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Migrant workers to suffer as Singapore hikes worker levy
(Volume 26, No. 512)
NEW rules introduced by Singapore’s Ministry of Manpower (MOM) could reduce job opportunities for Myanmar workers, overseas employment experts say.
According to media reports, MOM is to increase the levy to be paid by Singaporean employers in respect of the foreign workers they employ.
“This new policy will seriously reduce employment demand from Singapore for Myanmar workers,” said a spokesperson for Yangon-based New Fortune Employment Agency.
The key changes are reportedly the introduction of new tiers and an adjustment of the rates every six months.
Ko Zaw Oo, who has permanent resident status in Singapore, told The Myanmar Times in an email interview that the levy for foreign workers would be increased in July. This could cause employers to hire only locals in order to cut costs, he said. Foreign workers with permanent resident or who have employer permits are exempt from the levy.
“If demand from Singapore is reduced, there will be fewer employment opportunities for Myanmar workers in Singapore and our industry will be hit,” a spokesperson for New Fortune said, since Singaporean companies would hire locals instead of Myanmar workers.
It is estimated that 100,000 Myanmar nationals live and work in Singapore, the second- largest number of expatriate workers after Thailand, where about 1.2 million Myanmar workers live. Singapore has more than a million foreign workers, many in construction, of whom about 856,000 hold work permits. These are classified as either low-levy or high-levy workers.
“Singaporean employers prefer to hire low-levy workers, because the difference in rates is great,” he said. Even the low levy ranges from S$20-25 per month, while the levy for SPass holders is S$50 per month.
“I think the Singaporean government is going to recruit only skilled workers and limit the influx of foreign workers,” said an official from one overseas employment agency.
“Singapore will reduce its dependence on foreign workers over the next five years. This is the initial step towards controlling the flow of foreign workers,” he said.
Ko Zaw Oo said MOM would check all employment agents, some of whom are allegedly suspected of submitting false documents when recruiting foreign workers to be employed in Singapore.
MOM reportedly said the levy changes would be introduced gradually over the next three years to give businesses time to adjust, and there would be no changes to the levy for foreign domestic workers.
