Background

Following the extensive debate on the issue of foreign manpower in September 2021 (see our alert: Policies announced to support the Singapore workforce, deter nationality discrimination), MOM intends to achieve the following goals:

• Bring in a higher quality foreign workforce with specialized skills, networks and expertise to complement our local workforce
• Support employers that invest in reskilling their workers and transfer of capabilities to build a strong Singaporean core
• Ensure diversity in our foreign workforce that draws the best from all around the world
• Drive productivity growth while keeping reliance on foreign labor at a sustainable level

MOM has introduced COMPASS, aimed at strengthening the complementarity of the foreign workforce, after consultation with tripartite partners, the National Trades Union Congress and the Singapore National Employers Federation.

In more detail

From 1 September 2023, MOM will score a new EP application on four foundational criteria, unless exempt, requiring each application to aggregate a minimum of 40 points, based on both the foreign candidate's and the employer's attributes. Applicants that initially fail to meet this minimum may nonetheless qualify for bonus points under two more candidate and employer criteria that warrant special attention.

All the criteria are tradeable; and none is a veto factor. Applications that score at least 10 points on all C1 to C4 foundational criteria will pass COMPASS; otherwise, applications that score less than 10 points on one criterion can make up the required points by exceeding expectations on another criterion or by scoring bonus points C5 and C6.

For C1: Do note that from 1 September 2022, and for renewal applications from 1 September 2023, MOM will revise the EP minimum qualifying salary:

• From SGD 4,500 to SGD 5,000 per month
• From SGD 5,000 to SGD 5,500 for the financial services sector
• Qualifying salary to also rise with age

Please see our alert, Budget 2022 employment updates - work pass qualifying salaries to increase, for a summary of coming increases in EP minimum qualifying salaries and, additionally, for S Pass applicants, changes in levy rates and quotas.

For C3: So as not to penalize employers in subsectors that have a relatively high share of local PMET employees (where the local PMET share is at least 70% pegged to the 20th percentile of employers economy-wide), the application will earn at least 10 points.

For C3 and C4: These employer-related attributes are already part of MOM's Fair Consideration Framework (FCF) Watchlist and COMPASS applies these considerations upstream, at the point of EP application.

Aligned with exemptions to the FCF job advertisements, a foreign EP candidate is exempted from COMPASS if they:

• Earn at least SGD 20,000 fixed monthly salary
• Are applying as an overseas intra-corporate transferee under the World Trade Organization's General Agreement on Trade in Services or an applicable Free Trade Agreement
• Are filling a role for one month or less

MOM has provided the following assurances for the implementation of COMPASS:

• COMPASS is not designed to make it harder for businesses to obtain an EP, the design of the points-based rubrics is transparent to provide employers with clarity and predictability for workforce planning.
• Employers with less than 25 PMETs will automatically be scored as 'meeting expectations' for C3 and C4, and MOM will repurpose the FCF Watchlist so MOM will assist employers scoring poorly on the employers' attributes with strengthening their workforce profile and adjusting to the new framework.
• MOM's Employment/S Pass Self-Assessment Tool will allow employers to obtain a 'balanced scorecard' to predetermine how each application fares prior to submission, so that they know the areas for improvement.
• COMPASS will buttress schemes such as Tech@SG and Tech.Pass (introduced to meet strong demand for skilled workers in the tech sector) to facilitate access to complementary talent.

We will keep you informed on developments on this front. In the meantime, if you have any concerns arising from the COMPASS rubric or on any related employment matter, please feel free to contact us.

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