Reduction of the Foreign Worker Ratio in the Services Sector: How will this affect your organization? 

On 18 February 2019, it was announced in the Singapore Budget 2019 that the foreign worker ratio in the services sector will be lowered. The reason for this change is to reduce Singapore’s dependence on foreign labour in the services sector. The ratio for the other sectors (construction, manufacturing, marine shipyard and process) will not be changed. 

Accordingly, employers will need to be even more mindful of the number of foreigners they hire compared to locals. The tightening of foreign labour in favour of a local Singaporean core has been in place since 2014 and we do not foresee any change in policy anytime soon. As such, employers may wish to explore the methods we have suggested in this alert to ensure that their population of foreign labour does not become disproportionately large. 

For more information, you can download the full alert here.

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