Higher EP Salaries Won’t Save Singaporean Jobs — Here’s Why
💸 Raising EP & S Pass Salaries to “Protect Singaporeans”? Let’s be real—it doesn’t.
PM Lawrence Wong just announced higher salary thresholds:
EP (Employment Pass): $5,600
S Pass: $3,300
The stated goal? “Protect Singaporean jobs” and ensure “quality” foreign workers.”
But let’s examine what actually happens.
If a company genuinely needs foreign talent, will a higher salary threshold stop them? No. They’ll just pay more.
Today, many firms are enjoying AI-driven cost savings. Automation, workflow tools, and digital systems reduce headcount and operational costs. The higher salary threshold becomes just another cost line — easily absorbed.
And what follows?
The cost of hiring more expensive foreign workers is passed down to consumers.
The foreign worker still comes — at a higher salary.
The Singaporean job seeker? Still competing in the same market.
The Bigger Issue: Skills Development Isn’t Working
We often hear that locals can upskill through SkillsFuture.
But let’s be honest — is it really developing deep, competitive capability?
A large portion of funded courses include:
Barbering
Massaging
Basic AI tools like ChatGPT usage
TikTok marketing
Image editing
Video editing
These are not high-barrier, high-value technical skills.
Learning to use ChatGPT or Canva is like learning Microsoft Excel — useful, yes. But it is basic digital literacy, not advanced AI engineering or machine learning capability.
Many Singaporeans are also confused about what constitutes real technical depth:
AI vs basic AI tools
Cloud computing vs simple SaaS usage
SQL database architecture vs running simple queries
Data science vs basic dashboard building
There is a dangerous illusion of upskilling — where people attend short courses, receive certificates, but gain little industry-grade expertise.
The Structural Gap
The real competitive skills needed today are:
Advanced software engineering
AI model development
Cybersecurity
Deep data infrastructure
Semiconductor and advanced manufacturing expertise
These require:
Years of technical foundation
Rigorous training
Real industry apprenticeship
Strong mathematics and systems thinking
Short courses on “AI content creation” or “TikTok monetisation” do not build national competitiveness.
Healthcare: Another Structural Example
Even with:
7% salary increases
PR pathways for foreign healthcare workers
We still see:
Rising MediShield premiums
Higher hospital bills
Long waiting times
Burnout among staff
Money is injected. Costs increase.
But manpower stress and systemic bottlenecks persist.
The Pattern
🚗 COE & ERP – Price congestion. Congestion remains.
🏠 ABSD – Price speculation. Housing pressure remains.
🌱 Carbon tax – Price emissions. Emissions also increased.
Imposing a carbon tax is supposed to help save the environment and encourage energy conservation.
But when we keep importing a large population — while the US and other major economies are returning to expanding carbon-intensive activities — it feels like all our sacrifices go down the drain.
What do we actually see on the ground? Higher inflation, rising costs, and a tougher life for Singaporeans
It’s like asking your child to switch off the lights, off the fan to save electricity…
while you secretly leave all the air-cons running and invite 20 more guests to stay over.
The child sacrifices. The bill still goes up.
That’s how carbon tax feels sometimes — we’re told to conserve and tighten our belts, but if population keeps expanding and bigger economies keep burning fuel freely, it’s like trying to empty a bathtub with a spoon while the tap is still running.
In the end, the water rises… and we’re the ones paying for it.
💼 EP/S Pass – Price foreign labour. Labour market competition remains.
🎓 SkillsFuture – Fund courses. Real capability gap remains.
💡 The pattern is consistent:
Pricing mechanisms and funding programs create activity — but don’t always solve structural problems.
What Would Actually Work?
✅ Deep technical pipelines from school to industry
✅ Apprenticeship-style industry immersion
✅ Sector-specific workforce planning
✅ Raising standards of training, not just volume of courses
✅ Clear distinction between digital literacy and advanced technical mastery
Singaporeans don’t need more surface-level certificates.
We need real capability building.
Policies should solve root causes — not just raise prices, increase premiums, or fund low-impact courses.
Singaporeans deserve better than token fixes.
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