Singapore government try to reduce reliance on foreign workers.

According to MOM, workers will be reclassified as "basic skilled( those with Skill certificate)” & "higher skilled(those with 4 years relavant experience with skill certificte)”. There will be no more unskilled worker category. The respective levies for the two tiers will start at $230 and $180, and rise to $300 and $200 one year later.

While S Pass holders can still comprise up to 25 per cent of a company's workforce, employers from July will have to pay $100 per worker for the first 20 per cent and $120 a worker for the remaining 5 per cent. Three years on, the rates will hit $150 for the first 15 per cent and $250 for the rest.Currently, firms pay a $50 levy per S Pass worker. The number of S Pass workers nearly doubled from 44,000 in 2007 to 82,000 last December.

Because of the transitory nature of workers and the reluctance of Singaporeans to enter the sector, the levy hikes - at least for the next three years - will not achieve its intended aims. Consumers may be staring at higher housing costs in the medium term.( From today online by Teo Xuanwei).