Press Release

Reduction of S Pass Sub Dependency Ratio Ceiling For the Manufacturing Sector

  • Feb 16, 2021
  • MOM

To sustain the impetus for restructuring and improve manpower resilience in the Manufacturing Sector, MOM will be reducing the Manufacturing S Pass sub-Dependency Ratio Ceiling (DRC). This will take place over two steps in 2022 and 2023. This is in-line with the reductions in S Pass sub-DRC already underway for the Services, Construction, Marine Shipyard and Process sectors.

Supporting restructuring in Manufacturing

Manufacturing is a key pillar of Singapore’s economy, which has allowed us to capture value from global export markets, and create good jobs, with strong linkages and spillovers to other industries. The Government recently announced its ambition for Singapore to become a global business, innovation and talent hub for advanced manufacturing. One of the strategies to achieve this vision is to develop our local talent pipeline, by drawing more Singaporeans to manufacturing roles and supporting Singaporeans who want to pursue manufacturing careers.

As we continue to restructure and grow the manufacturing sector, as well as develop local skills and strengthen the Singaporean core in the sector, businesses are encouraged to reduce their reliance on foreign manpower at the S Pass level. MOM will be reducing the S Pass sub-DRC for the Manufacturing sector in two steps: from 20% to 18% from 1 Jan 2022, and to 15% from 1 Jan 2023.

Under the two-step reduction of the Manufacturing sector’s S Pass sub-DRC:

a. Before 1 Jan 2022: S Pass sub-DRC remains at 20%.

b. Between 1 Jan 2022 and 31 Dec 2022 (both dates inclusive): S Pass sub-DRC reduced to 18%. Employers will not be able to hire or renew their S Passes until they come within the new sub-DRC of 18%.

c. 1 Jan 2023 onwards: S Pass sub-DRC reduced to 15%. Employers will not be able to hire or renew their S Passes until they come within the new sub-DRC of 15%.

These adjustments are made in two steps to provide firms time to adjust. To minimise business disruptions as the S Pass sub-DRC is reduced, MOM will also allow employers to retain excess S Pass holders until the expiry of their work passes.

Support to help firms transform and hire locals

Firms can leverage on a wide range of support from the Government to transform their businesses to seize new opportunities and hire locals. 

a. Supporting business transformation

• Firms embarking on transformation projects can tap on support programmes including the Enterprise Development Grant to upgrade business capabilities, raise productivity and innovate.

• Firms can also redesign jobs to take advantage of technology. The Government will support businesses in this journey through job redesign programmes such as the Industry 4.0 Human Capital Initiative (iHCI) and Job Redesign under the Productivity Solutions Grant (PSG-JR).

b. Helping firms access the local talent pool

•  Firms can participate in Workforce Singapore’s (WSG) and SkillsFuture Singapore’s (SSG) programmes including:

o WSG’s career conversion programmes to hire mid-career jobseekers and equip them with the necessary skills to take on new or enhanced roles in manufacturing.

o SkillsFuture Work-Study Programme to defray firms’ training costs when they hire fresh polytechnic and ITE graduates.

o SkillsFuture Advanced Manufacturing Series, a curated list of industry-relevant training programmes validated by consultation with companies, to upgrade and retrain employees.

•  The Jobs Growth Incentive is also available to support firms to expand local hiring, with more support given for those who take on new local mature hires, persons with disabilities and ex-offenders.

•  The Government is also working closely with Institutes of Higher Learning (IHLs) to build a steady pipeline of local professionals for the sector. In 2019, our polytechnics and ITE produced about 10,000 engineering graduates  who are equipped with industry-relevant skills and knowledge.

Firms that require more help transiting to the new S Pass sub-DRC as they transform their workforce can apply for transitional manpower support under the Lean Enterprise Development (LED) Scheme. For more information visit mom.gov.sg/leds.

Strengthening the Singaporean core

The reductions to the S Pass sub-DRCs are part of a wider series of adjustments we have made to ensure a complementary foreign workforce policy at the S Pass level.  MOM raised the S Pass qualifying salary twice in the last year, and also extended the Fair Consideration Framework (FCF) advertising requirement to cover S Passes. We will continue to review our S Pass policy holistically, including the qualifying salary, quotas, and levies, to raise the quality of our S Pass holders in tandem with the transformation of our local workforce. Adjustments will be phased in, to provide time for businesses to adjust. MOM will continue to further support companies with the hiring of locals.


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