Practical measures to help PMEs to get jobs in Singapore

There is a simple solution that the government should introduce to help PMETs to compete for jobs against foreigners on employment pass.

Levy on employment pass holders

The government should introduce a levy of $800 a month for employment pass holders. They are now levying a levy of about $500 for S-pass holders. A higher levy for employment pass holders is a logical extension of this practice.

I cannot understand why the government policy is to allow employment pass holders to be free of levy. It must be a mistaken view that these are "talents" that needed to be attracted into Singapore.

Currently, the government impose a requirement that the S-pass or E-pass holders should earn above a threshold salary. This requirement can be easily abused. I have heard many examples of the employer declaring a higher salary, to meet this requirement and paying a lower salary to the pass holders, with their agreement. There is no need to set this "minimum salary" for employment pass holders, if the employer has to pay a levy at a sufficiently high level.

If this levy for employment pass holders is implemented, it can apply to new passes that are issued, and to existing passes on their renewal.

Productivity and innovation credits

Currently, the government gives grants to small businesses under the Productivity and Innovation Credit scheme for certain types of expenditure, e.g. purchase of certain types of equipment and services. This scheme is also abused as providers and small businesses make purchases that do not really help to improve their business or productivity, but these purchasers are approved automatically under the PIC scheme.

While the PIC grant should continue, as it gives some help to small businesses, it can be extended to allow small businesses to claim for the employer CPF contributions of citizens employed by them. This will encourage the small businesses to employ citizens and help PMEs to get jobs in competing with foreigners on employment passes.

Tan Kin Lian