Singapore: Fair consideration framework – is it fair enough

Global Watch ()

The announcement by the Ministry of Manpower (MOM) on September 23, 2013 regarding the introduction of the Fair Consideration Framework (FCF) has understandably been the subject of significant media coverage. See previous Global Watch. The FCF presents arguably the strongest indicator to date of the Government’s recognition of growing public sentiment of the need to moderate the influx of foreign workers and its perceived impact on available jobs, local infrastructure, and cost of living. It also aligns with the authorities’ stated objective of raising the quality of foreign manpower and encouraging companies to embrace productivity initiatives that help reduce reliance on manpower generally.

The FCF seeks to negotiate a sensitive path between balancing the needs and wishes of Singapore citizens with the continuing growth of the economy through the encouragement of foreign investment and business set up. The FCF will formally commence in August of 2014 and thus, the MOM has some time to address concerns about the practical application of these rules.