Announced by the Manpower Ministry on August 29, the Overseas Networks & Expertise Pass aims to bolster Singapore’s status as a global talent hub.
SINGAPORE: Experts assert that the newly introduced Overseas Networks & Expertise Pass is a strategic move to draw exceptional talent in specialized fields to Singapore. This initiative was unveiled by the Ministry of Manpower (MOM) on Monday (August 29) and permits high-earning professionals and distinguished achievers to reside in Singapore without the prerequisite of securing local employment.
Mr. Nilay Khandelwal, managing director at Michael Page Singapore, highlighted the pressing need for talent at senior levels, noting that this employment pass appears targeted at attracting niche expertise. “Investing in Singapore as a market allows startups or leading organizations to relocate key personnel from their headquarters or to bring in co-founders or founders from other regions,” he explained.
This change is expected to significantly enhance the ease of conducting business in the city-state. “The goal is to attract top-tier individuals from diverse backgrounds, solidifying Singapore’s role as a global talent center,” he added.
To qualify for the Overseas Networks & Expertise Pass, candidates must meet a minimum salary requirement of S$30,000 per month or demonstrate “exceptional achievements” in their respective domains, which may encompass arts, sciences, academia, or sports.
Overseas applicants are required to show that they hold a leading position within an established company that has either a market capitalization of at least US$500 million or annual revenues of US$200 million. The pass provides more flexibility than current work permits, allowing holders to launch, manage, and work for multiple companies in Singapore simultaneously. It boasts an extended validity of five years, enabling individuals to sponsor dependents to live here, while their spouses can work with a letter of consent.
During the announcement of this new pass and modifications to the employment pass framework, Manpower Minister Tan See Leng remarked, “We are now in an era where businesses pursue talent just as talent seeks out businesses. Both are in search of safe and stable environments for investment, living, and working, and Singapore offers that.”
In addition to the new work pass, MOM will extend the duration of work passes for experienced tech professionals with in-demand skills to five years, starting September 1, 2023. Additionally, MOM aims to enhance responsiveness to business needs by reducing the processing time for employment passes (EPs) and cutting the Fair Consideration Framework job advertisement period from 28 days to 14 days.
GLOBAL COMPETITION FOR TALENT
Both Dr. Tan and Prime Minister Lee Hsien Loong have stated that other nations are vying for their share of global talent, and Singapore must remain competitive. Countries like the United Arab Emirates offer similar or more advantageous conditions for talent relocation, such as a Golden Visa for professionals in medicine, science, technology, and arts, which lasts from five to ten years. The UK provides a Global Talent Visa with a five-year term.
Ms. Jaya Dass, managing director of Permanent Recruitment in Asia Pacific at Randstad, emphasized that every nation is trying to attract the same pool of talent, particularly those capable of leading and driving change in a competitive market.
“The Overseas Networks & Expertise Pass stands out as a unique work permit that grants greater flexibility and options to expatriates seeking long-term living and working opportunities in Singapore,” she stated. “This announcement signals Singapore’s commitment to maintaining its status as a global talent hub in ASEAN and beyond.”
In a statement, the British Chamber of Commerce echoed this sentiment, affirming that the focus on eliminating barriers for top-tier talent and the long-term approach to work permits is a clear indication of Singapore’s confidence in becoming a contender for global and regional talent hubs.
SECTORS THAT WILL BENEFIT
Ms. Dass believes sectors undergoing significant transformation or driving digital and green initiatives will require “experienced interim leaders.” “These positions tend to be temporary, as their skills and experiences are often needed during various phases of change,” she remarked.
Industries poised to benefit from this talent pool include banking, financial services, fintech, technology, manufacturing, and life sciences. This proactive approach lays the groundwork for future workforce planning.
She noted that certain business sectors, like green transformation and sustainability, will continue to need foreign expertise to bridge knowledge gaps. However, the changes may not alleviate the current workforce shortage in Singapore’s middle-level positions.
The work pass reforms are expected to give startups and tech companies an advantage, according to Ms. Florence Neo, CEO of the Action Community for Entrepreneurship, Singapore’s national trade association for startups.
“Talent acquisition and retention are pressing concerns in the startup ecosystem, as startups often struggle to compete with larger corporations for skilled individuals,” she remarked. “We welcome the improved processing times for all EP applications, as well as the five-year duration for experienced tech professionals.”
She added that integrating foreign talent with Singapore’s existing workforce is crucial. “It’s not a binary choice; both sides can learn and benefit from each other,” she said. “In the long run, this will lead to the creation of more quality jobs and opportunities for locals.”
SAFEGUARDS FOR LOCAL WORKERS
However, some experts caution that there should be mechanisms in place to evaluate the outcomes of attracting elite talent to Singapore. “Will these individuals eventually settle here, establish families, create jobs, and share their skills? Or will they merely spend a few years here before leaving?” questioned Ms. Angela Kuek, director at Meyer Consulting.
National Trades Union Congress Assistant Secretary-General Patrick Tay stressed the need for safeguards to ensure fair job opportunities for Singaporeans and to maintain a strong local workforce.
He recognized that top talent in deep tech and specialized science/research roles can help mentor local talent. Still, he called for clearer definitions of what constitutes top talent and measures to facilitate knowledge transfer from foreign professionals to Singaporeans.
“I trust that the government will provide clarity on the definition of top talent, potentially by sharing a list of reputable companies that employ such individuals for added accountability,” he stated. “It’s vital to ensure that foreign experts complement and fill skill gaps for Singaporeans.”
Ultimately, he acknowledged that Singapore faces a local talent shortage in specific sectors and must explore ways to develop its workforce to remain competitive on the international stage.
