the working hours point aside, i would suggest that a potentially bigger issue is that your employer is not offering you an expat contract.

As you are already employed by this company, this sounds unusual to me.

Expat contracts often have valuable benefits, and can subsequently be converted into local contracts if both parties want this.

You should clarify what 'local status' means and why they want you to have a local contract and be aware of what this means for you.

Best of luck!