SINGAPORE – Foreign-owned companies, which make up 20 per cent of firms in Singapore, employ 60 per cent of locals in high-paying jobs, according to Ministry of Manpower (MOM) data released on Sept 17.

The Straits Times reported that these firms, with less than 50 per cent local equity, provide jobs for nearly a third of employed residents, defined as Singaporean citizens or permanent residents. They also create opportunities for local small and medium-sized enterprises, MOM noted.

According to the news report the data revealed that foreign-owned companies play a crucial role in providing well-paying jobs, with a significant portion of Singaporeans earning more than S$12,500 monthly in such firms.

MOM’s director of manpower research, Ang Boon Heng told the Singapore daily that the release of this data underscores the importance of attracting foreign investments, as they complement the local workforce by offering high-quality jobs.

Despite a rise in retrenchments in the second quarter of 2024, the unemployment rate improved. The re-entry rate for retrenched workers within six months, however, dropped to 55 per cent, down from 59.4 per cent in the previous quarter.

Unemployment rates fell across the board, with the seasonally adjusted rate for residents at 2.7 per cent in June, down from 3 per cent in March. Meanwhile, job vacancies increased to 1.67 per unemployed person.

Manpower Minister Tan See Leng highlighted the importance of balancing local and foreign talent to drive economic growth, citing home-grown tech company Acronis as an example of this collaboration.