Singapore is pulling out all the stops to attract international talent. It may stem worker shortages in the short-term but there are challenges in the longer term, mainly political and social risks from rising anti-foreigner sentiment.
As part of its post-pandemic efforts, Asian financial hub Singapore is stepping up its drive to attract global talent across industries with new visa programs, targeted policies, and expanded budgets.
Earlier this month, it launched its Overseas Networks and Expertise (ONE) pass which targets high-end workers with a minimum salary of S$30,000 ($21,300). And just last week, the Monetary Authority of Singapore (MAS) and Finance Minister Lawrence Wong announced the city-state’s «Financial Services Industry Transformation Map (ITM) 2025» which aims to create 20,000 new jobs in the sector over a five-year period.
Job-specific policies aside, Singapore also repealed a colonial-era ban on gay sex last month which could help lure even more international workers.
Global Talent Required
Singapore authorities have repeatedly underlined the necessity for the city-state to be globally connected and attract foreign talent.
During a budget speech in March, Wong, who is also the Deputy Prime Minister, underlined that Singapore must avoid succumbing to anti-foreigner sentiment and that global connectivity is not only not optional but also «essential» and «even existential».
In May, MAS managing director Ravi Menon reiterated the view in a forum and warned that a «Singaporean only» approach would be fatal for the city-state’s health as a global financial center as the sector’s rate of job creation outpaces the pool of local talent. He also noted that more than 3,000 Singapore citizens held senior financial roles in 2020, up 80 percent compared to 2016.
Balancing Act
While sectors like finance stand to benefit from a more open Singapore that has greater accessibility to the global talent pool, there are potential risks, most notably the trade-off related to voter sentiment.
During the 2020 elections, recruitment of foreign workers was a hot topic that was further exacerbated by the pandemic. According to analytics firm Meltwater, it was the third most-viewed issue on social media behind pensions and the cost of living.
A significant driver behind Singapore’s consistent pro-business stance is the support of the People’s Action Party (PAP) which has been in power since independence in 1965. If effectively challenged – eight of the 10 opposition parties advocated policy reform favoring local hiring – the PAP risks being replaced and the city-state’s path towards being a leading financial hub altered.
Youth Exodus
And in the longer term, the ratio of high-end jobs held by foreign workers could rise even faster as the local pool shrinks.
According to a recent research report by human resources consultant ADP, more than five out of 10 Singaporean Gen Z workers – individuals aged between 18 and 34 – are planning or considering relocating to work in another country.
«[I]t is worth noting that these employees began their careers during the pandemic and saw reduced opportunities and disruptions,» said Yvonne Teo, ADP’s APAC vice president of human resources.
«Companies should consider how to retain talent by providing opportunities for growth and career advancement. For employees thinking of relocation, companies can consider exchange programs in overseas offices, stretch assignments, and department rotation. This not only benefits the company from a retention standpoint but also encourages new and different ideas from the cross-culture young talent posted overseas.»
Hub Rivals
As expected, other hubs are not resting on their laurels with the UK, Australia, Malaysia, Thailand, and other markets also pushing talent with recruitment-linked policies and immigration programs.
The most notable regional rival that has lost talent to Singapore is Hong Kong which has been rocked in recent years by political unrest and a persistent zero-Covid policy. According to search firm Robert Walters, more than 718 professionals moved from Hong Kong to Singapore in 2021.
Robert Walters estimates that Singapore is home to around 250,000 financial services professionals with 21,8000 new vacancies last year – a 76 percent year-on-year increase and the highest level seen since 2015.
