The EP and the PR

By now we all know that the EP can employed at a minimum salary of $3,900. There is no quota, no levy to be paid. The PR is usually a progression from the EP after many years of working in SG. The PR is subjected to CPF Contributions. After becoming a PR, more job openings are available to the PR since now he may not have to renew his EP every 3 years. However, he should not be counted as a Local since he still does not hold a SG PP.

Whether it’s a EP or PR, both are in direct competition with our Locals for that 1 PMET position. The PR actually intensifies the competition for jobs with Locals when he becomes one from previously an EP.

The argument that we often hear is hire more FT to increase jobs for Locals. Is this model of jobs creation trying to tell us that after hiring 500 EP then the the respective businesses will be able to grow and expand. When they grow and expand they need to hire more people. And more Locals will be employed. Is that true? If it’s true our Local PMETs should no have problems getting employed, right? Given that it’s true, how many EPs and PRs are needed to generate 1 employment opportunity for our Locals? 500? 1,000? Is that why the FT numbers are growing but we see only negligible or slight employment improvements for our Locals?

Or is it that as these businesses expand and grow, they employ more and more EPs since there’s no quota, no levy?

Either way, this is a numbers game with Locals on the losing end as long as there is no quota requirement, no levy and no corresponding hire of a Local for every EP issued!

So who benefits? The Employer will benefit through lower cost of labour, no CPF, no downtime due to no ICT. This EP actually favours Employer more than giving Local an equal chance at being employed.

When an Employer benefits, it saves costs, makes a profit and need to pay corporate tax to IRAS. Ok, fine hopefully the Employer distributes a bonus to all staff Locals and FT when there’s a profit. But when and where is the job creation for Locals?

If you think my article makes sense, please share with your children. Because, we need to educate our children how our policies are For Us, With Us. So they know & understand why it’s been so difficult for them to get employed, why the odds may be stacked against them.

Thanks everyone for reading my post!

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