6 minute read
Ways to Earn a Living in Singapore
By Dee Khanduja
Recent changes to work permits for foreigners in Singapore has left many wondering: Is it possible to earn an income in Singapore without being a Permanent Resident (PR), or holding an Employment Pass (EP), S Pass, Letter of Consent (LOC), or other work permit?
The short answer is yes and no. This article goes through some ideas on how you may earn an income in Singapore legally, without a local work permit, though certain conditions apply.
I recently gave a talk for CRCE about how to work in Singapore under the revised guidelines. I discussed a lot in that talk including hot new industries, pivoting, and more. I also discussed the information shared here.
To get to the bottom of the matter, I spoke to both the Ministry of Manpower (MOM) and the Inland Revenue Authority of Singapore (IRAS) to attempt to gain some clarity on the scenarios where someone can work in Singapore without a work pass.
Dependant’s Pass Holders
Many DP and LOC holders were dealt a blow earlier this year when MOM announced changes to the LOC structure.
Due to the higher salary thresholds and criteria for EPs, and the quota limits for S Pass holders, many DP and LOC holders have been wondering how they can earn a living in Singapore without flouting the relevant rules.
It is worth nothing that some DP holders may be eligible to apply for a work permit, should it be difficult to obtain an EP or S Pass.
As stated on the MOM website:
You may wish to reach out to MOM and talk to potential employers to see if you are eligible for a work permit, should an S Pass or EP not be possible.
A Changing Landscape in the Workplace
With the advent and acceptability of remote working being a new norm, many opportunities open up globally. We are seeing a rise in jobs that indicate remote work as a feature of the job. Additionally, the “gig economy” is thriving and growing exponentially. Companies can source talent globally, instead of focusing on those solely within the local market.
This means you can jump on the bandwagon by offering your skills, expertise, products, and services to the overseas market in a variety of formats. You could apply for jobs in another country while you remain based in Singapore. In such cases, the role should serve an overseas market, with no connection to Singapore.
For example, if you are a marketing professional, you could apply for marketing jobs outside of Singapore to offer your marketing services. But would you need an appropriate work pass to be able to work overseas from Singapore?
Overseas Income Earned in Singapore
As you are probably already aware, if you are on a DP in Singapore, you need to obtain the correct work pass to be able to work in Singapore. But these rules don’t necessarily apply if you obtain work outside of Singapore.
According to the IRAS website:
When I spoke to MOM, they confirmed that DP holders could in fact work remotely from Singapore on overseas assignments, that are not connected with Singapore in any way.
Both MOM and IRAS mentioned that we are able to derive a “global income” and have it paid to our Singapore accounts. However, there are conditions to this. Namely, our global income must be derived from activities that are wholly conducted outside of Singapore.
Or put another way, we can provide products and services for overseas companies/clients, and service overseas markets, as long as our work is not connected to Singapore in any way.
In such instances, it is possible to derive global income and receive it in Singapore. Since you are able to earn global income, derived from providing your services overseas, you may be able to explore other markets to target your goods and services.
Suddenly the world is your oyster.
Some Ideas to Explore
Here are some ideas on how you could earn an income for your skills in Singapore, without breaking any rules locally:
• Research remote freelance or contract work for companies based overseas. For example, you could be a copywriter providing services to an Australian business.
• Explore permanent employment with an overseas employer that provides services outside of Singapore. For example, you could get a job with a company in your home country, but work remotely from Singapore.
• Search for ad-hoc gigs with global entrepreneurs or companies. Use LinkedIn to network for leads.
• Collaborate with other companies to supply your products to another market For example, if you make soaps, perhaps you could partner with a company in New Zealand to supply your soaps to that market.
Marketplaces for Skills
The gig economy is here to stay! It is estimated that the global gig economy will be worth $347 billion this year, and will grow to $455 billion in 2023. Some websites where you could list your services include:
www.fiverr.com
www.upwork.com
www.peopleperhour.com
LOC-run Small Business
Some LOC holders running small businesses have been worried about their ability to keep an LOC due to the changed criteria. Not all small business holders qualify for an EP. For such business holders, here are a couple of ideas on how you may be able to still operate your business, albeit in a different context:
• If you run a business on an LOC supplying non-perishable products, perhaps target the overseas market instead of Singapore.
• Explore the possibility of setting up your business entity overseas instead, perhaps in your home country. You could also look into collaborating with a partner in another country.
With both of these ideas, you will need to research tax implications. It’s worth speaking to IRAS to find out how/if you must declare such income in Singapore, and under what structure.
Marketplaces for Products
If you have a product-based business, you could list your product on marketplace or product listing websites, such as:
www.amazon.com (Remember to look at the overseas Amazon marketplaces and not the Singapore one, or you may be deemed to be providing your products to the Singapore market.)
www.etsy.com
www.notonthehighstreet.com
Income Tax on Global Income
There are certain situations where global derived income is taxable in Singapore.
I suggest you visit the IRAS website to get the low-down on the scenarios where you need to declare your global income, so you can pay the correct tax.
Please do contact both MOM and IRAS to check about your individual situation and run any scenarios past them. This will help you set yourself up correctly, should you wish to explore any of the ideas in this article.
Different times call for different measures and different thinking. The “old” way of doing things is clearly out. But this need not result in us closing shop and falling into despair. There are still ways to earn an income in Singapore.
If you had a business that targeted the Singapore market, then perhaps this is the push needed to think globally. And perhaps a global market could present more opportunities than the local one. It’s also a great time to seek out global partners and explore win/win partnerships.
Change is daunting, but I hope this article provides ideas for you to expand your narrative and explore further.
Be sure to check out upcoming CRCE events, which will expand on some of these ideas!
