New measures aim to boost productivity and local workforce participation
Singapore is set to tighten its foreign worker quota and raise levies for the marine and offshore engineering sector starting in 2026, as part of broader efforts to reduce reliance on foreign labor and encourage industry transformation.
The dependency ratio ceiling (DRC), which determines the maximum proportion of foreign workers in a company, will be lowered from 77.8% to 75%, meaning firms will be allowed three foreign workers per local employee instead of the current 3.5. Additionally, foreign worker levy hikes—announced in 2013 but deferred due to economic downturns and COVID-19—will now proceed as planned.
To support industry transformation, the government is introducing a S$100 million support package over five years. This funding will aid companies in adopting digital solutions, improving productivity, and developing offshore wind capabilities. A Marine Digitalisation Champion Programme will also be launched to train employees in digital transformation, while a new Jobs Transformation Map will guide workforce adaptation to emerging roles in renewable energy and decarbonization.
Singapore’s trade and industry strategy also includes a push for AI adoption, with plans to establish AI Centres of Excellence and partner 100 companies in AI development. Additionally, a new Global Business Leaders Programme will support the growth of Singaporean corporate leaders through overseas postings and mentorship opportunities.
As the country pursues economic transformation, these initiatives aim to enhance competitiveness, foster innovation, and create sustainable growth opportunities for businesses and workers alike.
