Why PSP’s proposed levy of $1,200 will right-tilt jobs towards Singaporeans

NCMP Leong Mun Wai

I’ll tell you why Progress Singapore Party’s NCMP Leong Mun Wai’s suggestion of $1,200 levy for employment pass holders will rebalance PMET jobs in the mid-high salary range towards Singaporeans.

Let’s say you hire a Singaporean in his prime for a job which pays $6,000, the employer’s actual cost for hiring him is $7,020. This is because the employer has to pay 17% CPF for all local employees. This is extra cost for the employer and it invariably disadvantages Singaporean workers who can command such wages.

I mean a business’s primary objective is to maximise profits. In such a circumstance, many businesses may choose a foreigner over a local to save on manpower costs, and this disadvantages the locals.

Even for jobs which are in the $4,500 – $6000 range, when you factor in the CPF contribution, employers would have to pay between $5400 – $7020 to hire a Singaporean. It may make more sense to hire a foreigner as a foreign worker may be able to work longer hours, won’t have to to do reservist duties, etc – and so be less ‘troublesome’ than local workers.

And so, having a levy of $1,200 is fair and may tilt the mid-high range jobs more towards Singaporeans. For the real foreign talent who command top dollars, what is a thousand dollars more when they can create real value for their projects?

The PAP Government said it is worried about the message imposing a levy of $1,200 for employment pass holders will have on Singapore being “an open city connected to the world”. But I think a levy of $1,200 will better rebalance jobs in the mid-high salary range towards Singaporeans.

Governments around the world protect their citizens first. Global citizens and real expats understands this. Real foreign talent will continue to flow into Singapore even with a levy imposition because Singapore generally provides a safe environment for them, our connectivity to the rest of the world, and because we are hubs in so many areas.

The $1,200 levy will right-tilt jobs in certain categories towards Singaporeans and for this reason, I support the PSP’s position on this.


Facebook post by Ravi Philemon.






10 Responses to “Why PSP’s proposed levy of $1,200 will right-tilt jobs towards Singaporeans”

  • No Conscience:

    So why so many are voting PAP? Perhaps they are aiming to strike Mayor Toto every month.

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  • opposition dude:

    Why only $1200? Should be 60% of the salary that the E pass holder is getting mah! Then this will really make the employer think twice about getting a foreigner

    $1200 is nothing for these emplyers lah, got to make them pay loads more for really good foreigners and not those so so type nia.

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  • Wasting money on foreigners:

    Straits Times: Develop vaccines in S’pore and tax those who profited big from Covid-19, say MPs

    A-Star has spent BILLIONS for biomedical research since it was set up many years ago. It employs a lot of highly-paid foreigners as researchers. To date A-Star has NOTHING substantial to show for the BILLIONS it has spent. Why? It just made the resumes of foreigners employed by A-Star look good.

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  • PM LHL screwed Singaporeans:

    Woody Goh abolished CPF for foreigners working in Singapore when he was PM. (This made them up to 17% CHEAPER to employ than Singaporeans.) LHL went further and “opened the gate wide” to foreigners when he became PM (But, as disclosed by Woody Goh during the 2011 GE campaigning, kept quiet about it. Likly because he knew he was screwing Singaporeans. Unions and then Manpowere Minister Lim Swee Say also said nothing.) The result was devastating to Singaporeans. Thousands of Singaporean PMETs lost their job to foreigners. Many wound up driving cabs or for UBER (later GRAB). This loss of jobs is still happening. To make matters worse, when the economic downturn came as a result of the pandemic the PAP refuses to cancel the work visa of foreigners to force them to go home so retrenched Singaporeans can take their job. Singaporeans also got retrenched first they are more “expensive” to employ.

    LHL also allowed the price of HDB flats to more than double since he became PM to “drain” the CPF accounts of Singaporeans. There was (and still is) a massive transfer of wealth (Value) from Singaporeans to the government. Singaporeans gave up their hard-earned savings in their CPF to the government for an over-priced, poor quality, basically depreciating (to ZERO because of the 99-year lease) HDB flat. The government allowed an UNSUSTAINABLE “property bubble” to fully offset the underlying steady depreciation of HDB flats. Lawrence Wong is right when he said HDB flat will depreciate to ZERO for the flat owner. This is not true not for the government because State Land is ALWAYS “FREEHOLD” to the state – it can renew the 99-year lease and sell the land again.

    Without a doubt, PM LHL IS A BIG FAILURE. Singaporeans are worse off since he became PM.

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  • Harder Truths:

    Sorry but this kind of thinking will not work. Most PMET’s brought here are just primary school dropouts with a piece of paper printed from a bogus academic institution who will work at any price, which is much better for them than being beggars or criminals in their own countries.

    The case of that bogus degree holder from JP Morgan, Ramesh is a prime example of criminals bringing in criminals.

    You forget there is an inexhaustible supply of fake degree holders who will take a job at any price. Whatever levy you bring in will be offset by the influx of greater numbers of fake PMET’s imported and their corresponding lower pay packages.

    You also open the gates to employers outsourcing jobs to other countries using virtual technology. I have seen this happen the past year. FT are now in their home countries and working from there as contractors or still in their old jobs. Do they need a levy? No.

    The solution is to STOP the migration and outsourcing simultaneously.
    THAT should be your agenda. You have still not caught up with wha tis happening out there. Do not take the electorate for granted or think we do not know what the opposition needs to do.

    You have misunderstood how the system works. If you want to outwit the FT you need to think like them.

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  • Use of levy:

    Very good idea. Even better if you want the levy to be used as unemployment payments for citizens.

    No point putting the levy straight into the black hole of treasury/reserve, right?

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  • Tremendous:

    Wasting money on foreigners:
    Straits Times: Develop vaccines in S’pore and tax those who profited big from Covid-19, say MPs

    A-Star has spent BILLIONS for biomedical research since it was set up many years ago. It employs a lot of highly-paid foreigners as researchers. To date A-Star has NOTHING substantial to show for the BILLIONS it has spent. Why? It just made the resumes of foreigners employed by A-Star look good.

    This is absolutely right. For many years, billions of dollars flushed off to foreign idiots. Repatriate them in 2 months if they cannot produce anything and bar them from subsequent entry. If lots of them being barred are from a certain village, tighten the restrictions to insist they must have something viable before joining, else impose a payback penalty. After all, they are supposed to be up and running instead of crawling from day one.
    There are those who took the chance to cheat through bogus qualifications but were never discovered. Even for those without bogus qualifications, they are from some third rate institutions. Idiot system from idiot chiefs voted by idiots.

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  • Throw them out:

    My tenant earns $6000/- pm excluding ot, commission n bonus!

    He is only 26 years old.

    Sinkies continue to loose to the Pappies!

    You want to be paid the same as my tenant……….throw out the Pappies?

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  • Conned Care:

    Why must the PAP tilt the job for Singaporean? How much money does a typical Singaporean pay for income tax as compare to the monthly levy collected from each FT. This is the real reason why PAP will never stop the inflow of FT….. 61% of Singaporean are real fool who cannot see the real picture even when they are unemployed. Need not pity these fools

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  • xoxo:

    Frankly,the young sgs need to have their arses burnt in order to realise that self-centredness will cause their own livelihoods.

    Younger sgs snide at older nation-builders but get screwed by FTs.

    They deserve it all.

    As for the daft FT policy,it has shown how equally daft scholar-gahmen truly are.

    Can ministers disagree that National Productivity has gone down with increasing number of Fake Talents(FTs)?

    Plot a simple 20 year chart with National Productivity on Y axis and Number of FTs on X axis and you see what i say.

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