MoM unveils flexible foreign worker ratios for innovative local firms

To help SMEs deal with restructuring.

Innovative firms will now be able to get a little wiggle room when it comes to dealing with the country's strict manpower curbs.

Under the new Lean Enterprise Development (LED) Scheme, the Ministry of Manpower will exercise some temporary manpower policy adjustment for select Small and Medium Enterprises (SMEs).

In order to qualify for the scheme, SMEs need to submit proposals that will help firms become more productive despite the manpower crunch

The proposals could include initiatives that will allow SMEs to cut down on the number of foreign workers required, generate new types of jobs among established industries, and transfer advanced skills to the local workforce.

The transitional adjustment to be granted by MOM will be tailored to the specific needs of the transformational projects.

For instance, the MoM might allow companies to cut down on the number of Work Permit Holders (WPHs) without affecting their existing quota for S Pass Holders.

The MoM could also let companies have temporary foreign workers while recruiting and training locals to take on better jobs when the new business models have stabilised.

Priority will be given to projects which have the potential to be scaled up to create transformational change for their respective industries. Proposals which involve groups of companies and / or are endorsed by the relevant industry association or union will also be given priority.

The LED Scheme will take effect from 1 Oct 2015.

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