Don''t bank on reversal of foreigner pay increase, says Singapore minister
The senior minister of Singapore has warned that the city state is unlikely to reverse its recent decision to impose a national levy increase on the pay of foreign workers.
Goh Chok Tong, who is also the chairman of the Monetary Authority of Singapore, told a meeting of the Council of the Singapore Chinese Chamber of Commerce and Industry this week that the region continues to be keen to reduce its reliance on talent from overseas.
In response to beliefs from some quarters that the Foreign Worker Levy will be dropped if economic growth slows, he said: "Don't bank on it. I would like to reiterate here that the government is determined to reduce the dependency on foreign labour and raise the productivity and incomes of Singaporeans."
Following changes announced last week, from July 1st 2011, holders of the Employment Pass - typically highly-skilled workers such as those with finance jobs in Singapore - or the S pass, for mid-skilled employees, will be subject to a salary threshold increase.
Mr Goh went on to predict continuing economic prosperity for Singapore, explaining he sees growth of four to six per cent this year.