continued confidence in Singapore's strategic advantages.
Investment forecasts from the Economic Development Board reflect sustained confidence, with $11-$13 billion in fixed asset investments expected for 2013.

Questions identified by AI (learn more)

Impact of S Pass and Employment Pass Tightening Measures on Singapore's Attractiveness as Location for Companies' Regional Headquarters | PAPERCUTS

Impact of S Pass and Employment Pass Tightening Measures on Singapore's Attractiveness as Location for Companies' Regional Headquarters

Debated in Parliament on 8 Jul 2013.

Summary written by AI (learn more)

Ms Tan Su Shan asked whether studies have been done to assess the number of multinational corporations (MNCs) using Singapore as a regional headquarters and how tightening S Pass and Employment Pass policies might affect their executive training and relocation decisions.
Minister Lim Hng Kiang cited a 2010 survey showing 44% of MNCs with Asia Pacific headquarters are in Singapore, attributing this to the country's open economy, infrastructure, talent, and connectivity, rather than just training programmes.
While tightening foreign worker policies could pose challenges, the Minister believes MNCs are unlikely to relocate solely due to training programme disruptions, and ongoing engagement with MNCs shows continued confidence in Singapore's strategic advantages.
Investment forecasts from the Economic Development Board reflect sustained confidence, with $11-$13 billion in fixed asset investments expected for 2013.

Questions identified by AI (learn more)

Full Transcript

Tan Su Shan

Lim Hng Kiang

Page: 113

EDB's investment forecast of $11-$13 billion in fixed asset investments for 2013.

Summary written by AI (learn more)

Ms Tan Su Shan asked whether studies have been done to assess the number of multinational corporations (MNCs) using Singapore as a regional headquarters and how tightening S Pass and Employment Pass policies might affect their executive training and relocation decisions.
Minister Lim Hng Kiang cited a 2010 survey showing 44% of MNCs with Asia Pacific headquarters are in Singapore, attributing this to the country's open economy, infrastructure, talent, and connectivity, rather than just training programmes.
While tightening foreign worker policies could pose challenges, the Minister believes MNCs are unlikely to relocate solely due to training programme disruptions, and ongoing engagement with MNCs shows continued confidence in Singapore's strategic advantages.
Investment forecasts from the Economic Development Board reflect sustained confidence, with $11-$13 billion in fixed asset investments expected for 2013.

Questions identified by AI (learn more)

Impact of S Pass and Employment Pass Tightening Measures on Singapore's Attractiveness as Location for Companies' Regional Headquarters

Summary

Questions Identified

Full Transcript

Tan Su Shan

Lim Hng Kiang

Summary

Questions Identified

Impact of S Pass and Employment Pass Tightening Measures on Singapore's Attractiveness as Location for Companies' Regional Headquarters

Summary

Questions Identified

Full Transcript

Tan Su Shan

Lim Hng Kiang

Summary

Questions Identified