SINGAPORE: There are no shifts in employers' hiring preferences between local and foreign workers at the moment, even as hiring intentions have softened amid the Middle East crisis, Manpower Minister Tan See Leng said on Thursday (May 7).
Dr Tan, who is also minister-in-charge of energy and science and technology, was responding to parliamentary questions on the impact that the Middle East crisis is having on hiring prospects.
In particular, Mr Yip Hon Weng (PAP-Yio Chu Kang) had asked whether the Ministry of Manpower (MOM) has observed any shifts in hiring preferences given that some firms are slowing workforce expansion due to cost pressures.
Pointing out that Singapore's resident employment continued to grow in the first quarter of 2026 compared to the same period in 2025, Dr Tan said that for now, hiring preferences have not changed.
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"Our work pass policies also ensure that Singaporeans are given a level playing field against foreign workers, and we do our level best to ensure that our foreign workers here are complementary to our local Singaporean workers," he said.
He pointed to the upcoming increase in qualifying salaries for Employment Pass and S Pass holders, and regular reviews of the "shortage occupation" criteria for Employment Pass applicants.
"We always seek to strike a right balance between ensuring that our businesses have that space, the latitude to continue to grow, while ensuring that our local Singaporean workers and talent continue to also have the trajectory for them to grow as well," said Dr Tan.
While the labour market remains resilient, he noted the proportion of firms intending to hire in the next three months fell to 44.6 per cent in March, from 54.6 per cent in February.
Dr Choo Pei Ling (PAP-Chua Chu Kang) then asked if the government is adapting its workforce planning for "a more persistent state of structural uncertainty, where workers may face overlapping disruptions from trade fragmentation, technological change and sectoral restructuring".
"The answer is a resounding yes," said Dr Tan, adding that the upcoming report of the Economic Strategy Review will cover many of these points.
The review of Singapore's economic blueprint was launched last August, and committees are expected to release their recommendations by mid-2026.
Global energy supply chains have been disrupted by Iran's blockade in the Strait of Hormuz, after the United States and Israel began the war against Iran on Feb 28.
Member of Parliament Liang Eng Hwa (PAP-Bukit Panjang) asked the minister about structural changes to the economy wrought by the conflict, especially the damage dealt to oil and gas infrastructure.
To this, Dr Tan said it was "premature" to make conclusions about the long-term impact, but that the crisis was likely to accelerate structural shifts that are already under way in the global economy.
This refers to supply chain diversification, digitalisation, the adoption of artificial intelligence and the energy transition, he told parliament.
While the crisis will test the resilience of economies, it also creates new opportunities for firms to transform, diversify and deepen their capabilities, he said.
Energy has become an "existential" issue because of the need to power data centres for the compute required for AI.
At the same time, there is an abundance of new discoveries in oil and gas, and developments in green energy sources are accelerating, he said.
He pointed to Prime Minister Lawrence Wong's recent commitment that Singapore will not restrict fuel exports amid the energy crisis.
Mr Wong said this on Apr 10, during a press conference with his Australian counterpart Anthony Albanese who was visiting Singapore.
"Our sense is that many countries are not just thinking about diversification, but they are also moving into a just-in-case mode, rather than just-in-time," said Dr Tan.
"This crisis will test us, and if we are able to prevail, I think it would cement, it would reinforce and consolidate our position as a trusted hub."
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Dr Tan, who is also minister-in-charge of energy and science and technology, was responding to parliamentary questions on the impact that the Middle East crisis is having on hiring prospects.
In particular, Mr Yip Hon Weng (PAP-Yio Chu Kang) had asked whether the Ministry of Manpower (MOM) has observed any shifts in hiring preferences given that some firms are slowing workforce expansion due to cost pressures.
Pointing out that Singapore's resident employment continued to grow in the first quarter of 2026 compared to the same period in 2025, Dr Tan said that for now, hiring preferences have not changed.
CNA Games
Show More Show Less
"Our work pass policies also ensure that Singaporeans are given a level playing field against foreign workers, and we do our level best to ensure that our foreign workers here are complementary to our local Singaporean workers," he said.
He pointed to the upcoming increase in qualifying salaries for Employment Pass and S Pass holders, and regular reviews of the "shortage occupation" criteria for Employment Pass applicants.
"We always seek to strike a right balance between ensuring that our businesses have that space, the latitude to continue to grow, while ensuring that our local Singaporean workers and talent continue to also have the trajectory for them to grow as well," said Dr Tan.
While the labour market remains resilient, he noted the proportion of firms intending to hire in the next three months fell to 44.6 per cent in March, from 54.6 per cent in February.
Dr Choo Pei Ling (PAP-Chua Chu Kang) then asked if the government is adapting its workforce planning for "a more persistent state of structural uncertainty, where workers may face overlapping disruptions from trade fragmentation, technological change and sectoral restructuring".
"The answer is a resounding yes," said Dr Tan, adding that the upcoming report of the Economic Strategy Review will cover many of these points.
The review of Singapore's economic blueprint was launched last August, and committees are expected to release their recommendations by mid-2026.
Related:
STRUCTURAL IMPACT OF CRISIS
Global energy supply chains have been disrupted by Iran's blockade in the Strait of Hormuz, after the United States and Israel began the war against Iran on Feb 28.
Member of Parliament Liang Eng Hwa (PAP-Bukit Panjang) asked the minister about structural changes to the economy wrought by the conflict, especially the damage dealt to oil and gas infrastructure.
To this, Dr Tan said it was "premature" to make conclusions about the long-term impact, but that the crisis was likely to accelerate structural shifts that are already under way in the global economy.
This refers to supply chain diversification, digitalisation, the adoption of artificial intelligence and the energy transition, he told parliament.
While the crisis will test the resilience of economies, it also creates new opportunities for firms to transform, diversify and deepen their capabilities, he said.
Energy has become an "existential" issue because of the need to power data centres for the compute required for AI.
At the same time, there is an abundance of new discoveries in oil and gas, and developments in green energy sources are accelerating, he said.
He pointed to Prime Minister Lawrence Wong's recent commitment that Singapore will not restrict fuel exports amid the energy crisis.
Mr Wong said this on Apr 10, during a press conference with his Australian counterpart Anthony Albanese who was visiting Singapore.
"Our sense is that many countries are not just thinking about diversification, but they are also moving into a just-in-case mode, rather than just-in-time," said Dr Tan.
"This crisis will test us, and if we are able to prevail, I think it would cement, it would reinforce and consolidate our position as a trusted hub."
Continue reading...