As Singapore heads into GE2025, the topic of foreign talent remains front and centre. Not because parties disagree on its importance, but because they differ on how to manage it in a way that ensures fairness, opportunity, and long-term resilience for Singaporeans.
All major political parties — the People’s Action Party (PAP), Workers’ Party (WP), and Progress Singapore Party (PSP) — agree that foreign professionals are essential in keeping Singapore globally competitive. Where they diverge is in the safeguards, data transparency, and pace of change.
Today, foreign-owned firms make up around 20% of firms here and employ 60% of Singapore residents in high-earning jobs that pay over $12,500 in gross monthly salary.
A Calibrated Shift in Foreign Workforce Policy
The PAP has long emphasised that Singapore’s economic survival depends on staying open to global talent. But in recent years, it has moved decisively to fine-tune this openness — adopting a more calibrated approach that directly addresses public concerns over competition and fairness.
A key policy introduced in 2023 is the Complementarity Assessment Framework (COMPASS). It assesses Employment Pass (EP) applications not only based on an applicant’s qualifications but also on how the hiring company contributes to Singapore’s broader economic goals. Firms hiring in shortage occupations or participating in innovation and internationalisation efforts receive bonus points — signalling a shift towards strategic, high-quality manpower inflows.
Salary thresholds for EP and S Pass holders have also been raised, pegged to the top one-third of local wages in similar roles. This ensures that foreign professionals brought in are highly skilled — not simply lower-cost alternatives — addressing concerns about wage suppression for locals.
At the same time, the Fair Consideration Framework (FCF) is being strengthened through legislation, giving legal backing to practices that require firms to advertise job openings to locals and consider them fairly before hiring foreigners.
These moves reflect a clear intent: to uphold meritocracy while reinforcing fairness, ensuring that foreign workers complement, rather than compete directly with, local talent.
Investing in Singaporeans
Beyond tightening entry requirements, the PAP’s long-term strategy is to invest deeply in Singaporean workers so they can compete and lead at a global level.
Initiatives like SkillsFuture Level-Up and overseas exposure opportunities are designed to give Singaporeans an edge in securing senior roles in international firms. This addresses a common concern that foreign professionals tend to dominate leadership tracks in global companies.
By supporting locals to gain both skills and international experience, the government is working to build a globally competent core of Singaporean professionals — not just for today’s job market, but for the evolving needs of tomorrow’s economy.
Opposition Views and PAP’s Alignment
The Workers’ Party has called for stronger accountability in hiring practices, such as tying EP renewals to evidence of skills transfer to locals. The PAP’s COMPASS framework already nudges companies in this direction by rewarding those that invest in local talent development — a move that, while not identical, addresses similar goals.
WP and PSP have also pushed for greater transparency, such as breaking down job data by citizenship and tracking underemployment. While the government has traditionally resisted such granularity — citing concerns about social cohesion — it recently disclosed that 63% of PMET job growth from 2014 to 2024 went to locally born citizens. This marks a notable shift toward data openness, likely aimed at reinforcing public trust.
The PSP has also proposed more stringent measures, including diversity quotas by nationality and levies on EP holders. These are aimed at levelling the cost gap between locals and foreign hires, especially since locals and their employers contribute to CPF. While the government has not taken this route, its emphasis on raising salary benchmarks and promoting fair hiring indirectly tackles the same cost imbalance — but in a more market-driven way.
Navigating Singapore’s Unique Constraints
At its core, this debate is shaped by Singapore’s unique context. As a small, ageing, high-cost economy, it has limited room to grow in traditional ways. Not every job can — or should — be retained onshore. Instead, the goal is to anchor high-value industries here and equip Singaporeans to lead in them.
The PAP’s approach recognises that openness and protection are not mutually exclusive. Rather, the challenge is in managing this balance — tightening where needed, but keeping pathways open for industries that drive growth and innovation.
As Prime Minister Lawrence Wong has affirmed, Singapore will remain open, but not at the cost of national identity or local opportunity. Citizens, he stressed, will never become a minority in their own country.
The Voter’s Choice
In this election, the question isn’t whether Singapore should welcome foreign talent. The consensus is clear. What’s at stake is how to manage that openness smartly — in a way that supports Singaporeans, sustains growth, and safeguards cohesion.
The PAP’s evolving strategy suggests an answer: calibrate, not close off. Voters will now decide if this path strikes the right balance for the years ahead.
