Ms He Ting Ru (Sengkang): The European Union (EU) is currently proposing a law, which requires larger companies to identify actual or potential negative impacts on human rights and their supply chain; and to prevent, mitigate and remedy these impacts. This is on top of existing laws that already require large companies to perform due diligence on supply chains to ensure that they have a plan of vigilance to identify risks relating the labour practices, health and safety or environmental issues.
Our policies relating to recruitment fees have an impact in Singapore’s ability to attract investment and business, particularly in sectors like the maritime industry, where companies have to employ many migrant workers. What are the reputational and legal risks for companies in the development of the Ministry of Manpower’s (MOM’s) policies and allocation of resources for enforcement?
Agreement has been reached between the European Parliament and Council and we are likely to see further progress on rules enforcing labour rights in global supply chains soon. These are seen to foster a business environment with legal certainty, a level playing field and sustainable competition that does not benefit from worker exploitation.
Germany has already enacted similar laws. In 2019 the International Labour Organization (ILO) governing body approved the definition of recruitment fees and related costs – emphasising that recruitment fee should not be borne by workers or jobseekers, as workers must not be required to pay for access to employment or it takes time for workforce structures to change.
There are international standards ready for adoption by EU legislators and EU-based MNCs. Migrant workers continue to pay high recruitment fees of up to $12,000 to have the opportunity to work in Singapore. This is an area of concern, given the risk of debt bondage to workers’ rights as well as their practical ability to make economic decisions, such as a choice to leave a job with poor working conditions. Specifically, what are our recruitment fees? The Workers’ Party reiterates our call for the creation of a Government jobs’ portal that advertises all open positions for migrant workers – to cut fees workers pay to agents in Singapore and overseas.
The Minister of State for Trade and Industry (Mr Alvin Tan): As an open economy, our firms are inevitably exposed to global supply chains impact. Ms He Ting Ru pointed out that Singapore companies are therefore having to deal with new risks. We note that she has asked specific questions on manpower which we will defer to the Ministry of Manpower to address at this point.
But the point is we cannot fully shield our companies from these risks, but we can provide financing for them and help them to build their capabilities. For example, they can use our Market Readiness Assistance (MRA) and the Enterprise Development Grant (EDG) to defray the cost of venturing outside and exploring these new markets.
We also offer a 200% tax deductible on eligible expenses for international market expansion and investment development activities through our Double Tax Deduction for Internationalisation (DTDi) scheme.
I note the respond to a Parliamentary Question last year, that we are considering facilitating direct recruitment channels for returning workers. Are there any updates? It is also said that we have no legal jurisdiction to influence the recruitment fees migrant workers pay in their home countries. But are MOM and MTI engaging with source countries on the recruitment fee issue given the impact that it will have on MNCs’ supply chains in Singapore.
Ministry of Trade and Industry
1 March 2024
https://sprs.parl.gov.sg/search/#/sprs3topic?reportid=budget-2361
Office of the Leader of the Opposition 