Construction sector to suffer from 45% Man-Year Entitlements cut

Tighter foreign labour policy still lingers.

According to the MAS Macroeconomic Review, despite stronger labour demand, overall employment growth will be constrained by the tighter foreign labour policy. 

Apart from the foreign worker levy increases in January and July this year, the new tightening measures announced in Budget 2013 will further cap the inflow of low- and mid-skilled foreign workers, particularly in the services industries.

MAS noted that from July 2013, the Dependency Ratio Ceiling (DRC) and the S Pass sub-DRC will be cut further for the services sectors, while the minimum qualifying salary for S Pass holders will be raised across all sectors. Employment growth in construction will also be dampened by the cumulative 45% reduction in Man-Year Entitlements (MYE) since 2010.