New rules cool interest in entry-level foreigners
But higher salary minimum could cause labour crunch for some sectors
Published on Sep 25, 2013 7:44 AM
The lukewarm interest shown by many companies in entry-level foreign professionals is likely to cool even further, when they have to pay them higher salaries starting from next year.
Employers told The Straits Times yesterday that the new minimum salary, which will rise from $3,000 to $3,300 in January, will make them think twice.
"For a $3,300 pay, it makes more sense to hire a Singaporean fresh graduate than a foreigner. It is more likely that locals will stay on in Singapore and with the firm," said Rikvin recruitment consultancy manager Satish Bakhda.
The Ministry of Manpower (MOM) announced on Monday the new salary benchmark alongside a framework to make firms consider Singaporeans first for professional, managerial and executive jobs before hiring foreigners.
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