Speech at Employment of Foreign Workers (Amendment) Bill, 2nd Reading Speech
Dr Ng Eng Hen, Minister for Manpower
Mr Speaker, Sir, I beg to move “That the Bill be read a second time.”
Rationale
2. Singapore today enjoys strong economic growth accompanied by plentiful new jobs - an all-time high of 176,000 in 2006, of which 90,900 went to locals. The economic prospects continue to look promising. We have a strong investment pipeline with a number of large infrastructural projects being completed over the next few years. Growth is broad-based across all industry sectors, especially finance, info-communications, marine and process industries. An estimated 450,000 jobs will be available in the next 5 years if the economy grows between 4.5% to 6.5% each year. These positive outcomes are a result of confidence in our economic and labour policies which are business-responsive and pro-growth.
3. Together with NTUC and employer organisations, we have established practices for a flexible labour market, which includes the judicious use of foreign labour to meet rapidly changing manpower demands. Our labour policies and harmonious industrial climate have resulted in jobs for all. Our employment rate is already one of the highest in the World - 76% of working-age Singaporeans are in employment. The strong labour market will get even tighter, as our economy grows. The number of workers needed to sustain this economic growth has exceeded the local supply.
4. The ability of our companies to access foreign manpower is a comparative advantage. But our foreign worker policy cannot be based on a laissez-faire approach, which will be detrimental to our overall progress. To protect the well being of foreign workers, we have imposed conditions on employers for their housing, remuneration and medical coverage. We also carefully identify where foreign workers are needed most and allow them into selected industries. We constantly monitor the labour situation and make fine adjustments to maintain the equilibrium between our economic competitiveness and other social objectives, to enable locals to compete for jobs. For example, we allow more foreign workers in the construction and marine industries where locals are less inclined to work; we allow a lower proportion in the manufacturing and services related industries, and almost none in community based shops and stalls. We have also taken a more liberal approach, with lesser controls, towards foreigners with better qualifications and skills. This is intentional, to attract skilled labour for which there is a global shortage.
5. Workers seeking better employment opportunities abroad is an integral feature of globalisation and benefits both sending and receiving countries. But we should also recognise that there are syndicates which exist in many countries that seek to exploit vulnerable foreign workers. Many exact payment through empty promises of work, only to leave them hapless and stranded in dire straits, especially in those countries which have porous systems or weak enforcement. This is a continuing problem and discussed in many global forums each year. I recently attended a United Nations High-Level Dialogue on International Migration and Development in September 2006, which highlighted the problems of illegal employment and mitigating measures needed be taken by both the source and receiving countries. Employers in Singapore who fall prey to the temptation of cheap labour in order to make a quick profit, can exacerbate the problem of illegal employment. As our economy grows, we can expect the proportion of foreign workers to increase with labour demands, and with it, the temptation to illegally employ foreign workers. Other countries have found that illegal employment can escalate rapidly, if not nipped in the bud. For example, President Bush is pushing through a Bill for tighter border controls but in accepting the problem as a fait accompli, legitimising the status of some 12 million illegal immigrants already in the US. Malaysia is also exploring new laws to strengthen the regulation of its foreign workforce and curb the trafficking of illegal immigrants1.
6. For Singapore, as a small island, we need to be vigilant and manage our foreign worker population well, to ensure that it continues to contribute positively to our economy. We need a robust system with effective laws, enforcement and safeguards against the illegal entry and employment of foreign workers and ensure that their well-being is protected. We have therefore in recent years expanded MOM's Employment Inspectorate and built up capabilities in intelligence, operations and investigations, among other areas. This has enabled us to step up enforcement in targeted sectors, such as the food and beverage as well as cleaning sectors. We have also enhanced promotional and outreach efforts to educate employers and workers about employment and immigration regulations.
7. To better manage the foreign workforce in Singapore, my Ministry has reviewed the Employment of Foreign Workers Act, or EFWA. This Bill amends the EFWA to increase the penalties for selected offences, introduce new offences and augment the powers of Employment Inspectors to facilitate enforcement efforts.
8. We will also take this opportunity to rationalise the legislative authority for all work passes. Currently, Work Permits and S-passes are regulated through a different statute from the Employment Passes. This Bill consolidates the legislative authority for all work passes under the EFWA, and renames it to the Employment of Foreign Manpower Act, or EFMA, to reflect its broader coverage. With the consolidation, the EFMA will be the key legislation governing the employment of foreigners at all levels in Singapore.
9. I will now highlight the significant provisions of the Bill.
Illegal Employment
10. As I had earlier highlighted, the illegal employment of foreigners remains a problem. Their errant employers evade levy payments, deploy them illegally, and ignore conditions imposed to protect their well-being. The number of illegal foreign workers arrested has increased from 2,148 in 1995 to 2,868 in 2006. Currently, the penalties for illegal employment and levy evasion are bundled, i.e. a minimum fine equivalent to 24 months of the foreign workers levy and a maximum fine equivalent to 48 months' of levy2 or imprisonment of up to a year or both.
11. Clause 8 of the Bill amends section 5 and introduces stiffer penalties specifically for the illegal employment of foreigners - a maximum fine of $15,000 or imprisonment of up to a year or both, for each case of illegal employment. For multiple charges, any fines imposed would be cumulative, whereas the jail terms may be ordered to run consecutively or concurrently depending on the court's discretion3. A mandatory jail term of between 1 to 12 months will continue to apply to repeat offenders. Any penalties imposed will be over and above the restitution of any levy evaded by such employers. Similarly, clauses 13 and 9 respectively amend sections 10 and 6A to impose the penalty of a maximum fine of $15,000 or imprisonment of up to a year or both on foreigners who are illegally self-employed, and on occupiers who permit a foreigner without a valid work pass to enter and remain at their work places.
Offences of Deception
12. Next, offences of deception. We have made work pass applications user friendly by allowing submissions through fax, mail or electronically. Work pass criteria are also made known to companies so that they have greater certainty to plan for their manpower needs. Some, knowing these rules, may choose to work around the system through fraud. The number of foreigners who obtained their Employment Passes and S passes through illegal means, by either using fraudulent documents or over-declaring their actual salaries, has increased by nearly four-fold from 97 cases in 2005, to 374 cases in 2006. These workers have entered our system illegally and if left unchecked, these abuses will over time undermine the integrity of our system. Accordingly, Clause 22 increases the penalties for such offences, which include the provision of false information, the illegal trade and alteration of work passes and the possession of forged work passes, to be similar to those for illegal employment, which are a maximum fine of $15,000 or 12 months' imprisonment or both.
13. Clause 22 also creates a new section 22(2), which requires any employer, foreign employee or self-employed foreigner who knows or has reason to believe that an offence of false declaration has been committed, to furnish such information to MOM. For example, MOM investigators have come across cases where either the employer or employee, or both, are aware that false information pertaining to the qualifications held by the worker, or the salary to be paid, is being supplied to MOM as part of the work pass application process. However, because they use the services of a third party to submit the application, they choose to keep quiet about the breach. The new section 22(2) will allow MOM to reduce the number of fraud cases. The obligation on parties with knowledge that a deception is being perpetrated to report such knowledge to the authorities is not new. For example, it is an offence under the Bankruptcy Act for a bankrupt to fail to notify the authorities if he is aware that a false claim of debt has been lodged by any person under the bankruptcy4. I would like to assure the House that MOM has no intention of using this new provision to prosecute minor, technical breaches. Rather, we will target those who have committed violations to circumvent our controls.
Powers of Employment Inspectors
14. To ensure better enforcement, the investigative powers of the Employment Inspectors are also enhanced. Similar to enforcement powers enjoyed by immigration officers under the Immigration Act, MOM's Employment Inspectors will be empowered under clause 21 to arrest without warrant both local and foreign suspects for EFMA offences of greater severity, namely illegal employment, the active deception offences, as well as the obstruction of MOM's investigations. They will also be empowered to seize any offensive weapons when making arrests. New sections 21A, 21B and 21C are introduced under clause 21 to prescribe the manner of arrest, the proper use of restraints, and the procedure for the search of arrested persons. These are similar to provisions in the Criminal Procedure Code.
Other Amendments
15. The Bill makes other administrative and technical amendments to allow better administration of the Act. Clauses 10, 19 and 21G respectively clarify the application, issuance and renewal procedures for work passes, specify the circumstances and manner in which the employer or the foreign employee should inform MOM of address changes, as well as stipulate the mode of disposal of documents or articles seized during investigations.
16. For consistency, certain provisions that are currently under the Immigration Act are also replicated under the EFMA, including the exemption of the decisions of the Minister and Controller of Work Passes in relation to the issuance, suspension and revocation of work passes from judicial review.
Conclusion
17. The proposed amendments introduced under this Bill will enhance the regulation and protection of our foreign workforce. It will help minimize the number of illegal workers and their negative social and economic consequences, even as our workforce grows. A well managed foreign workforce with proper safeguards for their proper deployment, health and well-being is important to ensure that our economic growth is sustainable and virtuous over the long term.
18. Mr Speaker, I beg to move.
1 In Feb 07, the Malaysian Ministry of Home Affairs announced the proposal for a new Foreign Workers' Bill to manage the foreign workforce, and impose obligations on employers. The proposed Bill is being reviewed following negative feedback on plans to confine foreign workers to their living quarters. The Government also tabled an Anti-Trafficking in Persons Bill in Apr 07 to address the issue of human trafficking.
3 Under the Criminal Procedure Code, where there are 3 charges or more, the court must order at least two of the jail sentences to run consecutively.
4 Under s 137(b) of the Bankruptcy Act, it is an offence for a bankrupt to fail to inform the Official Assignee if he knows that a false debt has been proved by any person under the bankruptcy. The offence is punishable by a maximum fine of $10,000 or imprisonment of up to 3 years or both.