Publications

General

Singapore is probably the most Westernized country in Asia. The islands economy grew steadily over the past two years: 5.7% in 2005 and 7.9% in 2006. In 2007, its economy is expected to grow at 6%, due mainly to strong external demand and closer links with the global economy.

Singapore has well-developed employment laws and highly stable labor relations. The tripartite relationship between the government, employers and labor is extremely strong. Labor strikes are extremely rare. The island has a strong legal system and a strong reputation for being largely corruption-free.

Consisting mainly of service and tertiary industries, Singapore has, over the past several years, been trying to inject creativity within its school curriculum and among its population. It also hopes to find new economic niches in such areas as biotechnology and nanotechnology.

Wages and Compensation

Singapore has no minimum wage law, but most companies follow the guidelines issued by the National Wages Council (NWC). The body is comprised of union representatives, government officials and employers.

The NWC recently issued its guidelines for 2007/2008. The guidelines called on employers to give workers pay increases, even as productivity in Singapore had fallen slightly. Wages grew by 3.5% in 2006, lower than 2005s 3.8%. Labor productivity, however, grew by only 1.2%, a dip as compared to 2.1% in 2005.

The NWC also urged employers to ensure that built-in wage increases should continue to be sustainable in the long run. In cases where a built-in wage increase is not possible, companies were urged to moderate the increases, and give employees variable bonuses that are based on performance.

Even though bonuses are not required by law, they are commonly given at the end of the year. They are comprised of two components, the Annual Wage Supplement, and performance-based bonuses. The former is more commonly known as the 13th month bonus and is usually paid during Chinese New Year. The latter is based on performance and can be paid at various times throughout the year.

Central Provident Fund (CPF)

The CPF is a central institution and pillar in Singapore. Apart from setting aside enough funds for retirement, the CPF also allows Singaporeans to use the funds to purchase housing, pay their medical expenses, and even fund their educational and investment needs. Funds can be withdrawn at the age of 62, but this withdrawal age will eventually be raised to 67. Employers contribute between 3.5 and 14% while employees contribute an additional 5 to 20%.

One important aspect of the CPF is its health component. Known as Medisave, it requires mandatory contributions. It can be used to pay for hospitalization, surgery and other outpatient services. Even if other funds are withdrawn upon retirement, S$27,500 (about $18,193) must still be kept in the Medisave account.

Singaporeans who find Medisave insufficient in meeting their medical expenses can also turn to Medishield. Medishield is an optional additional medical insurance that provides coverage for long-term illnesses. Monthly premiums are based on age and can either be paid in cash or through withdrawals from Medisave accounts. Further options are also available for coverage of spouse and dependents.

Foreign Employees in Singapore

All foreigners working in Singapore must register with the Ministry of Manpower. They can apply for either the P, Q or S visas. The P category requires certain skills and professional qualifications and is catered for executives, managers and professionals. The Q category also requires some specialized skills but has lower income requirements. The S category is generally for those with less education or specialized skills.

Personalized Employment Pass Implemented on January 1, 2007, this Pass enables foreigners to switch jobs in Singapore without applying for a new permit. Valid for 5 years at a time, the Pass allows an employees spouse and children to be included on a single permit. Even if the employee is out of a job, he or she can still legally remain in Singapore for 6 months. To be eligible for this Pass, employees need to earn only US$19,000 annually, or have held a P or Q passes for at least two or five years respectively. Graduates from Singapore universities who have had a Q pass for at least two years are also eligible.

Hiring Trends

Singaporeans are generally known to be diligent and hardworking. Most prefer to work for bigger or better-known local or foreign companies. Generally, they are less entrepreneurial than Taiwanese or Hong Kong people. Over the last few years, many Singaporeans have also placed greater emphasis on a balance between work and leisure.

Due to Singapores position as a regional hub in Asia, the demand for HR professionals has remained strong. In order to meet this increasing demand, there has been a greater level of outsourcing in recent years.

Singapore is also well known for its constant emphasis on skills development and upgrading. Apart from government organized upgrading courses, there are also a wide range of skills development courses organized either by ethnic self-help groups or groups at the community level. Singaporeans have often been exhorted to constantly upgrade themselves in order to remain competitive, a challenge which they take seriously.

Recruiting Strategies

Newspapers This is still an important avenue that many job seekers turn to when looking for jobs. Most jobs are advertised in the countrys major English daily, The Straits Times, and to a lesser extent the major Chinese daily the Lianhe Zaobao. The Straits Times usually has a substantive job section in its Friday and Saturday editions.

When advertising in Singapore, it is important to state information such as language requirements and residency status. The former is necessary as there are four major official languages in Singapore Malay, Tamil, Chinese and English. The latter is helpful in making it clear if permanent residency holders and visa holders are eligible.

Websites Some of the popular recruiting websites in Singapore include www.asia1.com, www.st701.com, www.singaporejobsonline.com and www.jobcyclone.com

Campus Recruiting This is a popular approach when recruiting for entry-level positions. Major universities in Singapore are the National University of Singapore, Nanyang Technological University, and the Singapore Management University.

Retention in Singapore

Last year, more than 175,000 jobs were created in Singapore. This is one of the highest job creation rates per capita in the world. Yet job turnover has increased recently. The main reasons for the high turnover are due to the following three factors.

The first is unsatisfactory boss-employee relationships. According to a recent study, half of those who had resigned in 2006 had done so citing poor relationships with their bosses. The second is the lack of opportunity to pick up new skills. Singaporeans are generally keen to better themselves professionally. Many would not hesitate to leave for greener pastures if they felt that they were not learning new skills or were stagnating at their jobs. The third is limited opportunity for advancement. According to another survey, opportunities for further advancement is the top consideration that graduates cite when looking for a job. Overseas postings are also very much sought after and appreciated.

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