The cutting of the quota to affect companies in the services sector
To make Singapore firms rely even less on foreign workers, the government will reduce the hiring quota for the services sector, announced finance minister Heng Swee Keat during the Budget 2019 speech today (18 February).
The proportion of foreign workers a firm can employ, or the Dependency Ratio Ceiling (DRC), will be cut from 40% to 38% by 1 January 2020, and a further 35% by January 2021.
For S Pass workers, the quota will be cut from 15% to 13% on 1 January 2020. It will be reduced further to 10% the following year.
However, firms can bring in foreign workers with specialised skills on a case-by-case basis, explained minister Heng. This is provided they still face a shortage after having fairly considered Singaporeans.
