Under the new hiring guidelines, known as the Fair Consideration Framework, firms with vacancies must first advertise positions to locals for two weeks before they can apply for an employment pass to bring in foreign employees. These job ads must be posted to a new jobs bank administered by the Singapore Workforce Development Agency. If the company finds that after a fair, merit-based consideration process no local is suited for the post, only then can it apply for an EP. 

The new rules take effect 1 August 2014.

The changes may affect the financial services industry, especially with Singapore being a key financial hub for the Asian region and home to many international banking headquarters. At present, about 40 per cent of the city-state's 5.3 million population are foreigners. 

"Many Singaporeans we spoke to understand the need for a diverse workforce. The framework is not about 'hire Singaporeans first or hire Singaporeans only'. What the government is doing is to help them get a fair opportunity. We will continue investing in our continuing education and training infrastructure so that Singaporeans can upgrade their skills and remain competitive in the workplace," said Tan Chuan-Jin, acting minister for manpower, in a statement.