Decrease in Foreign Worker Quota for S Pass
Singapore has long welcomed the inflow of foreign workers that bring about benefits to our economy. However in recent years, the Singapore government has been revising and tightening immigration policies as well as reducing the number of foreign worker quota for S Pass holders.
In Singapore Budget 2020, the decrease in S Pass foreign worker quota will be phased in 2 steps.
The first step will begin on 1 Jan 2021, where the number for S Pass sub-Dependency Ratio Ceiling (DRC) will decrease from 20% to 18%.
The second step will begin on 1 Jan 2023, where the cut will be further lowered to 15%.
The announcement was made in advance to allow companies time to adjust to the changes.
These efforts are to prevent companies from hiring low-cost foreign workers when qualified locals with the same skills and expertise are available.
The number of S Pass holders in the construction, manufacturing, marine shipyard and process sectors have grown steadily over the years and are projected to increase in the near future. In light of the situation, the government has emphasized a need for sustainable growth in S Pass holders to allow fair and equal opportunities for the local workforce.
The cut is expected to extend to the manufacturing sector in the near future once there is more certainty in the economy.