Businesses in Singapore are mixed in their views on the Manpower Ministry’s move to increase administrative fees for most work passes.

Administrative fees for passes for foreigners to work here will be raised from December 1.

The Association of Small and Medium Enterprises (ASME) said the increases will be an additional burden, as businesses will have no choice but to pass the costs to consumers.

On the other hand, Sakae Holdings is not too concerned because it has been exploring other avenues, like technology, to cut down on manpower.

Its AVP for marketing communications, Ruth Lim, said the company currently uses iPads for customers to order their food at Sakae Sushi outlets.

In addition, the company is exploring the possibility of outsourcing work by foreign employers to service providers.

The application fee for three types of work passes will go up from S$10 to S$20.

The biggest increase in rates is for the issuance of the Employment Pass for foreign professionals.

This will go up from S$30 a year to S$120 per transaction.

As work passes generally last two years, this new rate is double the current amount.

For skilled workers on S Pass, the rate goes up from S$30 a year to S$70 per transaction.

For those on work permit, the amount is still S$20 per transaction but with no subsidy for those who opt for the pass online.

The ministry said the S$20 subsidy – to encourage online submissions – will be withdrawn.

ASME said this was disappointing because it contradicts the push for productivity and efficiency through the use of IT.

The ministry said it is increasing the rates with the aim of “full recovery of cost”.

It said the rates were set substantially below cost when they were first introduced six years ago in 2005.

The increases are in line with the policy for the cost of public service to be borne by users of the service rather than taxpayers.

Application and issuance fees for other passes will also be adjusted. The issuance fee for an EntrePass will cost more – from S$30 per year to S$120 per transaction.

Source: CNA