Foreign-owned firms in Singapore employ 60% of high-earning residents

Figure underscores importance of attracting foreign investments to boost local workforce: MOM

- Tay Hong Yi

Around 20 per cent of firms here are foreign-owned, yet they employ 60 per cent of Singapore residents in high-earning jobs.

The Ministry of Manpower (MOM) released the figures on Sept 17, showing that foreignowned firms employ an outsized share of those who earn a gross monthly income of above $12,500 and fall into the top 10 per cent of income distribution.

The ministry said the figures underscore the importance of attracting foreign investments and the global talent that follows such investments, in a way that complements local resident workforce growth and creates good jobs for Singaporeans.

The move to release the numbers a first for MOM comes amid persistent anxieties from some quarters around job prospects for locals.

Foreign-owned firms in this case refer to those with under 50 per cent local equity, and with at least one employee.

Overall, these firms provide jobs for nearly one-third of employed residents, which refers to those who are permanent residents or citizens, noted MOM in its latest labour market data for the second quarter of 2024.

It added that foreign-owned firms also create business for local small and medium-sized enterprises, which hire the majority of resident workers.

The data also showed that although the unemployment rate improved over the quarter, there was a sizeable decline in the proportion of retrenched residents who found new jobs within six months. This re-entry rate fell to 55 per cent, from 59.4 per cent in the preceding quarter.

Mr Ang Boon Heng, director of MOM's manpower research and statistics department, said there has been a general downtrend in this figure over the years.

"What it actually suggests is that more and more individuals are taking more time to seek out, to train for better jobs," he told reporters at a media briefing on Sept 16.

He noted that the re-entry rate also improves significantly with time, to about 70 per cent at the 12month mark.