08/07/2021

Singapore - India Comprehensive Economic Cooperation Agreement (CECA)

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5 myths and facts about the trade pact

In a ministerial statement on Tuesday (July 6), Health Minister Ong Ye Kung - formerly the deputy chief negotiator for the US-Singapore FTA - and Manpower Minister Tan See Leng debunked misconceptions about the Singapore-India Comprehensive Economic Cooperation Agreement (Ceca).

The free trade pact, which was inked in 2005, has come under attack from some quarters on social media, as well as during last year's general election.

Here are five myths and facts about Ceca, according to the Ministry of Trade and Industry:
  • Ceca obliges Singapore to give Indian workers free entry into Singapore
  • Ceca gives Indian nationals privileges for citizenship or permanent residency
  • Ceca obliges Singapore to allow the entry of Indian dependants and for them to work in Singapore
  • There is a separate category of 'professional visas' for the 127 professions listed in Annex 9A of Ceca
  • The nationality profile of Singapore's foreign workforce has been influenced by Ceca


8 highlights from parliamentary debate on FTAs, Ceca

Health Minister Ong Ye Kung and Manpower Minister Tan See Leng delivered ministerial statements in Parliament on Singapore's free trade agreements (FTAs), such as the Singapore-India Comprehensive Economic Cooperation Agreement (Ceca), on Tuesday (July 6).

Here are the highlights:
  • FTAs, Ceca made 'political scapegoats'
  • Ceca does not allow unconditional entry of Indian professionals
  • Globalisation critical to Singapore's survival
  • FTAs key to Singapore's existence
  • Competition between local and foreign PMEs not zero-sum game
  • Jobs created for local PMEs outstrip rise in EPs in finance, infocomm
  • On foreigners and CPF contributions
  • Proportion of Indian EP holders doubled, but not a result of more favourable treatment due to Ceca


Ong Ye Kung in Parliament: FTAs and CECA made "political scapegoats", PSP statements "false"

In a ministerial statement on Tuesday (Jul 6), Minister Ong Ye Kung spoke about allegations from the Progress Singapore Party (PSP) that the India Comprehensive Economic Cooperation Agreement (CECA) allows professionals from India a "free hand" to work in Singapore.

He said that free trade agreements and CECA are not the causes of the challenges professionals, managers and executives face in Singapore and added that these agreements have been made "political scapegoats" to "discredit the policy of the PAP Government".

related:


Ministerial statement: Tan See Leng on ICTs, CECA and openness to global talent

Intra-corporate transferees (ICTs) do not get unfettered access to Singapore's labour market under free trade agreements, including CECA with India.

They have to meet the Manpower Ministry's work pass criteria. Manpower Minister Tan See Leng, in his ministerial statement in Parliament on Tuesday (Jul 6), said the number of ICTs has consistently been "very small".

In 2020, there were about 4,200 of them, with about 500 from India. He suggested setting aside "this red herring", as the heart of the matter is remaining open to global talent to create opportunities for Singaporeans.


Singapore officials defend CECA trade pact with India amid immigration concerns
Singapore will hold a parliamentary debate on the Comprehensive Economic Cooperation Agreement (CECA) with India, following opposition concerns about the pact. Photo: Facebook

Singapore officials on Tuesday mounted a fierce defence of a trade pact with India, saying false claims that the agreement allowed unfettered immigration from the South Asian nation were “seductively simplistic” and aimed at discrediting the ruling People’s Action Party (PAP).

Criticism of the Comprehensive Economic Cooperation Agreement (CECA) has simmered for some time among the PAP’s adversaries, with the likes of the opposition Progress Singapore Party (PSP) and the Peoples Voice party highlighting the matter in last year’s general election.

The 2005 trade pact is again in the spotlight following an ongoing national debate on racism in the city state. Officials have charged that criticism of CECA – one of the country’s 26 free trade pacts – was in fact baseless and fomented anti-Indian sentiment in the multiracial nation. The critics countered by saying the government was being too quick to label them as racists while not publicising data to back up the official position that the trade deal creates jobs for citizens.


Misunderstandings over Ceca could have been nipped in the bud if Govt released more data earlier: Pritam
Leader of the Opposition Pritam Singh also asked about strengthening the enforcement arm of the Tripartite Alliance for Fair and Progressive Employment Practices. PHOTO: GOV.SG

The misunderstandings and unhappiness over the India-Singapore Comprehensive Economic Cooperation Agreement (Ceca) could have been addressed and nipped in the bud if the Government had released more information earlier, suggested Leader of the Opposition Pritam Singh.

The Workers' Party chief made this point on Tuesday (July 6) during the debate after Health Minister Ong Ye Kung and Manpower Minister Tan See Leng gave ministerial statements on Singapore's free trade agreements and foreign manpower policies.

He noted that in 2016, fellow WP MP Leon Perera had asked the Manpower Minister for the number of intra-corporate transferees (ICTs) working in Singapore through Ceca.


Are Singaporean workers really losing jobs to Indian expats due to Ceca free-trade deal?

As Singapore’s economy slows amid the coronavirus pandemic and job losses mount, people’s anxieties over their livelihoods have found a convenient target: a free-trade agreement Singapore signed with India in 2005.

On social media, the Comprehensive Economic Cooperation Agreement (Ceca) is being blamed for willy-nilly letting Indian nationals into Singapore to steal jobs from locals – no matter how many times the government says it is not true.

On a Facebook post of a news article explaining that Ceca did not give Indians automatic access to citizenship, permanent residency or employment, Stephanie Low commented: “Our jobs are taken by Ceca! Wait till the ministers’ jobs are also taken by them, then they will know!” Others, like Emran Rahman, disparagingly referred to Indians as Ceca, saying: “Everywhere CECA! Even housing estates have them around!”


Indian EP holders nearly doubled to 25%, driven by digital economy growth, not due to Ceca
The increase in proportion of Indian EP holders has been driven by the growth of Singapore's digital economy, rather than the result of more favourable treatment, said Mr Tan See Leng.PHOTO: GOV.SG

The proportion of Employment Pass (EP) holders from India doubled to 25 per cent last year, from 14 per cent in 2005.

This was driven by the rapid growth of Singapore's digital economy, rather than the result of more favourable treatment for Indian EP holders due to the Singapore-India Comprehensive Economic Cooperation Agreement (Ceca), Manpower Minister Tan See Leng told Parliament on Tuesday (July 6).

"As every sector seeks to be digitally enabled, their need for tech talent has grown significantly," he said, emphasising that Singapore currently does not have enough locals to fill the jobs available. In the infocomm sector alone, 6,000 jobs remain unfilled.

related:

Nothing in CECA implies that Indians get jobs in Singapore unconditionally: Minister

There is "nothing" in the Singapore-India Comprehensive Economic Cooperation Agreement (CECA) which implies that the city-state must let in professionals from India unconditionally, a senior minister told Parliament on Tuesday, rejecting allegations by the Opposition that the pact paves the way for Indian nationals to take up jobs in this country.

Health Minister Ong Ye Kung made a ministerial statement in Parliament, aimed at dispelling “false allegations” surrounding CECA and laying out the importance of trade pacts for Singapore.

Contrary to claims made by the Opposition Progress Singapore Party (PSP), Singapore's ability to impose requirements for immigration and work passes “has never been in question” in CECA or any other free trade agreements (FTAs) that the country has signed, he told the lawmakers.


No PR data by nationalities as it would create ‘negative sensitivities’: Shanmugam

Singapore does not publish breakdowns of its permanent resident population by nationality as doing so may have implications on specific groups of PRs and create bilateral sensitivities with their country of origin, said Law and Home Affairs Minister K Shanmugam on Monday (5 July).

Shanmugam was responding in a written parliamentary reply to questions by Leader of the Opposition Pritam Singh on the numerical breakdown by nationality of Singapore's PRs from each of the top 20 countries and further sub-divided by gender, and how many who were PRs for 10 and 20 years have not applied for citizenship at least once. Singapore's PR population is about 45 per cent male and 55 per cent female. Shanmugam said that a large number of the PRs come from Singapore’s “geographically nearest” neighbours.

“Given our history, it has been our assessment that releasing the data of country of origin of our PRs will both create negative sensitivities with other countries; and may affect the flow of PRs from such countries,” he added. About 60 per cent of the persons granted PR were from Southeast Asia, followed by about 34 per cent from other Asian countries, and the remaining 6 per cent from other countries, according to the Population in Brief 2020, which was based on the PR grants in 2019.


Nationalities of PR pool not published as it would create ‘negative sensitivities’ — K Shanmugam

We do not publish breakdowns of our permanent resident (PR) population by nationality as it may have implications on specific groups of PRs and create bilateral sensitivities with their country of origin, said Law and Home Affairs Minister K Shanmugam on Monday (Jul 5).

Mr Shanmugam, in his written reply to a parliamentary question provided by Leader of Opposition Pritam Singh, addressed the topic of the nationalities of Singapore’s PR pool.
Mr Singh had asked for the numerical breakdown of the PR pool from each of the top 20 countries and further sub-divided by gender.

He also asked for the number of those from the top 20 nationalities that remained as PRs for the last 10 and 20 years and have not applied for citizenship at least once.


Written Reply to Parliamentary Question on the Nationality of Singapore's Permanent Resident Pool, by Mr K Shanmugam, Minister for Home Affairs and Minister for Law

Question:
  • Mr Pritam Singh: To ask the Minister for Home Affairs (a) what is the numerical breakdown by nationality of Singapore's permanent resident (PR) pool from each of the top 20 countries and further sub-divided by gender; and (b) of these top 20 nationalities, how many individuals have remained as PRs for the last 10 and 20 years respectively and have not applied for citizenship at least once.
Answer:
  • Our Permanent Resident (PR) population is about 45% male and 55% female.
  • We do not publish breakdowns of our PR population by nationality. Doing so may have implications on specific groups of PRs and create bilateral sensitivities with their country of origin. A large number of the PRs come from our geographically nearest neighbours. Given our history, it has been our assessment that releasing the data of country of origin of our PRs will both create negative sensitivities with other countries; and may affect the flow of PRs from such countries.
  • However, the broad regions where our PRs come from can be found in the annual Population In Brief publications. In the Population in Brief 2020, which reports on the PR grants in 2019, about 60% of the persons granted PR were from Southeast Asia, followed by about 34% from other Asian countries, and the remaining 6% from other countries.
  • Our immigration policy is carefully calibrated, and we have kept the size of our PR population stable at around half a million for a number of years. About 58% of them have been PRs for 10 years or more, and 18% have been PRs for 20 years or more.
  • PRs contribute to Singapore’s economy and society in many ways. Many are also spouses of Singaporeans and parents of Singaporean children. Many go on to apply for our citizenship, and and some are eventually granted. We are very strict to whom we grant citizenship.


Ong Ye Kung: CECA is part of the solution

In Parliament on Tuesday (Jul 6), Health Minister and former trade negotiator Ong Ye Kung sought to clarify the role free trade agreements (FTA), especially the Comprehensive Economic Cooperation Agreement (CECA), play in Singapore.

However, during the course of his speech, Mr Ong took aim at the Progress Singapore Party (PSP) several times, saying that the PSP has used FTAs as “political scapegoats” to discredit the People’s Action Party government. The Minister refuted allegations that the inflow of Indian professionals has cost Singaporeans their jobs.

”This is a seductively simplistic argument that workers facing challenges at their workplaces can identify with, and has stirred up a lot of emotions. CECA-themed websites have sprouted, filled with disturbing xenophobic views about Indian immigrants,” Mr Ong said. But FTAs, and CECA in particular, “are part of the solution.”



Ong Ye Kung: CECA is part of the solution
The Minister refuted allegations that the inflow of Indian professionals has cost Singaporeans their jobs

In Parliament on Tuesday (Jul 6), Health Minister and former trade negotiator Ong Ye Kung sought to clarify the role free trade agreements (FTA), especially the Comprehensive Economic Cooperation Agreement (CECA), play in Singapore.

However, during the course of his speech, Mr Ong took aim at the Progress Singapore Party (PSP) several times, saying that the PSP has used FTAs as “political scapegoats” to discredit the People’s Action Party government. The Minister refuted allegations that the inflow of Indian professionals has cost Singaporeans their jobs.

”This is a seductively simplistic argument that workers facing challenges at their workplaces can identify with, and has stirred up a lot of emotions. CECA-themed websites have sprouted, filled with disturbing xenophobic views about Indian immigrants,” Mr Ong said. But FTAs, and CECA in particular, “are part of the solution.”

related:


CECA & FTAs Are Part Of Solution To Challenges Faced By S’poreans: Ong Ye Kung
Disappointing That CECA Is Used As Political Scapegoat: Ong Ye Kung

Over the years, there’s been a growing sentiment that free-trade agreements (FTAs) signed by Singapore are detrimental to the country.

The Singapore-India Comprehensive Economic Cooperation Agreement (CECA) is a particular bugbear amongst some, in the belief that such deals are taking jobs away from Singaporeans.

Progress Singapore Party (PSP) non-constituency MP Leong Mun Wai noted FTAs and CECA as having affected jobs and livelihoods of Singaporeans on 22 Jun.


FTAs and Ceca made 'political scapegoats', falsehoods need to be corrected: Ong Ye Kung
In his ministerial statement, Health Minister Ong Ye Kung referred to a social media post made by PSP Non-Constituency MP Leong Mun Wai in June.PHOTOS: SCREENGRABS FROM GOV.SG

The Progress Singapore Party (PSP) has repeatedly made false statements that the Singapore-India Comprehensive Economic Cooperation Agreement (Ceca) gives Indian professionals "a free hand" to come and work in Singapore, said Health Minister Ong Ye Kung.

In a social media post in June, PSP Non-Constituency MP Leong Mun Wai had also claimed that foreign professionals, managers, executives and technicians (PMETs) and free trade agreements (FTAs) have affected the jobs and livelihoods of Singaporeans, Mr Ong noted in Parliament on Tuesday (July 6).

"These statements are false. They have been repeated for too long," he said, adding that FTAs and Ceca have been made "political scapegoats" to discredit the Government's policies.

related:


Ceca does not affect Singapore’s ability to regulate immigration
Ong Ye Kung's ministerial statement says FTAs play key role here

Far from leading to an unfettered inflow of foreign professionals, free trade agreements (FTAs) play a key role in ensuring the survival of Ong Ye Kung's ministerial statement says FTAs play key role here small countries like Singapore, said Health Minister Ong Ye Kung.

Nor is the Republic's ability to regulate immigration and foreign manpower affected by an FTA like the India-Singapore Comprehensive Economic Cooperation Agreement (Ceca), he told the House yesterday.

Singapore signed the bilateral agreement with India in 2005. In two ministerial statements, Mr Ong and Manpower Minister Tan See Leng laid out the importance of free trade pacts and debunked falsehoods about Ceca, whose immigration-related elements have come under fire on social media and by the opposition. They also stressed that changes in foreign workforce numbers over time are to be expected, given that policies, as well as countries' industry needs, change over time.


CECA and other FTAs do not give foreigners 'free rein to come to live and work in Singapore': Ong Ye Kung

Competition between foreign and local professionals, managers and executives (PMEs) is not a zero-sum game, Health Minister Ong Ye Kung told the House on Tuesday, while defending the government's policy on free trade agreements (FTAs).

Specifically, the India-Singapore Comprehensive Economic Cooperation Agreement (CECA) does not oblige Singapore to unconditionally allow entry to PMEs from India, he stressed: "Our ability to impose requirements for immigration and work pass has never been in question in CECA or any other FTAs that we have signed."

Mr Ong, a former trade negotiator, added that FTAs, including CECA, "are not the cause of the challenges our PMEs face; if anything, they are part of the solution".


PSP raises more questions in debate on foreign worker policies, refuses to retract CECA allegations
NCMP Leong Mun Wai, Health Minister Ong Ye Kung and Manpower Minister Tan See Leng debate Singapore's foreign workforce policies in Parliament on Jul 6, 2021

Progress Singapore Party (PSP) Non-Constituency Member of Parliament Leong Mun Wai raised more questions on Singapore’s foreign worker policies after two ministers delivered statements in response to the party’s questions in Parliament on Tuesday (Jul 6).

Mr Leong refused to back down entirely despite Health Minister Ong Ye Kung pressing him more than once during the debate to acknowledge that some of PSP’s statements about an Indian-Singapore free trade agreement (FTA) were false.

“The whole purpose of this statement is that I know PSP is preparing for a motion debate, but I'm also hoping that we all go into the debate with some common ground … Let's put aside the falsehoods … and don't bring them into the motion,” said Mr Ong.


Hazel Poa asks for clarification on PSP's supposed false allegations on CECA, Ong Ye Kung gives 4 examples

Health Minister Ong Ye Kung and Manpower Minister Tan See Leng made their ministerial statements in Parliament on Tuesday (July 6) on the necessity of pursuing Free-Trade Agreements (FTAs).

During their speeches, the two ministers addressed supposed falsehoods about the India-Singapore Comprehensive Economic Cooperation Agreement (CECA), and specifically called out Progress Singapore Party (PSP)'s Leong Mun Wai on a number of statements he made about it.

In response, PSP's Hazel Poa asked the minister a number of clarifications, stating that an open debate, "based on the right information", can only be beneficial to all parties involved.



Chan Chun Sing clarifies 3 common misconceptions about Ceca

In an interview on Friday (Aug 28), Trade and Industry Minister Chan Chun Sing debunked three misconceptions about the Singapore-India Comprehensive Economic Cooperation Agreement (Ceca).

The free trade pact has come under attack from some quarters on social media in recent months as well as during the general election.

3 Myth:
  • Ceca grants Indian nationals unconditional access to Singapore and immigration privileges
  • Ceca does not benefit Singapore economically
  • Ceca has caused overconcentration of Indian nationals in some companies here


What the heck is CECA & should you be angry at it, explained
So, what exactly is CECA, and should you be angry about it?

CECA had its beginnings in April 2002, when then-Prime Minister Goh Chock Tong and India's then-Prime Minister Atal Bihari Vajpayee announced intentions to explore the benefits of closer economic ties between the two countries with a view towards launching a comprehensive economic partnership agreement within one year.

A 10-member India-Singapore joint study group was established to research the extent and structure of the agreement. The group included representatives from the two countries' ministries of foreign affairs, commerce, and finance, as well as representatives from the business and industry sectors. Its study focused on the effect of the liberalisation of trade in goods, services, and investments, as well as areas related to international trade, with the group's resulting report accepted as the framework for talks held between Singapore and India over what CECA would look like.

Singapore sent a 30-member negotiation team led by Deputy Prime Minister and Finance Minister Heng Swee Keat, who at the time was our permanent secretary for trade and industry. After 13 rounds of negotiations, CECA was signed off on June 29, 2005, during Prime Minister Lee Hsien Loong's state visit to India. A press release issued at the time said that the agreement would "further enhance bilateral ties by catalysing the already growing flows of trade, investment, ideas and people."


India-Singapore Comprehensive Economic Cooperation Agreement

The landmark India-Singapore Comprehensive Economic Cooperation Agreement (CECA) is India’s first-ever such agreement and the first between Singapore and a South Asian country. It came into effect on 1 August 2005. The first review of the pact was concluded on 1 October 2007, while the second review has been ongoing since 11 May 2010.

Background - During a business forum at the Shangri-La Hotel in Singapore on 8 April 2002, then Prime Minister Goh Chok Tong and his Indian counterpart, Atal Bihari Vajpayee, announced the decision to establish a group to study the potential benefits for closer economic ties between the two countries, and to launch a comprehensive economic partnership agreement within one year. Goh reasoned that this would create a strong base for Indian companies in the ASEAN (Association for Southeast Asian Nations) region and, at the same time, boost the confidence of Singapore companies interested in investing in India.1

At the time, India was one of the fastest-growing economies in the world and had a potential market of over 360 million middle-class consumers. For India, on the other hand, Singapore was a gateway to the ASEAN market and East Asia, particularly China.2 India also had an abundance of skilled manpower, while Singapore possessed good infrastructure and processes. Some of the key features of the CECA were:
  • Enhancement to avoidance of double taxation agreement
  • Trade in goods
  • Mutual recognition agreements
  • Trade in services
  • Movement of citizens
  • Education
  • Media
  • Developments


Govt takes ‘very serious view’ of falsehoods on Ceca that try to divide Singapore: Chan Chun Sing

The Government takes a “very serious view” of online falsehoods being circulated on Singapore’s free trade agreements (FTAs), in particular its FTA with India, said Trade and Industry Minister Chan Chun Sing on Saturday (Nov 9).

“These postings and messages are circulated to stoke the fears of Singaporeans in times of economic uncertainties. And some go even further to play the racial card to divide our society,” he told reporters at a doorstop interview at The Treasury. “The government takes a very serious view of these attempts to rattle Singaporeans and divide our society.” He did not elaborate on the source of these postings and messages nor say what action, if any, the Government would take against them. He did note however that Singapore’s network of FTAs has created better jobs for Singaporeans.

Since 2005, the year Singapore signed the Comprehensive Economic Cooporation Agreement (Ceca) with India, the number of PMET (Professionals, Managers, Executives and Technicians) jobs for Singaporeans has grown by 400,000, he said.


WP’s Jamus Lim points out reasons why CECA benefits India more than Singapore

Workers’ Party (WP) Member of Parliament (MP) Jamus Lim took to Facebook on Friday (19 March) to pen down reasons why the India-Singapore Comprehensive Economic Cooperation Agreement (CECA) offers more gains for India rather than Singapore.

During WP’s recent house visit at 326C Anchorvale Road, he met a resident who voiced his unhappiness towards the CECA. “Since its conclusion in 2005, there has been much sturm und drang about the merits of the CECA deal between Singapore and India. These have focus principally on the sense—one shared by Mr Singh—that the deal has been unfair for Singaporean workers, and has led to both a flood of Indian nationals, alongside a loss of local opportunities,” said Mr Lim.

Given that the Sengkang GRC MP is also an international economist, he expressed that he understands that trade deals are rarely “unequivocal”, and that there will often be a loser in a trade deal and that the benefits depend on conditions faced by both parties.


Jamus Lim 8h

Last night our house visit team was able to complete the whole of 326C #Anchorvale. We met with many families, who shared with us their thoughts about a number of local and national issues. One resident, Mr Singh, was especially distraught by the India-Singapore Comprehensive Economic Cooperation Agreement (CECA).

Since its conclusion in 2005, there has been much sturm und drang about the merits of the #CECA deal between Singapore and India. These have focused principally on the sense—one shared by Mr Singh—that the deal has been unfair for Singaporean workers, and has led to both a flood of Indian nationals, alongside a loss of local opportunities.

As an international economist, I recognize that the support for trade liberalization is seldom an unequivocal one, but based on how, on net, the benefits outweighed the costs. This not only means that there would generally be losers in any trade deal, but also that the extent of gains would depend on the specific conditions faced by both parties to any agreement.


S’pore Has Talent Shortage & India Is A Talent Surplus Country, Says Tommy Koh On CECA
Tommy Koh Says CECA Brought Many Benefits To Singapore & India

Last month, a video showing a condo resident, who is an Indian national, yelling at a security personnel over a $10 parking fee had gone viral.

While members of the public were outraged by the resident’s ‘entitled’ behaviour, the incident also thrust the Comprehensive Economic Cooperation Agreement (CECA) into the spotlight.

Some netizens criticised the agreement for “opening the floodgates” for Indian nationals to migrate to Singapore and compete with locals for jobs.


CECA does not give Indian nationals automatic access to citizenship, PR status, employment: MTI

The Singapore-India Comprehensive Economic Cooperation Agreement (CECA) does not automatically grant Indian nationals access to Singapore citizenship, permanent residence or employment here, the Ministry of Trade and Industry (MTI) said on Thursday (Aug 27).

"It is not true that under CECA, Indian nationals can come to Singapore and become permanent residents and citizens. There is no such provision in CECA," said an MTI spokesperson.

"It is also not true that CECA requires Singapore to automatically grant Employment Passes to PMEs from India wanting to work here," said the spokesperson, referring to professionals, managers and executives (PMEs).

read more

People’s Voice Lim Tean calls out Trade & Industry Minister for a debate on CECA

People’s Voice founding leader Lim Tean has called out Trade and Industry Minister Chan Chun Sing to debate the merits of the Singapore-India Comprehensive Economic Cooperation Agreement (CECA), countering the minister’s assertion that the agreement hasn’t robbed Singaporeans of jobs.

On Saturday, Mr Chan had said in an interview with Channel NewsAsia that CECA does not grant Indian nationals unconditional access into Singapore or immigration privileges. Mr Chan also said that any claim about how the agreement has cost Singaporeans’ job opportunities is merely a move to stoke fear in times of economic uncertainties.

These claims are false, asserted Mr Chan. Mr Chan said, “Indian professionals, like any other professionals from other countries, have to meet MOM’s (Ministry of Manpower’s) existing qualifying criteria to work in Singapore. This applies to Employment Pass, S Pass, and work permit.

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CECA does not grant Indian nationals unconditional access, immigration privileges: Chan Chun Sing

Trade and Industry Minister Chan Chun Sing said on Saturday (Nov 9) that the Singapore-India Comprehensive Economic Cooperation Agreement (CECA) does not grant Indian nationals unconditional access into Singapore or immigration privileges.

Claims that the bilateral agreement has cost job opportunities for Singaporeans aim to stoke fears in times of economic uncertainties, said Mr Chan.

Mr Chan's comments come after an expletive-laden video surfaced online, showing a man lashing out at a security guard at the Eight Riversuites condominium.

related: S'pore remains committed to concluding review of India trade pact: MTI

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Gathering at Hong Lim Park to voice out against CECA & 6.9 mil population

Gilbert Goh, founder of Transitioning.org and organiser of protests against the Population White Paper (PWP) and various other events such as Commemoration of May Day, is organising a gathering at Hong Lim Park this Sunday (3 Nov) from 4pm to 7pm.


The gathering will act as a platform for Singaporeans to pen their thoughts on any burning issues, especially on Singapore’s Comprehensive Economic Cooperation Agreement (CECA) and 6.9 million population plan, in light of the recent incident of Ramesh Erramalli - a foreign talent employee at J.P. Morgan who was caught on video berating security officers.

Announcing this news on his Facebook page on Thursday (30 Oct), Mr Goh called for concerned Singaporeans to “flood the park with our united unhappiness at CECA, Ramesh and 6.9 mil population plan”.

Chee Soon Juan reiterates concern over CECA as unemployment rate climbs

Singapore Democratic Party (SDP) secretary-general Chee Soon Juan has reiterated his concern over the Comprehensive Economic Cooperation Agreement (CECA) between Singapore and India, in the wake of the viral incident involving an India-born condo resident berating a security guard.

While the condo resident – who is now a naturalised Singapore citizen working in a top position at JP Morgan in Singapore – has since apologised to the security guard, the incident thrust CECA into the spotlight.

Progress Singapore Party chief Tan Cheng Bock’s promise to call for a review of CECA and Workers’ Party politician Gerald Giam’s parliamentary exchange with ex-Trade and Industry Minister Lim Hng Kiang over CECA began trending on social media, after the video went viral.

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Tan Cheng Bock’s promise to call for a review of CECA agreement trends online

A video of Dr Tan Cheng Bock promising to call for a review of the CECA agreement is now re-circulating online. Although the clip is a few months old, it has received over 24,000 views and about 1,000 reactions on Facebook in a matter of hours.

In the clip that was taken at a PSP event in August, Dr Tan said:
  • “We need to ensure job priority for Singaporeans…PSP will call for a review of the India-Singapore Comprehensive Economic Cooperation Agreement, known as CECA.
  • “Now this agreement, you must understand, was negotiated by our current Deputy Prime Minister Heng Swee Keat…Among the terms of CECA: allow the free movement of professionals in 127 sectors to enter and work in Singapore.
  • “This has brought a lot of unhappiness with Singaporeans PMETs who feel vulnerable in their jobs and are anxious for the future.
  • “We need the Government to publish a balance sheet for CECA, to show how Singapore and Singaporeans have benefited from this agreement, how many local jobs have gone to Indian professionals and how many Singaporeans have gone to India. We need accountability.”

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CECA 101: TISG answers FAQs on the trade agreement between Singapore & India
CECA, or the India-Singapore Comprehensive Economic Cooperation Agreement, is a free-trade pact between the two countries, which was carried out for the purpose of strengthening bilateral trade. Below is a comprehensive overview of the agreement

In a nutshell, CECA, or the India-Singapore Comprehensive Economic Cooperation Agreement, is a free-trade pact between the two countries, which was carried out for the purpose of strengthening bilateral trade.

It was first discussed in 2002 after a meeting in Singapore between then Prime Minister Goh Chok Tong and Indian Prime Minister Atal Bihari Vajpayee. After the meeting of the two heads of state, a Joint Study Group (JSG) was formed. “The JSG concluded that the CECA between India and Singapore would provide significant benefits for both countries, in terms of the potential for increased trade and investment, and through economic cooperation.”

A Declaration of Intent for the CECA was signed in 2003, followed by 13 formal rounds of negotiations over the next two years. The team from India was led by two successive secretaries of their Department of Commerce. Singapore’s side was led by Heng Swee Keat, who was then the Permanent Secretary for Trade and Industry as well as the Managing Director of the Monetary Authority of Singapore (MAS), and who is now Singapore’s Deputy Prime Minister and Finance Minister.

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Heng led team in concluding CECA with India opening up SG for Indian FTs to work in
On 29 June 2005, India and Singapore signed the India-Singapore Comprehensive Economic Cooperation Agreement (CECA). This free trade agreement not only enables Singapore and India to trade goods freely, it also allows professionals to work in each other country more easily

The CECA was concluded after 13 rounds of negotiation and the Singapore’s side was led by none other than Heng Swee Keat, the current PM-in-waiting, who was then Permanent Secretary for Trade and Industry. Heng and his team essentially did the ground work together with their Indian counterparts. They then presented their proposals to the politicians for approval. Some of the areas covered by CECA include: Improved Avoidance of Double Taxation Agreement, Trade in Goods, Customs, Investment, Trade in Services, Intellectual Property, etc.

However, controversial ones include concluding further Mutual Recognition Agreements (MRAs) so as to facilitate the freer movement of professionals between Singapore and India. It helps to recognise each other’s education and professional qualifications so that Indian and Singaporean professionals from the following five professions could be able to practise in each other country:
  • Accounting and auditing
  • Architecture
  • Medical (doctors)
  • Dental
  • Nursing

Already, Singapore now recognises degrees of Indian doctors and nurses from certain Indian universities.

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SIGNING OF THE INDIA-SINGAPORE COMPREHENSIVE ECONOMIC COOPERATION AGREEMENT

Indian Prime Minister Manmohan Singh and Prime Minister Lee Hsien Loong today signed the India-Singapore Comprehensive Economic Cooperation Agreement (CECA).  This landmark agreement is India's first ever CECA and is also the first comprehensive economic pact between Singapore and a South Asian country.

The CECA was successfully concluded after 13 formal rounds of negotiation, and encompasses trade in goods, trade in services, investment protections and other features.  The CECA covers Mutual Recognition Agreements that will eliminate duplicative testing and certification of products in specific sectors, as well as cooperation chapters that will encourage and facilitate bilateral cooperation in several sectors. The CECA has also encompassed a review to the existing Avoidance of Double Taxation Agreement between India and Singapore.

The Agreement is a strategic compact between the two countries that will further enhance bilateral ties by catalysing the already growing flows of trade, investment, ideas and people.

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India, Singapore formalise mutual recognition agreement in nursing

India has formalised a Mutual Recognition Agreement (MRA) in nursing with Singapore which would allow nurses trained in seven nursing institutions across India to gain employment in the South-East Asian country. “This has paved way for our healthcare service providers to institutionally access markets abroad. It will further open up doors for India to enter into similar mutual recognition arrangements with other countries,” according to an official release circulated by the Commerce Ministry on Friday.


India and Singapore concluded the second review of India-Singapore Comprehensive Economic Cooperation Agreement (CECA) which was officially announced on Friday during Prime Minister Narendra Modi’s visit to Singapore. “Both countries could reach a common understanding on various unresolved issues in the second review which were pending since 2010. In the review, India and Singapore agreed to expand the coverage of tariff concessions, liberalise the rules of origin and incorporate new product specific rules (PSRs) to further enhance trade between the two countries,” the release added.


The India-Singapore CECA was ratified in 2005. Although the two sides had also agreed to sign MRAs in four other areas including architecture, accountancy, dentistry and medical (doctors), there has not been much progress in these.


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Singapore blocks visas for Indian IT professionals

While the focus has been on the US, visas for IT professionals to work in Singapore have dropped  “to a trickle”, prompting the government to put on hold the review of the Comprehensive Economic Cooperation Agreement (CECA) citing violation of the Trade Act.

With Indian companies being advised to hire local talent, they are looking at relocating some of their operations to other countries in the region.

From HCL and TCS, which were the early movers to Singapore the list has expanded to include Infosys, Wipro, Cognizant and L&T Infotech.

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Singapore First: Quietly shutting the door on Indian techies and other foreign workers
Too crowded. (Reuters/Edgar Su)

Nearly 10,000 miles away from the anti-immigrant climate in Trump’s America, an island nation has been clamping down on Indian tech workers as part of its efforts to make sure companies give locals a fair shake, and to address concerns about overpopulation.


Singapore, which has about 5.6 million people and a workforce nearly 40% made up of nonresidents, has been ramping up measures to ensure that firms have a “Singapore core.” Officials have noted that foreign workers tend to be more common in certain industries, including food-and-beverage and technology. While Singapore hasn’t made any statements singling out Indian workers or firms, India’s IT trade industry body says it’s seen a definite change in the visa regime.


“They realized that the total number of people they have… far exceed the optimal level [the country can accommodate],” Gagan Sabharwal, director of global trade development at Nasscom, told Quartz. “That’s when they started shutting the tap down by making it more expensive, making it more cumbersome for companies.” Nasscom, the National Association of Software and Services Companies, has noted a reduction in visas over several years, but says things have become particularly tough since last year.


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INDIA MAY TAKE SINGAPORE TO WTO FOR VIOLATION OF CECA


The new measures taken by Singapore to control the influx of foreigners working in Singapore ‘has irked India as the new law does not give India a preferential treatment incorporated in the Comprehensive Economic Partnership Agreement (CECA) between the two countries, operational since 2005. This stance by the Singapore Government is expected to affect Indians working as middle-level managers, executives and technicians.


Speculation is rife that India might take up the issue with World Trade Organization’s (WTO) dispute settlement body. However, according to Singapore such a decision was imperative in the interest of the natives as the share of the foreign workforce is rising very rapidly.

“… I do not think we have contravened our commitments in the WTO or the CECA. Moreover, this is not specifically targeted to any one country. We remain very open to foreign talent,” a senior Singapore government official told Business Standard…. According to Indian officials involved in the negotiations, this is a violation of the services trade agreement under CECA. This will also adversely affect Indians who are working there as it might lead to job losses, especially for the middle level workers.

India has submitted a request to Singapore for addressing the matter but has not received a formal communication yet.

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Govt decries CECA violation by Singapore


Those of you planning to make it big in Singapore might be in for a setback. Singapore recently made certain changes to its Employment Pass Framework law to reduce inflow of foreign workers significantly to create more job opportunities for local professionals. The move is expected to impact even those Indians working there at present across various sectors.


The amendments, made on a proposal by its Ministry of Manpower, has armed the Singapore government to bring down the foreign share of the total workforce to around one-third while encouraging employers to invest in productivity in return for incentives in the form of tax breaks. The move came as a recent Singapore's policy paper predicted that its population would grow by 30 per cent to 6.9 million by 2030, with immigrants making up nearly half that figure. The paper led to demonstrations in Singapore yesterday, a rare happening in the country, in protest against rise in immigrants.


The step has irked India as the new law does not give India a preferential treatment incorporated in the Comprehensive Economic Partnership Agreement (CECA) between the two countries, operational since 2005. This stance by the Singapore Government is expected to affect Indians working as middle-level managers, executives and technicians.'


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India-S'pore pact review 'put on hold'

Singapore’s Minister for Trade & Industry (Trade) Lim Hng Kiang (left) shaking hands with High Commissioner Jawed Ashraf at the reception to celebrate India’s 68th Republic Day held at the Shangri-La Hotel on Jan 26, 2017. FOTO: HIGH COMMISSION OF INDIA

India has put on hold a review of the Comprehensive Economic Cooperation Agreement (Ceca) in response to cutbacks in visa approvals for Indian software professionals bound for Singapore, according to a report in the Times of India newspaper.

Ceca is a free trade pact with Singapore & the review is meant to look at areas where the agreement could possibly be expanded.

The Times of India, quoting unnamed sources, said the government feels Singapore violated the pact by restricting the movement of software professionals. The Indian Ministry of Commerce did not respond to queries from The Straits Times on whether the agreement had been put on hold by India.

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After US, Singapore tightens work visas, advises Indian IT cos to hire more locals


After the US, Indian information technology professionals are now finding it tough to find work in Singapore, with the country advising Indian companies there to hire more locals, the Times of India reported today.


Work visas for Indian IT professionals have almost stopped and the push to hire more locals has led Indian companies to consider shifting their operations to other countries in the region. To add to hurdles on issuances, the visa authorities at Singapore are said to be demanding compliance with certain economic pre-requisites via a test called the economic needs test (ENT). The test is being conducted despite clear instructions from the Comprehensive Economic Cooperation Agreement (CECA) that "no such test be done on agreed services".


Due to such violation of the trade pact, the Indian government has had to defer the review of the CECA. The government has also been forced to decide against expanding the scope of goods where import duties would be cut unless the concerns of domestic industry, both IT and banking, are addressed.


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India unhappy with restrictions


Singapore’s move to placate its locals is seen as a stumbling block to Indian workers who are looking for jobs in the republic.


INDIA may soon put a little international dimension into the growing rift over immigration between Singaporeans and their government.


It has complained that recent laws in Singapore – aimed at placating Singaporeans – were imposing restrictions on Indian professionals who intend to work in the city.


This, it says, is a violation of a bilateral free trade pact, the service portion of which grants special preferential treatment to Indian workers. The two countries signed the pact, called Comprehensive Econo­mic Partnership Agreement (CECA), in 2005.


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Investors unsettled as Singapore and India fight over futures

WHAT started as a business disagreement between 2 Asian exchanges has become a source of growing concern for international investors.


A fight between Singapore Exchange Ltd & National Stock Exchange of India Ltd over derivatives contracts is threatening to end a popular way of hedging Indian shares. The battle, which went to court in Mumbai this week, has left traders scrambling to find new ways to manage their exposure to the US$2.3 trillion market, one of Asia's biggest.


The dispute broke into the open in February after NSE said it was axing licensing agreements with overseas bourses. India is trying to discourage offshore trading and promote a tax-free trading zone in Prime Minister Narendra Modi's home state, part of a broader effort by Asian nations to keep control of capital while further integrating into the global financial system. That's not a combination that appeals to money managers.


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Mumbai exchange sues Singapore bourse to stop listing of Indian futures


Singapore Exchange has been sued by the National Stock Exchange of India that wants to stop SGX from selling and trading some Indian derivative products.


NSE brought the case in a Bombay High Court on Tuesday, which led the shares in the Singapore bourse to slide to a one-month low, as the legal tussle casts a shadow over the SGX's trading outlook. NSE wants to block SGX from listing new Indian equity futures and options. It accuses SGX of drawing liquidity away from Indian bourses.


"SGX has been notified by the [NSE] of an application made in the Bombay High Court for an interim injunction on our new products," SGX said in a Tuesday press release. Ahead of the announcement, SGX suspended the trading of its own shares. When trading resumed in the morning, its stock fell 2.3% to a one-month low of 7.46 Singapore dollars apiece ($5.5).


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NSE sues Singapore Exchange in dispute over launch of new futures contracts


The National Stock Exchange of India Ltd. sued Singapore Exchange Ltd. in a Mumbai court, escalating a dispute that threatens to leave international investors without one of the world’s most widely-used offshore futures contracts.


NSE is trying to stop its Singapore counterpart from launching derivatives that could replace the Nifty 50 contracts that have traded in the city-state for 18 years and are used to hedge positions that foreigners take in one of Asia’s biggest equity markets. Indian exchanges ended agreements that allowed offshore derivatives in February, leaving SGX and others scrambling.


“SGX has been notified by NSE of an application made in the Bombay High Court for an interim injunction on our new products,” SGX said in a statement Tuesday. “We have full confidence in our legal position and will vigorously defend this action.”


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Biggest India Stock Exchange Sues Singapore Bourse


The National Stock Exchange of India Ltd sued Singapore Exchange Ltd in a Mumbai court, escalating a dispute that threatens to leave international investors without one of the world’s most widely used offshore futures contracts.


NSE is trying to stop its Singapore counterpart from launching derivatives that could replace the Nifty 50 contracts that have traded in the city-state for 18 years. Global funds use these instruments to hedge their positions in one of Asia’s biggest equity markets. Indian exchanges ended agreements that allowed offshore derivatives in February, leaving SGX and others scrambling.


“This is a big mess,” said David Shin, Asia head of global equity derivative sales at TD Securities in Singapore. “I can’t see how SGX would go through with the launch when this is in the air. There’s a lot of gray here, because if investors do trade the new contract knowing this legal case is out there, is there legal liability that cuts through to the investors of the new contracts?”


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Singapore blocks visas for Indian IT professionals


While the focus has been on the US, visas for IT professionals to work in Singapore have dropped “to a trickle”, prompting the government to put on hold the review of the Comprehensive Economic Cooperation Agreement (CECA) citing violation of the trade pact.


With Indian companies being advised to hire local talent, they are looking at relocating some of their operations to other countries in the region. From HCL and TCS, which were the early movers to Singapore, the list has expanded to include Infosys, Wipro, Cognizant and L&T Infotech. “This (visa problem) has been lingering for a while but since early-2016, visas are down to a trickle. All Indian companies have received communication on fair consideration, which basically means hiring local people,” Nasscom president R Chandrashekhar told TOI. For all practical purposes, visas have stopped for our people, added another industry executive. Prompted by problems for IT and the banking sector — where there is lack of transparency on the capital requirement, the Indian government has now decided against expanding the scope of goods where import duties would be cut unless the concerns of domestic industry are addressed.


Sources told TOI that Singapore authorities were insisting on what is called “economic needs test” (ENT), which requires compliance with certain economic criteria, to deny access to Indian professionals. “They are doing it despite the CECA clearly stating that there will be no ENT or quotas on agreed services. This is a violation of the agreement,” said an Indian officer, who did not wish to be identified due to the ongoing negotiations. 


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India - Singapore Comprehensive Economic Cooperation Agreement (CECA)

Key Benefits:
  • Tariff reduction/elimination for 81% of Singapore’s exports to India make Singapore-originating products more competitive and allow Singapore exporters to increase their exports to India’s large consumer market. Products that benefit include food products, plastics, electronics, pharmaceuticals, and mechanical appliances.
  • India has enhanced its market access commitments for Singapore service providers. These commitments provide Singapore services companies with an opportunity to build market expertise and grow by international expansion. The sectors with enhanced commitments include finance, engineering, tourism, logistics, construction, medical, research and development and computer services.


Govt clarifies CECA doesn’t allow Indian nationals free entry to S’pore – but netizens claim they’ve seen massive hiring of Indian nationals in workplace

Despite two ministerial statements have been delivered to clarify that the India-Singapore Comprehensive Economic Cooperation Agreement (CECA) does not allow Indian nationals free entry to Singapore, some netizens remain sceptical as they had personally experienced an influx of Indian nationals being hired in their previous workplaces. Earlier on 6 July, Health Minister Ong Ye Kung said in Parliament that the Free Trade Agreements (FTA) and CECA have not curtailed the power of immigration authorities to regulate the entry of foreign professionals, managers, executives, and technicians (PMETs) into Singapore under such agreements.

Mr Ong, who delivered his ministerial statement on the issues of FTAs and CECA in the context of his background as a former trade negotiator in the civil service, said that the Government “retains full rights” to determine who can enter, live, work, and obtain permanent resident status in Singapore. He also dismissed Progress Singapore Party’s (PSP) claim that the 127 categories of professionals listed in CECA allow Indian nationals to flock to Singapore to work freely, saying that all foreign PMETs have to meet all of the relevant criteria set by the Government to enter for employment purposes.

Manpower Minister Tan See Leng, on the other hand, revealed that there were 4,200 intra-corporate transferees (ICTs) working in Singapore last year, of which 500 were brought in from India. “None of our FTAs, including the India-Singapore Comprehensive Economic Cooperation Agreement (Ceca), gives intra-corporate transferees unfettered access to our labour market,” said the Minister.