Tan See Leng: 20% of larger firms have 30%+ foreign PMET in workforce for over a decade

SINGAPORE: Manpower Minister Dr Tan See Leng revealed that over the past decade, the proportion of larger firms maintaining a workforce composed of 30% or more foreign professionals, managers, executives, and technicians (PMETs) has remained steady at 20%.

Conversely, small firms, on average, have seen around 20% of their workforce constituted by foreign PMETs over the same period.

Dr Tan added that in 2023, the percentage was even higher for small firms with fewer than 25 PMETs, reaching 28%.

Dr Tan was responding in a written reply to a Parliamentary Question filed by Mr Leong Mun Wai, Non-Constituency MP from the Progress Singapore Party (PSP).

Mr Leong asked about the annual percentage of companies, since 2014, where more than 30% of their PMET workforce comprised foreign nationals, and where employees of a single foreign nationality represented over 20% of all PMETs employed.

In response, Dr Tan explained that the Ministry of Manpower (MOM) differentiated between small firms, which typically have fewer than 25 PMETs and larger firms with 25 or more PMETs.

“This is because small firms have a very small PMET base and their proportion of foreign PMETs will be prone to fluctuations.”

“The median number of PMETs in small firms which hire PMETs is only two. This means that even with one foreign PMET, the median small firm would have exceeded the 30 % foreign PMET share, or 20 per cent single nationality share,” he said.

Dr Tan emphasized the significance of examining the workforce profiles of larger firms, each with 25 or more PMETs, as they typically maintain more stable compositions and employ the majority of Employment Pass (EP) holders.

While small firms account for 96 per cent of all firms, they hire only about 30 per cent of EP holders, he added.

Regarding the proportion of firms where employees of a single foreign nationality constitute over 20% of all PMETs employed, Dr Tan stated that this figure has remained steady at 10% over the past decade for larger firms.

Conversely, for small firms, the average over the same period was around 20%, escalating to 30% in 2023.

Dr Tan highlighted the implementation of MOM’s points-based Complementarity Assessment Framework (COMPASS), which aids employers in selecting high-caliber foreign professionals while enhancing workforce diversity and fostering a robust local core.

“This has been in place for new Employment Pass applicants since September 2023, and will apply to renewal applicants from September 2024.”

“MOM will continue to closely monitor the workforce profile of all firms and adjust our policy levers where appropriate,” said Dr Tan.

NCMP Leong inquires about wage breakdown of local and foreign PMETs across industries

Separately, Mr Leong sought the Minister’s insight into the wage breakdown of local and foreign PMETs across various industries from 2020 to 2023.

In response, Dr Tan furnished data on the median fixed monthly salaries of non-resident EP and S Pass holders per industry, as they represent the predominant non-resident PMET positions.

These fixed monthly salaries encompass both the basic monthly salary and fixed monthly allowances.

Based on the statistics provided, the median fixed monthly salary for EP holders in manufacturing, construction, and services ranged from S$7,800 to S$9,800 as of June 2023.

Conversely, for S Pass holders, the median salary varied from S$3,200 to S$3,300.

Dr Tan noted that MOM pegs the minimum hiring costs of EP and S Pass holders with the top one-third of resident PMETs and Associate Professionals & Technicians (APTs) respectively.

This approach ensures that companies recruit top-tier talent, he said.

In March, MOM announced that starting in 2025, the threshold for the minimum monthly qualifying salary for new EP applicants will be raised from the current S$5,000 to S$5,600.

The financial services sector, known for its higher wage norms, will see an even more substantial increase, with a new minimum of S$6,200 a month, up from the current S$5,500.

This adjustment marks the first increase since September 2022 when the qualifying salaries for new applicants were raised by S$500.

The change is said to be part of the government’s effort to ensure fair competition for local workers by aligning foreign professionals’ salaries with the top one-third of wages for local PMETs.