Beautiful Virgin Islands

Monday, Aug 04, 2025

Singapore seeks to cut number of expatriates as recession bites

Singapore seeks to cut number of expatriates as recession bites

Asian financial hub tightens regulations on employing foreign professionals
International businesses in Singapore are facing increasing barriers to hiring expatriates as the government seeks to assuage domestic political concerns over soaring unemployment in the Asian financial centre.

Despite increasing interest among global companies in using Singapore as an alternative regional base to Hong Kong, authorities in Singapore last week tightened criteria for hiring foreign professionals.

The government raised the cost of hiring expatriates by increasing the minimum salary needed to qualify for an Employment Pass, or work permit for foreign professionals, by 15 per cent to S$4,500 (US$3,300) a month. The government for the first time also introduced a sector-specific higher qualifying salary of at least S$5,000 a month for those working in finance and double that for candidates aged in their forties.

The new rules, the second time requirements have been updated this year, would affect businesses trying to hire new foreign employees as well as renewing existing visas, said Ravi Chandran, assistant dean of undergraduate studies at the National University of Singapore Business School. Even for those who meet the criteria, there is often “no guarantee” of obtaining a work pass, he added.

The new regulations come as some fund managers and traders are looking for a new base for their headquarters in Asia after Beijing introduced national security legislation for Hong Kong that critics argue threatens to undermine the rule of law in the city.

Singapore, long a choice destination for foreigners in Asia because of its low taxes and high living standards, has been restricting the rules for employment passes in recent years to encourage businesses to consider locals first. Singapore also has quotas to ensure businesses strike a balance between the local and foreign employees.

That drive has been exacerbated this year with the unemployment rate among local Singaporeans and permanent residents increasing from 3.3 per cent to nearly 4 per cent in the second quarter, its highest in more than a decade.

Singapore fell into recession for the first time since the global financial crisis in the second quarter after the city-state imposed a lockdown to battle coronavirus. The economy shrank by 12.6 per cent year on year, the largest drop since independence in 1965. 

The government said the changes to employment pass rules would help companies “ensure a strong Singaporean core” while the city remained an open hub for international business.

The changes were “obviously good” for comparable local talent, said Damien Joseph, an associate professor at Nanyang Technological University’s Nanyang Business School. There was increasing discontent on social media platforms among Singaporeans “unhappy with hiring policies” in recent months, he said.

Earlier this month, nearly 50 employers, mostly in the financial and professional services sectors, were added to a government watchlist of companies with suspected discriminatory hiring practices.

Protecting Singapore workers’ interests was a theme of the national election held in July. The manifesto of the opposition Workers’ party, which won a record number of seats, included proposals to curb the number of employment passes granted. 

One partner at a top international law firm with a large number of expat employees in the city said the changes were not expected to have much impact on the top level in areas such as banking and law. 

“This is about perception, giving the perception that Singapore is doing more to help locals’ employment prospects,” the partner said. “The flip side to that is it will probably damage international perception of Singapore even if it doesn’t have a big impact.”

TY Shao, a Singapore-based manager at technology and financial services recruitment firm Hudson, said he had already seen an increase in local hiring in response to the pressure. 

“A lot of organisations are trying to avoid having to apply for an EP because there is a real risk it will not be approved,” he said. 

But a large percentage of affected workers would also be foreigners from Malaysia and China working in sectors such as retail or marketing who were paid less, he added.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
OpenAI’s Bold Bet: Teaching AI to Think, Not Just Chat
Tesla Seeks Shareholder Approval for $29 Billion Compensation Package for Elon Musk
Nvidia is cutting prices on its RTX 50-series graphics cards after sales slowed and inventories piled up
Ghislaine Maxwell Transferred to Minimum-Security Prison Amid Ongoing DOJ Discussions
U.S. Tariffs Surge to Highest Levels in Nearly a Century Under Second Trump Term
Matt Taibbi Slams Media for Role in Russiagate Narrative
Pilots Call for Mental Health Support Without Stigma
All Five Trapped Miners Found Dead After El Teniente Mine Collapse
Ong Beng Seng Pleads Guilty in Corruption Case Linked to Former Singapore Transport Minister
BP’s Largest Oil and Gas Find in 25 Years Uncovered Offshore Brazil
Italy Fines Shein One Million Euros for Misleading Sustainability Claims
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
Declassified Annex Links Soros‑Affiliated Officials and Clinton Campaign to ‘Russiagate’ Narrative
UK's Online Safety Law: A Front for Censorship
Nationwide Protests Erupt in Brazil Demanding Presidential Resignation
Parents Abandon Child at Barcelona Airport Over Passport Issue
Mystery Surrounds Death of Brazilian Woman with iPhones Glued to Her Body
Bus Driver Discovers Toddler Hidden in Suitcase in New Zealand
Switzerland Celebrates 734 Years of Independence Amid Global Changes
U.S. Opens Official Investigation into Former Trump Prosecutor Jack Smith
Leaked audio of Canada's new PM Mark Carney admitting the truth about the Net Zero agenda: "We're gonna make a lot of money off of this."
China Enforces Comprehensive Ban on Cryptocurrency Activities
Absolutely 100% Realistic EVO Series Doll by EXDOLL (Chinese Company) used mainly for carnal purposes
World Economic Forum founder Klaus Schwab: "In this new world, we must accept... total transparency. You have to get used to it. You have to behave accordingly. But if you have nothing to hide, you shouldn't be afraid."
Meet Mufti Hamid Patel, head of Office for Standards in Education in Pakistan
George Soros tells the World Economic Forum: "President Trump is a con man and the ultimate narcissist, who wants the world to revolve around him."
Hamas are STARVING the hostages.
Decline in Tourism in Majorca Amidst Ongoing Anti-Tourism Protests
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
Poland Begins Excavation at Dziemiany After New Clue to World War II‑Era Nazi Treasure
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Threatens Canada with Tariffs Over Palestinian State Recognition
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Trump Sues Murdoch in “Heavyweight Bout”: Lawsuit Over Alleged Epstein Letter Sets Stage for Courtroom Showdown
Germany Enters Fiscal Crisis as Cabinet Approves €174 Billion in New Debt
Trump Administration Finalizes Broad Tariff Increases on Global Trade Partners
J.K. Rowling Limits Public Engagements Citing Safety Fears
JD.com Launches €2.2 Billion Bid for German Electronics Retailer Ceconomy
Azerbaijan Proceeds with Plan to Legalise Casinos on Artificial Islands
Former Judge Charged After Drunk Driving Crash Kills Comedian in Brazil
Jeff Bezos hasn’t paid a dollar in taxes for decades. He makes billions and pays $0 in taxes, LEGALLY
China Increases Use of Exit Bans Amid Rising U.S. Tensions
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Procter & Gamble to Raise U.S. Prices to Offset One‑Billion‑Dollar Tariff Cost
House Republicans Move to Defund OECD Over Global Tax Dispute
Botswana Seeks Controlling Stake in De Beers as Anglo American Prepares Exit
Trump Administration Proposes Repeal of Obama‑Era Endangerment Finding, Dismantling Regulatory Basis for CO₂ Emissions Limits
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
A family has been arrested in the UK for displaying the British flag
Mel Gibson refuses to work with Robert De Niro, saying, "Keep that woke clown away from me."
×