Shifts in the Ministry of Manpower’s strategy for Singapore’s labour market

Written by
RMI Team (D)

Recognising the winds of change within the job market, Singapore’s Ministry of Manpower (MOM) is expanding enhanced support from vulnerable workers to the broad middle and apex segments of the workforce. This strategic pivot addresses the evolving labour market demands and the need to better equip workers with the skills necessary for future job demands.

The MOM is championing this and other targeted initiatives to promote job security and opportunities for career advancement for residents. These efforts, advocating for continuous learning and adaptation, align the MOM with Singapore’s broader goals of creating a resilient and competitive labour force that benefits workers and employers.

Enhancing the recruitment of foreign talent through COMPASS

In Singapore, the Employment Pass (EP) is one of the most sought-after visas and is crucial in attracting skilled professionals to the country. To support this goal, MOM introduced the Complementarity Assessment Framework (COMPASS) in 2023, which imposes a two-stage evaluation process for EP applicants and salary requirements. From 2025, the minimum salary for the EP will be raised by $600 to $5,600 and for those in the financial sector by $700 to $6,200.

The COMPASS evaluation framework aims to streamline workforce planning and enhance recruitment efficiency in Singapore. Strengthening screening measures for highly skilled professionals supports the country’s broader economic goals by ensuring a steady influx of talent that can drive innovation and boost productivity. Ultimately, the COMPASS framework improves recruitment processes and reinforces Singapore’s status as a hub for global talent.

Enhance your understanding of MOM Employment Pass requirements and streamline your HR processes. Download the guide now

MOM’s role in ensuring compliance

Alongside the new worker support measures recently announced, MOM enforces employment laws and regulations through regular inspections and audits to uphold standards related to worker rights, safety, and fair employment practices. By actively monitoring businesses and implementing penalties for non-compliance, MOM protects employees’ welfare and reinforces the integrity of the labour market.

In 2024, the government agency fined two retail outlets for being non-compliant with the Retail Wage Progressive Model and underpaying 12 employees. In another incident, 32 people were arrested in Singapore for involvement in illegal employment practices.

MOM’s scrutiny has only increased recently, and the city-state has reworked its Employment Law in 2024. As of 2024, Singapore’s Employment Act will expand coverage to include more employees, raising the salary threshold from S$2,600 to S$3,600. This change ensures that more workers benefit from key entitlements such as paid annual leave, sick leave, and public holidays.

These updates, including COMPASS, aim to enhance employee rights and reflect the evolving labour landscape, emphasising the importance of fair treatment and support for all workers in Singapore.

Importance of background screening

Background throughout these processes is paramount, and the MOM expects employers to uphold high standards of hiring practices, including the implementation of background checks. Background screening is essential for creating a safe and compliant workplace, particularly in a dynamic labour market like Singapore’s. It aligns with legal and regulatory requirements and reinforces an organisation’s commitment to ethical employment practices.

By conducting thorough checks on potential employees, businesses can mitigate risks associated with hiring individuals with a history of misconduct or misrepresentation. Additionally, misrepresentation can create compliance problems for businesses.

This proactive approach helps ensure the workforce is qualified and trustworthy, ensuring a secure environment for all employees.

Ensuring a safe and compliant workplace through effective screening solutions

In conclusion, MOM’s proactive measures and regulatory frameworks are crucial in shaping Singapore’s labour market, ensuring compliance, and enhancing workforce quality. By focusing on areas such as background screening and employee rights, MOM sets the stage for a safe and equitable working environment for all. As Manpower Minister Dr Tan See Leng said at a recent event, the goal is to build progressive and productive workplaces.

For employers looking to align with these standards and safeguard their workplaces, thorough background screening is essential. Our screening services include qualification verification, financial health screening, and reputational checks. We are one of Singapore’s few background screening companies that can verify educational certificates for EP applicants.

To learn more about effective screening solutions and how they can benefit your organisation, visit our background screening page for comprehensive insights and resources.

Please see our Best Practice Guide for details on the new COMPASS requirements for employers.