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Singapore Gears Up For Manpower Policies Reform

So much talk has transpired recently with regards to the implementation of new requirements for labour passes for the country’s foreign workforce. The Ministry of Manpower (MOM) is looking into limiting the number of passes that’s going to be issued in the near future. This is due to the country’s growing population of expats in the country.

The changes are going to be implemented early next year, according to the acting Manpower Minister Tan Chuan Jin. Aside from changes with the requirements for the work passes, the number of dependents allowed for labor pass holders would also be changed.

Specifically, the MOM will be reviewing the Singapore Pass and Employment Pass applications the following year. Last September, salary requirements have been increased by the government for workers who would want to apply for Dependant Passes from SG $2,800 to SG $4,000.

Singapore expats with Personalised Employment Passes (PEPs) would also be affected by the reform as their minimum salary requirements would be raised to SG $12,000 monthly. The expat worker should also be able to present a pay slip indicating at least SG 18,000 for the previous month if applying for a PEP. The PEP also has to be renewed every three years from now on. Prior to the reform, the PEP only have to be renewed every five years.

Manpower shortages have been a hindrance to small businesses in Singapore because of the fast turnover for new hires. Most businesses take a beating more during the holiday seasons because of the manpower shortages.

The recent recommendations on the labor passes are seen to affect the labor balance in Singapore but could actually be considered as a challenge for Singapore-based company and business owners. By training their workforce and implementing long-term workforce planning, companies can reduce turnover rates, enhance productivity in the workplace, and save up on operational costs.