India-Singapore Comprehensive Economic Cooperation Agreement (2005)

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The Comprehensive Economic Cooperation Agreement (CECA) is a controversial Free Trade Agreement between Singapore and India to strengthen bilateral trade. It was signed on 29 June 2005.[1]

After the signing, the India-Singapore Parliamentary Forum and the Singapore-India Partnership foundation with active support from the Federation of Indian Chambers of Commerce and Industry (FICC), the Confederation of Indian Industry (CII) and the Singapore Business Federation (SBF) was organised to promote trade, economic development and partnerships.[2][3][4] The CECA eliminated tariff barriers, double taxation, duplicate processes and regulations and provided unhindered access and collaboration between the financial institutions of Singapore and India.[2][3]

The CECA also enhanced bilateral collaboration related to education, science and technology, intellectual property, aviation, information technology, and financial fields.[2][3] Singapore has invested in projects to upgrade India's ports, airports and developing information technology parks and a Special Economic Zone (SEZ).[2] India has become Singapore's 4th biggest tourist destination and more than 650,000 Indians visited Singapore in 2006. Both nations have worked to collaborate on aviation, aerospace engineering, space programmes, information technology, biotechnology and energy.[2]

CECA Review

Singapore and India successfully concluded the second review of the India–Singapore Comprehensive Economic Cooperation Agreement (CECA) on 1 June 2018 in the presence of India Prime Minister Narendra Modi and Singapore Prime Minister Lee Hsien Loong.[5] It allows for the movement of four types of business people between Singapore and India. The second review of CECA was concluded with no change to the chapter on movement of people.[6]

In response to claims that surfaced in early 2016 that Singapore had backtracked on its commitment on CECA by blocking Indian IT professionals seeking work visas, and that India had put on hold further liberation of trade in response,[7] a spokesman from India's Commerce Ministry confirmed that India had not put the CECA on hold and it continued (to be) in force. Singapore also said it had not received any official notification from the Indian government that the review of the CECA had been put on hold.[8]

In September 2018, India and Singapore formally launched the third review of CECA which focuses on trade facilitation, e-commerce and customs.[9]

All of the Free Trade Agreements Singapore has signed are available at Enterprise Singapore's website.[10]

Agreement

LIST OF PROFESSIONALS IN ANNEX 9A
S/N Occupational Title
1 System Designer & Analyst
2 Network System & Data Communication Analyst
3 Software Engineer
4 Computer and Information Systems Manager
5 Computer Operations and Network Manager
6 Application Programmer
7 Systems Programmer
8 Multi-media Programmer
9 Network System & Database Administrator
10 Database Administrator
11 Information Technology Auditor
12 Information Technology Security Specialist
13 Information Technology Quality Assurance Specialist
14 Building Architect
15 Interior Architect
16 Landscape Architect
17 Town Planner
18 Civil Engineer (General)
19 Dredging Engineer
20 Dock and Harbour Construction Engineer
21 Structural Engineer (General)
22 Building Construction Engineer
23 Sewerage & Sanitary Engineer
24 Soil Mechanic & Piling Engineer
25 Trenchless Technology Engineer
26 Quantity Surveying Engineer
27 Transportation and Highways Engineer
28 Electrical Engineer (General)
29 Electromechanical Equipment Engineer
30 Electrical Traction Engineer
31 Power Generation & Distribution Engineer
32 Lift Engineer
33 Electronics Engineer (General)
34 Telecommunications Engineer
35 Computer Engineer
36 Computer Systems Engineer
37 Computer Applications Engineer
38 Computer Hardware Design Engineer
39 Semi-conductor Engineer
40 Audio & Video Equipment Engineer
41 Instrumentation Engineer
42 Mechanical Engineer (General)
43 Industrial Machinery & Tools Engineer
44 Marine Engineer
45 Ship Construction Engineer
46 Naval Architect
47 Aeronautical Engineer
48 Automotive Engineer
49 Air-conditioning & Refrigeration Engineer
50 Chemical Engineer (General)
51 Chemical Engineer (Petroleum)
52 Chemical Engineer (Petrochemicals)
53 Manufacturing Engineer (General)
54 Production Engineer
55 Automation Engineer
56 Robotic Engineer
57 Biomedical Engineer
58 Biochemical Engineer
59 Biotechnology Engineer
60 Materials Engineer
61 Industrial Health, Safety & Environment Engineer
62 Petroleum & Natural Gas Engineer
63 Metallurgist
64 Quantity Surveyor
65 Ceramics and Glass Technologist
66 Food and Drink Technologist
67 Dairy Technologist
68 Leather Technologist
69 Textile Technologist
70 Oil Technologist
71 Pulp, Paper, Paint and Plastics Technologist
72 Biologist (General)
73 Botanist
74 Zoologist
75 Anatomist
76 Biochemist
77 Physiologist
78 Neurologist
79 Medical Pathologist
80 Clinical Pathologist
81 Veterinary Pathologist
82 Pharmacologist
83 Animal Scientist
84 Microbiologist
85 Bacteriologist
86 Immunologist
87 General Physician
88 General Surgeon
89 Specialised Surgeon
90 Anaesthetist
91 Psychiatrist
92 Obstetrician & Gynaecologist
93 Paediatrician
94 Endocrinologist
95 Dermatologist
96 Ophthalmologist
97 Cardiologist
98 Radiologist
99 Industrial Physician
100 Medical Service Physician (School)
101 Public Health Physician
102 Dentist (General)
103 Specialised Dentist
104 Veterinarian
105 Veterinary Epidemiologist
106 Pharmacist (Dispensing)
107 Other Pharmacists
108 University Lecturer
109 Polytechnic Lecturer
110 Accountant
111 Cost Accountant
112 Company Secretaries (who are Accountants)
113 Taxation Professionals (who are Accountants)
114 Auditor (Accounting)
115 Career Adviser
116 Financial Analyst
117 Credit Analyst
118 Fund Manager
119 Treasury Manager
120 Market Research Analyst
121 Advertising Account Executive
122 Economist
123 Sociologist
124 Anthropologist
125 Historian
126 Political Scientist
127 Psychologist

[11]

Statistic

According to Singapore's Manpower Minister at the time, Tan See Leng, the proportion of employment pass (EP) holders in Singapore who are Indian nationals has doubled from 13% to 26% between 2005 and 2020.[12]

Additionally, a quarter of the 177,100 employment pass (EP) holders in Singapore hail from India.

We don't have enough locals to fill the jobs available. In the infocomm sector alone today, 6,000 jobs currently remain unfilled — Tan See Leng, 6 July 2021

Tan claim that the larger increases in Indian EP holders compared with other nationalities, is driven by "rapid growth in the digital economy and finance, as every sector seeks tech talent in order to be digitally enabled". He also claim that Singapore did not have enough locals to fill the job available.[13]

Controversy

The CECA is one of the most controversial Free Trade Agreement Singapore has ever signed since its independence as compared with other countries. Opposition parties and supporters argue that it only marginally boosts Singapore's already-high Gross Domestic Product (GDP) for its size while at the expense of being "one-sided" and "non-beneficial" towards Singaporeans in general.[14] Others also added that it has become a point of grievance for locals who believe that a "high influx of Indian professionals has stolen their jobs" and is "crowding out the local society".

In addition, there are integrity issues brought by the "professionals" from India such as the widespread fake qualifications in India.[15] Many of whom that possess such qualifications have managed to secure employment in Singapore. The "professionals" from India have also caused many social problems in Singapore due to their negative behaviours shown i.e. being self entitled and selfish, behaving impolitely and arrogantly and disrespecting the locals. This has angered many local Singaporeans.[14][16]

Fake education qualification issues

In April 2017, two men from India were charged in Singapore over submitting fake educational certificates for their work pass applications. Singapore's Ministry of Manpower (MOM)[17] verified with the academic institutions and found that the certificates were forged.[18]

In February 2021, the Ministry of Manpower was reportedly investigating 15 work pass holders who had declared qualifications from India's Manav Bharti University in their work pass applications. The university had reportedly sold 36,000 fake degrees over 11 years according to the Times of India (TOI).[19]

In July 2021, two Indian nationals work pass holders were imprisoned for submitting false qualifications to the MOM in their work pass applications.[20]

Political responses

In 2020, the Ministry of Trade and Industry (MTI) released a statement identifying that Singaporeans are "understandably concerned" with competition from foreign professionals, managers and executives (PMEs) due to the current bleak economy and employment situation. However, it added that it was also "misleading" to assert that the number of Indian PMEs, especially intra-corporate transferees, as being solely or largely to CECA. MTI also refuted that "None of our free trade agreements, including CECA, obliges us to automatically grant Employment Passes (EP) to any foreign national." Additionally, "All foreign nationals applying for Employment Passes must meet our prevailing criteria, and all companies must comply with rules on fair hiring".[21]

The topic of FTAs and CECA was debated during the 2020 Singaporean general elections between both the governing People's Action Party (PAP) and various opposition parties, most notably the Progress Singapore Party (PSP).[22][23][24] Tan Cheng Bock, a former PAP MP and founder of the PSP, promised to call for the review of CECA if elected, especially on one of the terms which allows the free movement of Indian workers in at least 127 sectors to enter and work in Singapore.[25]

In 2020, Leong Mun Wai, as a Non-constituency Member of Parliament (NCMP) of the PSP, spoke in Parliament, mentioning as to how "deeply disappointed" he was that DBS Bank, a Singaporean multinational bank, did not have a "home-grown" Singaporean-born chief executive as the bank's CEO.[26][27][28] Piyush Gupta was an Indian national when appointed, becoming a Singaporean citizen shortly thereafter, possibly making him a beneficiary of CECA.[29]

Footnotes

  1. Overview of India (CECA). International Enterprise Singapore (2005).
  2. 2.0 2.1 2.2 2.3 2.4 IPCS Special Report - India-Singapore Relations. Institute of Peace and Conflict Studies.
  3. 3.0 3.1 3.2 India, Singapore ink pact. Asia Times (2005-07-02).
  4. India-Singapore Economic and Commercial Relations. Federation of Indian Chambers of Commerce and Industry.
  5. Conclusion of the second review of the India-Singapore Comprehensive Economic Cooperation Agreement.
  6. Can firms hire Indian professionals in Singapore without valid work passes, or without adhering to fair employment guidelines?.
  7. Singapore blocks visas for Indian IT professionals - Times of India ►.
  8. Committed to CECA review with India, says Singapore, 6 April 2017.
  9. Third review of landmark India-Singapore economic deal to focus on trade facilitation, e-commerce and customs (1 September 2018).
  10. FTAs Singapore Has Signed (15 September 2019).
  11. https://www.enterprisesg.gov.sg/-/media/esg/files/non-financial-assistance/for-companies/free-trade-agreements/CECA_India/Legal_Text/Chapter9_List_of_Professionals_Annex_9A
  12. https://economictimes.indiatimes.com/nri/migrate/number-of-indian-professionals-in-singapore-up-due-to-tech-talent-demand-not-favourable-treatment-govt/articleshow/84170302.cms?from=mdr
  13. https://sg.news.yahoo.com/one-quarter-singapore-177100-employment-pass-holders-india-tan-see-leng-083622384.html
  14. 14.0 14.1 What the heck is CECA & should you be angry at it, explained (10 November 2019).
  15. Work pass holders get jail for submitting false degree qualifications.
  16. Are Singaporean workers really losing jobs to Indian expats due to CECA free-trade deal? (12 September 2020).
  17. In Singapore, The Occupational Safety Department of the Ministry of Manpower (MOM) approves, accredits, and registers certain organizations to perform specific duties.
  18. https://www.straitstimes.com/singapore/three-jailed-10-weeks-for-using-fake-certificates-to-apply-for-work-passes
  19. https://www.straitstimes.com/singapore/15-work-pass-holders-under-investigation-for-links-to-indian-fake-degree-scandal
  20. https://www.channelnewsasia.com/singapore/manav-bharti-india-work-pass-holders-jail-false-qualifications-2058411
  21. Netizens remain sceptical over Government's clarification that CECA doesn't allow Indian nationals to become citizens of Singapore (28 August 2020).
  22. MTI continues to defend CECA: Less than 5% of EP holders are intra-corporate transferees (12 September 2020).
  23. Govt takes 'very serious view' of falsehoods on CECA that try to divide Singapore: Chan Chun Sing (9 November 2019).
  24. As Chan Chun Sing defends CECA, we need to ask if CECA works for the majority of Singaporeans or just the few at the top? (1 September 2020).
  25. Tan Cheng Bock's promise to call for a review of CECA agreement trends online.
  26. GE2020: PSP chooses assistant secretary-general Leong Mun Wai and vice-chairman Hazel Poa as NCMPs (14 July 2020).
  27. GE2020: PSP's Hazel Poa and Leong Mun Wai will take up NCMP seats, CNA, 14 July 2020.
  28. Press Statement on Election of Non-Constituency Members of Parliament.
  29. Piyush Gupta was still a foreigner when he received CEO appointment letter from DBS (5 September 2020).