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More firms turn to non-traditional foreign hires, but SMEs say cost pressures remain

LaksaNews

Myth
Member
SINGAPORE: More Singapore firms are exploring foreign hires from non-traditional source (NTS) countries, after the Ministry of Manpower (MOM) expanded its list of eligible occupations and nationalities in recent months.

Since September 2023, companies in the manufacturing and services sectors have been allowed to hire work permit holders from countries including Myanmar, Thailand and Sri Lanka for a restricted set of jobs.

These range from sheet metal workers to hotel housekeepers and porters.

Interest in the initiative has grown, though industry players say uptake remains cautious.

Mr Jim Wee, director of employment agency Nala Employment, said his firm has seen a 30 per cent increase in enquiries this year compared with last year, following the expansion of both source countries and approved occupations.

In June this year, Bhutan, Cambodia and Laos were added to the list of approved NTS countries.

Additional roles, such as heavy vehicle drivers and manufacturing operator positions, were included from September.

Mr Wee said that his agency has placed about 80 NTS workers across various firms since the scheme was introduced.

SMALL SHARE OF OVERALL WORKFORCE​


According to MOM data, there were about 17,000 NTS work permit holders as of June this year. That makes up less than 2 per cent of Singapore’s total work permit population of about 1.18 million.

Companies typically turn to NTS hiring when they struggle to fill specific roles locally, particularly those involving shift work or physically demanding duties, Mr Wee said.

However, most employers still prioritise hiring locals and permanent residents, he added, with NTS serving as a supplementary workforce.

“There’s (been) an increase in interest over the past one to two years after the announcement of NTS occupation list … (but) the interest has been measured and cautious, rather than a sudden surge,” he added.

Employers also tend to take time to familiarise themselves with workers’ skill sets, language abilities and cultural backgrounds, particularly those from newly added source countries, Mr Wee noted.

Hiring under the NTS scheme is subject to strict conditions.

For example, NTS work permit holders are capped at 8 per cent of a company’s total workforce.

Employers must also pay a fixed minimum salary of S$2,000 (US$1,560). This is to safeguard local wages and ensure that higher-skilled or more experienced workers are considered, MOM previously said.

“With the salary range of S$2,000, maybe for the hotel industry, they might (even) be able to hire local staff,” Mr Wee added.

nts_2.png

Manufacturing roles such as welders are among the approved jobs for workers from non-traditional sources.

WHO CAN FIRMS HIRE UNDER THE NTS SCHEME?​


MOM’s non-traditional sources (NTS) occupation list was introduced in September 2023 to allow firms in the manufacturing and services sectors to retain and hire higher-skilled non-PMETs (professionals, managers, executives and technicians), including those affected by higher S Pass qualifying salary requirements.

Singapore’s S Pass salary threshold was most recently raised for new applications from Sept 1, 2025.

Under the scheme, companies may hire work permit holders from the following countries:

  • Bangladesh
  • Bhutan
  • Cambodia
  • India
  • Laos
  • Myanmar
  • Philippines
  • Sri Lanka
  • Thailand

These workers are limited to approved occupations, including:

  • Housekeepers and porters in licensed hotels
  • Food processing workers
  • Cooks
  • Heavy vehicle drivers

And manufacturing roles, such as:

  • Assemblers
  • Machine operators
  • Metal moulders and coremakers
  • Quality checkers and testers
  • Riggers and cable splicers
  • Sheet metal workers
  • Structural metal preparers and erectors
  • Welders and flame cutters

Hiring is subject to quotas and minimum salary requirements.

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Related:​


SMALL FIRMS WELCOME EXPANSION BUT SEEK BROADER SUPPORT​


Business groups say the expanded list has provided some relief for small- and medium-sized enterprises (SMEs), particularly in labour-intensive sectors such as food and beverage and logistics.

However, they stress that there are deeper structural issues facing SMEs beyond hiring woes.

“SMEs feel that their margins have been squeezed with limited pricing power. This is due to the rise in rentals, utilities, logistics and operational costs,” said Ms Jayanthi Manian, board director at the Singapore Indian Chamber of Commerce and Industry.

She added that while many SMEs have already adopted basic digital tools, productivity gains from such tools remain elusive.

Ms Manian said the chamber’s wish list for Budget 2026 includes more targeted cost relief, as well as grants that go beyond basic digitalisation to include areas such as responsible artificial intelligence deployment.

Such measures, she said, would better position SMEs to navigate an increasingly uncertain global environment.

Related:​



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