Foreign Workforce Quota in Services Sector to be cut

Singapore – It was announced during the Singapore Budget 2019 that there would be a tightening of the Foreign Workforce Quota. The announcement came a year early to give firms enough time to prepare ahead for the change. The Dependency Ratio Ceiling (DRC) will only apply to companies with existing employees that exceed the new limits when they apply for renewals of the permits.

There are also measures in place to assist for a smooth transition until FY2022. In some unique cases, companies can also continue to apply for additional manpower flexibilities.

The Government will adjust the maximum permitted ratio of foreign workers in the Services Sector as follows:

  • The Dependency Ratio Ceiling (DRC) will be reduced
    • From 40% to 38% on 1 January 2020
    • From 38% to 35% on 1 January 2021
  • S Pass Sub-DRC will be reduced
    • From 15% to 13% on 1 January 2020
    • From 13% to 10% on 1 January 2021

Source and for more information, you can visit this site (Refer to C.40-C.48 and Annex C-3): https://www.singaporebudget.gov.sg/budget_2019/budget-speech