25% of US firms set to move operations out of Singapore

An increase from 12% last year as manpower measures bite.

According to AmCham’s 2013 Manpower Survey Results, over the past few years, the Ministry of Manpower (MOM) has continued to modify its policies related to foreign manpower in an effort to increase productivity and decrease the reliance on low-wage foreign labor.

Relocation of Operations

In the survey, 12% of respondents indicated that their company has already moved some operations out of Singapore in response to the recent changes in foreign worker regulations, up from 5% in 2012. When asked if their company was considering relocation of operations out of Singapore, 25% of respondents answered “Yes,” up from 16% in 2012.

The Fair Consideration Framework

47% of respondents indicated that the Fair Consideration Framework and the increase in the minimum salary threshold for EPs will have minimal or no impact on their ability to conduct operations. Those that said these policies could affect their operations are concerned about delays in the hiring process and internal transfer issues.

The Self-Assessment Tool (SAT)

In an effort to help companies adjust to the recent changes in work pass regulations, MOM created an online “Self-Assessment Tool” that allows employers to determine work pass eligibility for job applicants.

MOM strongly recommends that companies use this tool before interviewing candidates in order to determine their work pass eligibility. However, 18% of survey respondents said that they had not used this tool. The Fair Consideration Framework

The Self-Assessment Tool (SAT)

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