Singapore's race to lure global talent revs up local angst over place on jobs ladder

Singapore's age-old tensions over hiring foreign workers have resurfaced as the city state joins the global race to court top talent, spurring fears that domestic jobseekers may be crowded out from employment at a time of growing anxiety over the direction of the economy.

As the world vies for foreign talent to ease the manpower crunch in sectors like healthcare and technology, Singapore is making its pitch as an attractive location with "targeted enhancements" to its existing work visa to bring in high achievers.

But the issue of who should have first dibs at the best jobs has been a long-running sore point, with locals often accusing companies of subjecting them to unfair hiring practices and favouring less-qualified foreigners for some roles.

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"The common question is, 'why are companies looking to employ overseas talent instead of training locals?'" said David (not his real name), a Singaporean who works in management at a bank in the city state.

"I don't think it's difficult for these Singaporeans to pick up soft skills and technical skills," he said. "So the question is, are there any opportunities for locals to be trained to cater to the workforce, rather than to have companies look elsewhere?"

David said he had also noticed "ethnic enclaves" - a high concentration of foreigners of the same nationality - forming in some departments in his company.

The ruling People's Action Party (PAP) government says the criticism is misdirected, as luring overseas talent has a direct and significant effect on job creation for locals.

"Being open, being connected, and bringing in complementary global talent has helped to grow the overall pie for Singapore and more good job opportunities for locals," Manpower Minister Tan See Leng told MPs during a parliamentary debate in early October.

The government has taken great pains to assure residents that its openness to immigrants does not mean locals will be left behind after it recently unveiled a new work visa.

The Overseas Networks and Expertise Pass (One Pass) is aimed at skilled professionals who earn a minimum monthly salary of S$30,000 (US$21,300). The scheme will also grant them a five-year stay and allow their spouses to work in Singapore, compared to a regular employment pass that lasts up to two years for first-time candidates and three for renewals.

Applicants must also show they have been working for at least a year for an established firm with a market capitalisation of US$500 million or a US$200 million minimum annual revenue.

But many say that greater transparency in policy communication, safeguards against biased recruitment practices, and investment in skills development in the local workforce are needed.

Jamus Lim, a member of the main opposition Workers' Party, said that while the One Pass programme was new, the old issues surrounding hiring foreigners remained unresolved.

"Some Singaporeans may have insufficient exposure to the region, and hence are a less attractive candidate for regionally oriented roles," Lim told This Week In Asia. "Set against this is the fear that foreign firms and human resources managers are inclined to hire their own and game the system."

Lim, whose social media post on the topic in September drew a forceful riposte from Manpower Minister Tan, added that the role might be defined with a preselected candidate in mind.

He warned that if a "significant minority of firms" adopted these practices, it "risks undermining our social contract, and allows discontent to ferment".

Other Singaporeans are vocal about the need for openness if the city state is to cement its place as a global business hub with an embrace of large regional and multinational corporations.

For Peter Bithos, the Asia CEO of Seek, which operates employment platforms like JobStreet, Singapore was "the most logical place" to move to and establish a regional tech start-up eight years ago.

Besides its political stability and strong currency, schemes like Singapore's One Pass had helped to signal its openness to foreign talent, especially amid fierce global competition, the American said.

The pandemic spurred a growing appetite for remote working and fewer people were now willing to move abroad for their jobs, Bithos said, meaning governments must offer more attractive incentives and relocation packages to attract talent "more than ever before".

Wee Luen Chia, area vice-president and managing director (Asia) at software firm ServiceNow, noted it was not enough to offer more jobs. "The goal should be advancing towards 'better' jobs with a forward focus."

Wee said the One Pass scheme should be judged in tandem with the new push for digital skills and innovation locally, pointing to the government's S$200 million (US$142 million) investment in schemes to build digital capabilities in businesses and workers over the next few years.

"The current policies centred on creating economic opportunity will deliver greater talent prospects for all and continue to serve Singapore well both domestically and internationally," he added.

But others, like David, believe this to be a miscalculation and that luring more foreigners to top positions would result in discrimination against locals.

According to David, foreign bosses in his firm appeared more inclined to hire their expat friends who were reluctant to share skills with locals, creating a hostile work environment for local staff members.

Tafep, the government agency that oversees workplace discrimination, said it received an average of 379 complaints each year from 2014 to 2021. Prejudice based on nationality made up the most number of grievances, at an average of 233 cases each year.

Carmen Wee, the founder and CEO of a strategic HR advisory services firm, said there would "always be grounds for such concerns" since employers could "hire not just based on skills, but 'comfort' around likeability, similar cultural traits, or preferences".

"If there are insufficient safeguards in place at the company level to promote inclusive hiring and talent development, after the first layer of vetting by the regulators, then local talent might not have a shot at senior roles, over time, even if they possess the skills and attributes," Wee said.

Some HR advisers argue that government efforts to determine whether companies bring in qualified foreign professionals - through initiatives such as its two-stage eligibility framework for employment-pass holders that takes effect next September - have helped to level the playing field.

HR expert Mayank Parekh said these hiring safeguards would help raise "the average quality of foreign employees" in Singapore, though "more can be done to accelerate development and heighten visibility" of locals through mentorships and structured networking programmes.

But Singaporeans are particularly sensitive to who gets what in a competitive job market amid a cost-of-living crisis and an impending global recession.

Terence Ho, Associate Professor in Practice at the National University of Singapore's Lee Kuan Yew School of Public Policy, said although many recognised the need for foreigners "to top up the local workforce and to grow the collective economic pie", the government must communicate these policies clearly.

Authorities should also ensure impartial employment practices and invest in citizens' career development to "give them the assurance that they will have fair opportunities" in the workplace, Ho added.

He suggested that the government track the proportion of Singaporeans taking on senior corporate leadership roles in each sector to help ease concerns among locals and boost social security in a city with notoriously high living expenses.

"Ultimately, citizens must feel that they benefit from Singapore's openness to international talent and competition if Singapore is to avoid nativist sentiments from taking root," Ho said.

This article originally appeared on the South China Morning Post (SCMP).

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