I refer to “Certis Cisco recruiting officers from Taiwan”. There’s more than meets the eye.
Certis Cisco (CC), a subsidiary of Temasek Holdings, was supposed to have advertised, but probably did not, on the Jobs Bank.
Temasek Holdings, which owns or is the major shareholder of government-linked companies, employs hundreds of thousands of cheaper (sometimes not) foreigners. So long as PAP continues to run Singapore as a corporation, Singaporeans should not expect our FT policy to be discarded.
Our FT policy also generates revenue for the government, as in the case of CC’s Taiwanese recruitment.
CC’s actual total cost – including the cost of levy and accommodation – of employing a Taiwanese officer with a degree is about $4000. Why CC is willing to pay so much to hire a foreigner is because part of its costs, eg S-Pass is in fact revenue to the government. Should CC employ a local, PAP earns nothing.
CC is likely to house its foreigner workforce at accommodations managed by EM Services or other GLCs. Through PAP’s FT policy, the government, GLCs and Temasek are clearly the winners at Singaporeans’ expense.
CC is willing to pay:
– A monthly salary of $2675
– Free accommodation (estimated cost $500)
– Total bonus of $4000 upon completion of 2-year contract
– $650 for S-Pass
* $4000/24 months
From the table above, it will cost CC at least $3991 per month to employ a Taiwanese. This excludes other miscellaneous costs such as return air ticket, additional overseas recruitment costs,etc.
Hiring foreigners come with social costs and CC should actually offer a premium when hiring Singaporeans.
CC spokesman was therefore telling an outright half truth when she said “The manpower shortage is a perennial situation in Singapore, and we have been working with the authorities to recruit from suitable alternative sources”.
CC did not offer to hire Singaporeans based on the total higher amount it was willing to pay a foreigner, ie costs of levy and accommodation amounting to more than $1000 were excluded.
A foreigner with a monthly levy of, say, $500 adds up to $6000 in yearly government revenue. Multiply this by 500,000 foreigners, PAP earns $3 billion yearly without generating any economic activity and at the stroke of a pen. Who really needs scholars to run Singapore when money drops from the sky?
Monthly levy collection: $500
Yearly levy collecion: $6000
X 500,000 foreign workers: $3 billion
X 1,000,000 foreign workers: $6 billion
From the above, one should be able to understand clearly why Lau Goh’s FT policy will be here for good.
For jobless and retrenched Singaporeans, you-die-your-own-business policy has always applied. But don’t say the PAP has no compassion – it has schemes such as WIS in place. So long as one is willing to accept any low-wage job and forego one’s dignity, the WIS recipient will receive a regular peanuts cash and CPF contribution.
PAP must continue hiring foreigners to increase headcount because an increased population density supports increasing property prices. PAP’s economic growth model has always relied on foreigner population – not productivity – growth.
Minister Shanmugam has also recently said that only Singaporeans, Singapore PRs and Malaysians are eligible to apply. Is CC, under Temasek CEO Ho Ching, able to suka suka override the Law Minister? Why were Taiwanese suddenly included in the hiring pool with no debate in Parliament?
CC has obviously not advertised in Malaysian states as the response would have been overwhelming. From the same table above, the salary and bonus alone amounted to a monthly salary $2841 – equivalent to about 8700 Malaysian ringgit.
Since lodging is provided, a Malaysian recruit can easily save $2000 every month, or about RM6000. CC wants to take Singaporeans for idiots – not a single Malaysian wanted the job and it has to recruit 120 officers from Taiwan.
PAP’s FT policy generates revenue for the government through levy collection, eg S-Pass, increases revenue/profit for government-linked companies by lowering costs and ultimately increases Temasek’s profits. This is done at the expense of Singaporeans.
It should therefore not have surprised anyone when a GLC like Certis Cisco engages in half truths to recruit foreigners living 3000 km away.