Ceca does not allow unconditional entry of Indian PMEs: Ong

Debunking falsehoods about the India-Singapore Comprehensive Economic Cooperation Agreement (Ceca), Health Minister Ong Ye Kung yesterday stressed that nothing in the agreement implies that Singapore must unconditionally let in professionals, managers and executives (PMEs) from India.

"Contrary to Progress Singapore Party's (PSP) claim, our ability to impose requirements for immigration and work passes has never been in question in Ceca or any other FTA (free trade agreement) that we have signed," he said in a ministerial statement.

PSP Non-Constituency MP Leong Mun Wai had put up a Facebook post last month saying that economic policies - in particular Ceca - have affected the jobs and livelihoods of Singaporeans.

Mr Ong, who was the deputy chief negotiator for the United States-Singapore FTA, said that Ceca reduces tariff barriers, which makes Singapore goods more competitive in the Indian market.

Partly because of this, bilateral trade between Singapore and India has grown by more than 80 per cent, from $20 billion when Ceca came into force in 2005, to $38 billion in 2019. Singapore's direct investment abroad in India grew from $1.3 billion to $61 billion during the same period.

In 2019, 660 companies from Singapore had investments in India, almost double the number a decade ago. These companies employed 97,000 Singaporeans that year.

Mr Ong also quoted two clauses in Chapter 9 of Ceca on the movement of natural persons, including Clause 9.1.2, which states: "This chapter shall not apply to measures pertaining to citizenship, permanent residence or employment on a permanent basis."

Obligations in Ceca relating to movement of natural persons are highly specific - not broad principles with wide applications, he said.

Citing national treatment (NT) as one such principle, he explained that NT is found in some chapters of FTAs, such as trade in services or investments.

This means that one cannot discriminate against foreign service providers and investors. Regulations and benefits that apply to local firms must apply evenly to foreign-owned ones.

"If immigration had not been carved out, and if the NT principle had been incorporated into Chapter 9 of Ceca, then indeed, Indian workers would have been treated like Singaporeans, and would have had free rein to come to live and work in Singapore," said Mr Ong.

But contrary to what the PSP claims, "there is a strong immigration carve-out, and NT is not found in this chapter of Ceca, nor any other corresponding chapter in the FTAs that Singapore has entered into", he said. Countries that wish to protect certain sectors negotiate exceptions, or sector "carve-outs", in FTAs.

Chapter 9 obliges both countries to process applications for temporary entry with some expedition and a certain degree of transparency, such as informing applicants of outcomes, he said.

Permits issued by Singapore also have to be valid for a certain duration, subject to prevailing work pass conditions being met. This is not unique to Ceca, he observed. Similar commitments exist in other FTAs and are found in the World Trade Organisation (WTO) Agreement signed by 164 parties, including Singapore.

He said that many parties to FTAs also commit not to impose onerous processes and documentation on companies to prove that no suitable locals will take a job before they can hire a foreigner.

This is a common clause in Singapore's FTAs, including with India, Australia, China and the US.

"Companies in Singapore, or any other place, do not hire in this way. The common and best practice is to interview the suitable candidates, consider them fairly, and make a judgment on the best person. These are all market-friendly, widely adopted, reasonable obligations," Mr Ong said.

He rebutted two points of criticism. First, the PSP's claim - that Indian nationals whose professions are among the 127 listed under Annex 9A can freely come to work here for one year - is a "red herring".

The list does not confer any free pass to any Indian nationals, he said. "All foreign PMEs have to meet our work pass conditions in order to work here. The listing shows the types of Indian professionals who may apply to work in Singapore. It does not mean we must approve them."

India requested such a list, similar to what it has in FTAs with South Korea and Japan, he said.

"In fact, even if they had not listed the professions, their PMEs could still submit work pass applications to work here," he said, adding that these are evaluated based on current criteria.

Second, there have been claims that intra-corporate transferees (ICTs) from India can freely enter Singapore to work.

This is untrue, said Mr Ong, as ICTs also have to meet Singapore's work pass qualifying criteria.

He said every country holds the view that there cannot be unfettered movement of people, as this would create social unrest and public uproar. "Governments must retain the ability to impose immigration and border controls, and FTAs cannot undermine that."

Thus, in all FTAs and WTO agreements, immigration powers are strongly and prominently preserved and protected, he said. "I hope we can put a stop to all this misinformation about our FTAs in general, and Ceca in particular."