Why Singapore Need Foreign Workers?

The idea is to allow into Singapore a controlled and revolving pool of foreign workers due to

Other terms and conditions for Work Permits

Foreign Workers to abide by Work Permit Conditions

Employment Period for Foreign Workers

Offences and Penalties

MOM Sector Specific Requirements for Work Permits

Permit Dependency Ceilings (DCs) at 1 Jan 2008

W.E.F. 01/01/2008 S Pass Quota for all sectors will be 25% of the Work Permit Quota entitlement

Manufacturing Sector: can hire foreigners upto 65% dependency ratio of local full time worker 
(below 40% DR levy is $150 for skilled & $240 for unskilled; above 40% to below 55% DR levy is $150 for skilled
& $280 for unskilled; above 55% to 65% DR levy is $450 per month skilled/unskilled)

Services Sector: can hire foreigners upto 50% of local full time worker (below 30% DR levy is $150 for skilled & $240 for unskilled; above 30% to 40% DR levy is $280 skilled/unskilled; above 40% to 50%DR levy is $450 per month skilled/unskilled)

Requirements: Manufacturing Sector 

Companies in the manufacturing sector include those with the following business activities: 

Manufacturing of basic industrial acids and alkalis; 
Mechanical engineering works; 
Manufacturing and repair of oil/gas field machinery
Manufacturing of waxes, polishes and deodorants; 
Electroplating, hot-tip galvanising, die-casting and heat treatment; 
Wafer fabrication plants; or 
Food manufacturing.

Manufacturing sector companies can recruit workers from the following countries: 

Malaysia; Hong Kong; Macau; South Korea; Taiwan; and People's Republic of China. 

PRC workers can make up 20% within the DC. 

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Service Sector Companies

Companies in the service sector include those with the following business activities: 

Financial, insurance, real estate and business services; 
Transport, storage and communications services; 
Commerce (retail and wholesale trade); 
Community, social and personal services (excluding domestic workers); 
Hotels; Restaurants, coffee shops, food courts and other approved food establishments*; 
Dispatch and delivery services; or Hair-dressing and beauty shops.

* Food-stall licensees paying an annual license fee of $13 cannot employ Work Permit holders. This is because food-stall licensees, unlike restaurants, normally operate small stalls in hawker centres, coffee shops or food courts; these are small and can be operated by the licensees alone or with family assistance.

Service sector companies can recruit workers from the following countries: 

Malaysia; Hong Kong; Macau; South Korea; Taiwan; and People's Republic of China (PRC). 

PRC workers can make up 5% within the DC. 

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Marine Sector Companies

Industries in the Marine sector include companies with the following business activities: 

Ship-building; and/or Ship-repairing.

Description of Activity Singapore Standard Industrial Classification (SSIC) 2005

1 Building of ships, tankers and other ocean-going vessels( including conversion of ships into off-shore structures)35201 
2 Repair of ships, tankers and other ocean-going vessels 35202 
3 Building and repair of pleasure crafts, lighters and boats 35203 
4 Manufacture and repair of marine engines and ship parts 35204 
5 Ship breaking 35205

A company/firm that wishes to be classified under the ship-building and ship-repairing industry must be engaged in one of the 5 above mentioned ship-building or ship-repairing activities. It must also be stated as one of its principal business activities with the Accounting and Corporate Regulatory Authority (ACRA).

Marine sector companies can recruit workers from the following countries: 

Malaysia; and/or Non-Traditional Source (NTS) / North Asian Source (NAS) countries; and/or People's Republic of China (PRC).

Only shipyards, resident contractors and common contractors supported by a registered shipyard are eligible to recruit foreign workers. They are only allowed to work in the above mentioned ship-building or ship-repairing activities within a shipyard's premises.

Specific Marine Sector Requirements to Qualify as Skilled Workers 

For Malaysian workers:

At least a SPM qualification or its equivalent, or a NTC-3 (Practical) Trade Certificate [also known as ITE's Skills Evaluation Certificate (Level 1) from July 2002] that is relevant to the worker's occupation.

For NAS workers:

At least a high school education or diploma qualification, or a NTC-3 (Practical) Trade Certificate [also known as ITE's Skills Evaluation Certificate (Level 1) from July 2002] that is relevant to the worker's occupation.

For NTS or People's Republic of China workers*:

At least a NTC-3 (Practical) Trade Certificate [also known as ITE's Skills Evaluation Certificate (Level 1) from July 2002] that is relevant to the worker's occupation.

*The criteria for skilled worker is applicable with effect from 1st April 2007.

Application Process 

1. Apply for Industrial Classification (applicable to first-time business employers); and 
2. Apply for Prior Approval (PA) to recruit NTS/PRC workers; and 
3. Submit individual Work Permit application after PA has been given

For common contractors: 

A PA is required to recruit NTS/PRC workers. After the PA has been issued, the company/firm can proceed to submit a Work Permit application for each NTS/PRC worker through the shipyard who supported the PA application. 

A PA is not required for the recruitment of Malaysia and NAS workers under the ship-building or ship-repairing contract with the shipyard. The common contractor can proceed to submit the Work Permit application through the supporting shipyard.

For shipyard and resident contractors:

Shipyard and resident contractors are not required to apply for PA to recruit NTS/PRC workers. Proceed to submit the Work Permit application to recruit the foreign workers for their ship-building or ship-repairing contract. The resident contractor is required to submit the Work Permit application through its sponsoring shipyard.

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Construction Sector: Pre-conditions & Requirements

Companies can recruit workers from the following countries: 

Malaysia; People's Republic of China (PRC); or Non-Traditional Sources (NTS) : India,
Sri Lanka, Thailand, Bangladesh, Myanmar, Philippines and Pakistan 
North Asian Sources (NAS): Hong Kong, Macau, South Korea and Taiwan. 

The following categories of employers in the construction sector are required to furnish an additional Security Bond for levy payment (also known as the Levy Bond) for each foreign worker employed:

a. employers who have defaulted on levy payments and whose workers' Work Permits are cancelled as a result; 
b. employers who have been late in levy payments for 3 times within a 12-month period; 
c. employers with a change of Sole-Proprietorship; 
d. new Construction companies that are:

(i) Sole-Proprietorships 
(ii) Partnerships 
(iii) Companies with paid-up capital of less than $50,000 applying for Prior Approval to recruit foreign workers for the first time.

The Levy Bond is $600 per skilled worker and $2,000 per unskilled worker. The total value of the Levy Bond will be based on the number of foreign workers at the point when the Bond is called for. The Bond can be furnished in the form of Insurance/Banker's Guarantee, Cash or Cheque. 

Generally, the validity and monitoring period for the Levy Bond is 12 months, except for new companies, which is 6 months. 

Employment Contracts of Workers

Like local workers, all foreign workers are covered under the Employment Act. As such, all employment contracts should include the basic terms and conditions of the foreign workers' employment in Singapore. These terms and conditions should be no less favourable than those provided for in the Employment Act. 

Employers who fail to adhere to the Employment Act are liable to be barred from making Work Permit applications in future.

Construction Safety Orientation Course (CSOC)

The Construction Safety Orientation Course is a full-day course conducted by various training centres accredited by Ministry of Manpower's Occupational Safety & Health (OSH) Division. 

It was introduced to ensure that construction workers are familiar with common safety requirements and health hazards in the industry, and also aims to educate them on the measures that need to be taken to safeguard them against accidents and diseases. 

All foreign workers in the construction sector must attend the Construction Safety Orientation Course (CSOC) and obtain a valid CSOC Pass during their employment in Singapore. Employers must ensure that the foreign workers who have just arrived in Singapore or current Work Permit holders whose CSOC Passes are expiring have been registered for the CSOC. 

The foreign workers' Work Permits will be revoked if they failed to attend or did not pass the CSOC, and the employer will not be eligible to apply for new Work Permits for a period of six months. For foreign workers who have failed the CSOC, the employer must re-register them for the CSOC as soon as possible. 

To employ workers from the People's Republic of China (PRC) or Non-Traditional Sources (NTS), employers must apply for the following in the order below: 

a) Man-Year Entitlement (MYE); 
b) Prior Approval (PA); 
c) In-Principle Approval (IPA) for each Work Permit; and 
d) Purchase Security Bonds. 

To employ Malaysian or North Asian Source (NAS) workers, MYE and PA are not needed. Employers need only apply for IPA for individual Work Permits. 

Do note that NTS, PRC and NAS workers cannot be in Singapore at the time of application

NAS: North Asian Sources – Hong Kong, Macau, South Korea and Taiwan 

NTS: Non-Traditional Sources – India, Sri Lanka, Thailand, Bangladesh, Myanmar, Philippines, Pakistan 

PRC: People's Republic of China 
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Enquiries to Steve 65-98365486 fax 65-64677800 email: filmo@filmo.com

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updated 010108