Dear friends,
Deputy Prime Minister Gan Kim Yong has finally stated plainly what many Singaporeans have felt for years: economic growth does not automatically translate into more good jobs for Singaporeans.
We have seen this anxiety before. As far back as 2011, Singaporeans turned up in large numbers at Hong Lim Park to voice concern that rapid inflows of foreign labour were coinciding with job insecurity and wage pressure for locals.
Today, the situation is still not reassuring for many young people entering the workforce. Recent graduate employment outcomes—especially full-time, permanent outcomes—have remained a source of worry. If we want to be honest about the problem, we must stop treating it as a temporary blip or blaming “AI” as the convenient explanation. The cracks have been visible for well over a decade.
There are structural issues at play. One is whether Singaporeans are competing on an even playing field against foreign PMETs.
In the past, foreign PMETs were often justified as a way to transfer skills and groom Singaporeans to lead industries. But today, many Singaporeans feel the competition has become uneven—particularly when employers can fill roles with foreigners without facing the same cost structure that comes with hiring and retaining locals.
Unlike Work Permit and S Pass holders, Employment Pass holders are not governed by fixed sector quotas, and employers do not pay levies in the same way. At the same time, hiring a local typically comes with additional employer CPF contributions. Over time, these incentives can skew employer decisions—especially for fresh graduates and mid-career Singaporeans who are already facing intense competition.
Let us be clear: it is understandable that foreigners seek better opportunities here, and Singapore does need top global talent to grow our industries. But this cannot come at the expense of Singaporeans, especially young graduates and mid-career workers trying to keep their footing.
That is why the SDA, in our 2025 Manifesto, has called for a tiered levy on Employment Pass holders, calibrated by salary band and sector needs. The objective is simple: to nudge companies to hire and train Singaporeans into high-skilled and leadership roles, and to level the playing field for mid-career locals who are too often seen as “expensive” to hire.
Jobs pressure has multiple causes. But why not fix what we can fix – especially when it is within the government’s ability to do so? In the end, this is about political will. We urge the government to design a system with Singaporeans at heart.
Desmond Lim
Chairman
Singapore Democratic Alliance
