SINGAPORE, Dec 15 — Trade associations and businesses welcomed the new Manpower for Strategic Economic Priorities (M-SEP) scheme, but some raised concerns regarding the execution of the scheme and the strict criteria that appear to rule out most small- and medium-sized enterprises (SMEs).

The M-SEP scheme was launched on Tuesday (Dec 13) by Manpower Minister Tan See Leng.

Eligible firms can increase their S Pass and work permit quotas by up to 5 per cent of their base workforce headcount, subject to a cap of 50 foreign workers in total.

For a firm to be eligible, it will have to contribute to Singapore’s economic priorities and commit to hiring and training resident workers.

Mr Toby Koh, managing director of Ademco Security Group, said that the scheme will alleviate the existing manpower crunch.

"The labour market today is very tight, with companies finding it difficult to fill specific roles with local employees,” he said.

"For example, there are not many local engineers who are trained in the field of Internet of Things, drones and robots, which are vital to Ademco. With this scheme, we can look to hire more foreign workers.”

Mr Aslam Sardar, chief executive officer of the Institute for Human Resource Professionals, said that the scheme is timely and will resolve manpower problems in the short run.

"Since businesses globally are getting back to some semblance of normality and with large economies like China gradually opening up, having the flexibility to add additional manpower is welcomed,” said Mr Sardar.

But some trade associations and human resources experts TODAY spoke to said they were concerned whether companies will be able to manage operations after the foreign employees’ work permits expire, since the M-SEP scheme will run for three years.

In addition, eligible firms can temporarily increase their foreign worker quota, or dependency ratio ceiling, for only two years, after which they can apply for renewal.

Strict eligibility criteria

Mr Ang Yuit, vice-president of Association of Small and Medium Enterprises (SMEs), said that the eligibility criteria will rule out most SMEs in Singapore.

"If you look at the criteria, the Ministry of Manpower (MOM) has already stated that only handpicked companies that are considered to be ‘needle movers’ will be eligible,” he said.

"The criteria is very high and typical SMEs, which are the majority of SMEs in Singapore, will not be able to qualify.”

Mr Ang suggested that the eligibility criteria be loosened to include SMEs since they are also experiencing a manpower crunch.

"SMEs are in dire need of manpower because of multiple reasons, such as the effects of Covid-19, and the ‘great resignation’, where many people are changing jobs,” he said.

Mr Sardar pointed out that local workers of eligible companies might resign before they are due for training, which will affect a company’s ability to fulfil the eligibility criteria.

For Mr Koh, he is not sure whether his company, which specialises in cybersecurity, will be eligible for the scheme.

"My one concern is if my company can qualify even though we have been part of a scale-up programme by Enterprise Singapore,” said Mr Koh.

In response to TODAY’s queries on the eligibility criteria, MOM referred TODAY to its website where it spelled out the criteria for eligible firms.

Concerns on implementation, effectiveness of scheme

Some trade associations and HR experts are wondering how the scheme will be implemented and whether companies will prioritise training local workers.

They are also unsure whether the scheme will be effective in tackling the local manpower crunch.

Mr Chia Hock Lai, co-chairman of Blockchain Association Singapore, said: "Since the scheme runs for two years before being reviewed for renewal, some firms might take a shorter view and take advantage of the ease to hire foreigners while not giving full commitment to create training opportunities for Singaporeans.”

Mr Adrian Choo, career strategist and founder of Career Agility International, also said that there would have to be regular monitoring to ensure that companies keep up their end of the bargain to train local employees.

During the launch of the M-SEP scheme, Manpower Minister Tan said that participating companies that do not fulfil the criteria of committing to hiring and training resident workers will not be able to renew their application to the M-SEP scheme.

In addition, government agencies will keep a record of such firms, which will affect their future participation in government-led programmes.

While the scheme is a good initiative to promote training of local workers, Ms Carmen Wee, founder of HR advisory services firm Carmen Wee & Associates, said it does not address existing problems that make companies reliant on foreign labour, such as the local workforce’s lack of skill sets in specific sectors.

Mr Albert Tsui, executive director, advocacy and policy division at Singapore Business Federation (SBF), similarly said that the scheme does not address enduring manpower challenges, but believes it will still help eligible firms in filling manpower gaps.

"SBF welcomes the Government’s move towards supporting specific industry needs that are insufficiently met by existing pass arrangements,” he said.

"This scheme would be welcomed by businesses that require workers with niche skills but are in short supply.” — TODAY