Tan See Leng: Job hiring slows, but Singapore firms are still not favouring foreigners over locals - Singapore News

SINGAPORE: Singapore companies may be slowing down hiring, but there is no sign they are turning away from local workers in favour of foreigners.

That was the message from Manpower Minister Tan See Leng in parliament on Thursday (May 7), as concerns grow over how the Middle East conflict could affect jobs, business confidence, and long-term workforce planning in Singapore.

Dr Tan said hiring preferences between local and foreign workers have not shifted for now, even though some firms are becoming more cautious about expanding their workforce. The issue was raised by Member of Parliament Yip Hon Weng, who asked whether rising costs and uncertainty were causing employers to rethink who they hire.

Dr Tan responded by pointing to continued growth in resident employment in the first quarter of 2026 compared with the same period last year. He also defended Singapore’s work pass framework, saying policies are designed to give Singaporeans fair opportunities while allowing businesses access to foreign talent where needed, Channel NewsAsia (CNA) reports.

Balancing business needs with local jobs

This balancing act between companies’ and employment needs has become a recurring pressure point in Singapore’s labour debate. Whenever economic uncertainty rises, anxieties over jobs tend to follow close behind.

Questions about foreign manpower frequently return to the spotlight, especially in sectors experiencing slower growth or undergoing restructuring. This time, however, the government appears keen to signal stability rather than alarm.

Dr Tan said upcoming changes to Employment Pass and S Pass salary requirements, along with regular reviews of shortage occupation rules, are part of efforts to maintain that balance between business needs and local career growth.

Job hiring sentiment begins to soften

Hiring sentiment is showing signs of strain as the proportion of firms intending to hire over the next three months fell to 44.6 per cent in March, down from 54.6 per cent in February, according to figures cited by the minister.

The drop in the numbers comes as businesses worldwide grapple with supply chain concerns and energy uncertainty linked to the ongoing conflict in Iran and disruptions around the Strait of Hormuz.

Member of Parliament Choo Pei Ling then asked whether Singapore is preparing workers for a longer period of economic disruption, including pressures from artificial intelligence, trade fragmentation, and industry restructuring.

Dr Tan replied that the government is already adapting its workforce planning approach and said the upcoming Economic Strategy Review report would address many of these concerns. The review was launched last August, with recommendations expected by mid-2026.

Workforce stability is now tied to global risks

Parliament’s overall message centred on adapting to change rather than sounding the alarm bells, as Singapore’s economy has spent years preparing for such shocks, from pandemics to supply chain crunches.

But the latest crisis adds another reminder that workforce stability is no longer just about jobs, as energy security, Artificial Intelligence (AI) infrastructure, and global trade routes are now also deeply tied to hiring confidence.

Member of Parliament Liang Eng Hwa asked whether the conflict could trigger longer-term structural changes, especially after damage to oil and gas infrastructure in the region.

Dr Tan said it was still too early to draw firm conclusions. Still, he noted that trends already underway could accelerate. These include supply chain diversification, digitalisation, AI adoption, and the shift towards new energy sources.

He also described energy as an increasingly critical issue due to the massive computing power required to support AI and data centres.

Workers face a changing economic future

Beyond what many workers today are worried about, such as whether jobs exist, they are wondering what kind of jobs will still matter five years from now, and whether industries can keep changing faster than workers can adapt.

Singapore’s challenge now is to keep employment stable amid uncertainty while ensuring workers don’t feel left behind as businesses race to stay competitive.

For most people, the practical concern remains whether wages stay steady, jobs remain available, and opportunities still feel within reach despite everything happening outside Singapore’s borders.

A steady labour market does matter because uncertainty travels fast, and when businesses stop hiring, and workers stop feeling secure, confidence usually weakens long before the actual numbers do.

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