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 con...