SINGAPORE: Lifting work permit duration limits and raising the age ceiling will not lead to an increase in foreign worker numbers as Singapore’s work permits remain capped by quotas, economists said.
But the country needs to rethink its social compact with its transient migrant workforce, particularly older workers who have lived here longer and have more healthcare needs as well as social connections, some analysts said.
Starting in July, work permit holders will no longer have a maximum employment duration, which currently ranges from 14 to 26 years depending on skill level, sector and where they are from. Workers from Malaysia, Hong Kong, Macau, South Korea and Taiwan already have no such restrictions.
All work permit holders are still limited by a maximum age, which will be raised to 63, aligning with the local retirement age.
Sector-specific foreign worker quotas – often referred to as dependency ratio ceilings – also remain unchanged, and these range from 35 per cent in the services sector to 83.3 per cent in the construction and process sectors. The number of work permit and S Pass holders in a company cannot exceed its sector’s quota.
As of June 2024, Singapore had about 843,400 work permit holders, excluding domestic workers.
Labour economist Walter Theseira, an associate professor at the Singapore University of Social Sciences (SUSS), said the policy is not about increasing numbers but optimising the composition of the workforce.
“The actual number will still be capped by the quota policy, so unless the quota is relaxed or firms are able to hire more local manpower, there will not be growth in work permit holders,” he said.
Associate Professor (Practice) Terence Ho, also from SUSS, added that the change is meant to retain experienced workers and improve workforce quality.
