SINGAPORE: An upcoming revamp of the work permit framework is set to reduce the costs and time needed to train new migrant workers.
This will help firms carve out higher-value jobs for locals while meeting the demand for rank-and-file workers, industry players told The Straits Times.
Companies in services and manufacturing also welcomed an expansion to a list of occupations for which they can hire work permit holders from more locations, with more job roles and more locations added to the list.
The surprise addition of Bhutan as one of the new places where employees can be sourced will let firms access a whole new profile of workers, observers said.
Manpower Minister Tan See Leng had announced on March 6 that from July 1, there will be no hard cap on the maximum duration that work permit holders can work here – a move that industry players said is one of the furthest-reaching labour policy changes in recent years.
Currently, these workers can work in Singapore for only between 14 and 26 years, depending on their skill level and country of origin.
With the change, work permit holders – aside from migrant domestic workers, who fall under a slightly different regime – will be able to work till the prevailing retirement age, which is now 63.
One worker who will benefit from the lifted cap is Sethu Rajinikanth, a facility executive at Singapore shipbuilder Strategic Marine.
If this cap were not lifted, Rajinikanth, who has worked for the company since he came to Singapore 17 years ago, would be able to work here for only another nine years due to the 26-year limit on his work permit.
Under the new rules, Rajinikanth, who is 48, will be allowed to continue working here for about five years longer.
He said he feels greater job security with the pressure of the employment limit lifted, as he can continue building his career in Singapore and save up more for his future.
“Otherwise, I might have to go home or find work in another country,” he said, adding that he enjoys the variety of tasks he gets to do, which includes overseeing repairs and coordinating the work of contractors.
Rajinikanth, who is an Indian national, also said he looks forward to mentoring younger workers at his workplace.
Strategic Marine’s chief corporate finance officer Ivan Koh said these changes will help the firm maintain a higher level of experienced staff, making the company’s operations more stable and efficient.
That said, Koh noted some potential challenges, such as managing higher healthcare costs and adapting work processes to these workers’ physical capabilities.
“Nonetheless, the benefits of preserving institutional knowledge and enhancing workforce continuity far outweigh these challenges,” he said.
By reducing the required frequency of recruiting and training new hires, the move will also let the firm better plan its workforce development and pipeline of skilled workers for the long term, he said.
Out of 238 work permit holders currently employed by Strategic Marine, 12 of them are aged 50 and above.
Many have a maximum tenure of 26 years, in view of their higher skill levels, with five workers having worked for Strategic Marine for more than 14 years already, Koh said.
Meanwhile, the removal of employment duration limits for work permit holders will especially help employers in the process industry retain welders, equipment fitters and field supervisors.
The process industry includes manufacturers of petroleum, petrochemicals, specialty chemicals and pharmaceutical products, as well as firms that build and maintain the plants of these manufacturers.
“These jobs require deep technical expertise and years of hands-on experience, yet remain hard to fill with local workers due to their specialised nature,” said Association of Process Industry executive director Wayne Yap.
Despite the latest rule change, Yap said manpower constraints remain a challenge.
Foreign worker quota and levy requirements for the sector were recently tightened in 2024. “This new policy provides much-needed flexibility, but companies must continue adapting to ensure sustainable workforce planning.”
The moves help address persistent manpower shortages that manufacturing firms face, while enabling continued investments in automation, advanced manufacturing technologies and innovation, said Lennon Tan, president of the Singapore Manufacturing Federation.
Beyond the changes to maximum tenure and maximum age, the sector will also get to tap the Non-Traditional Sources Occupation List to a greater degree.
The list was introduced in September 2023 to let services and manufacturing employers hire manual labour on work permits from a wider range of locations, rather than employing them under an S Pass, to ensure a higher skills bar for the S Pass as intended. — The Straits Times/ANN
