MOM announces details of COMPASS bonus criteria, including the initial Shortage Occupation List

The Ministry of Manpower (MOM) has released details on the Complementarity Assessment Framework (COMPASS) bonus criteria, comprising the Skills Bonus (Criterion 5) and the Strategic Economic Priorities Bonus (Criterion 6). These bonus criteria allow Employment Pass (EP) applicants who possess skills in shortage, and firms that contribute to Singapore’s strategic economic priorities, to earn bonus points towards their total COMPASS score. These bonus points help companies secure the complementary foreign manpower necessary to seize economic opportunities in the immediate term, in recognition that there are limits to our local workforce.

Announced at MOM’s Committee of Supply 2022, COMPASS is a new points-based framework that considers both individual and firm-related attributes to holistically evaluate an EP applicant’s complementarity to Singapore's workforce. COMPASS provides firms with clarity and predictability for manpower planning, and recognises efforts to develop a strong local pipeline and a diverse foreign workforce. COMPASS will apply to new EP applications from 1 September 2023, and to renewal EP applications from 1 September 2024. 

The British Chamber of Commerce statement in response to the announcements:

We are pleased to read the acknowledgement in today’s statement that complementary foreign manpower remains important for Singapore, with the recognition of limitations in scale of the local workforce and with the worldwide competition for talent. 

Sourcing and retention of highly skilled employees is high on the agenda for the business community in Singapore, according to both our own sentiment surveys and the recently published Singapore Business Federation National Business Survey. We welcome the publication of the Shortage Occupation List, which has been curated based on quantitative studies of labour shortages and vacancies in alignment with the recently released Jobs Vacancy Report and with Singapore’s goals firmly in mind, such as positioning the country as a leader in the technology and green economy sectors. It will be important that this list is reviewed on a regular basis, to reflect the needs of business and the changing goals of the country, and as new industries develop over time. 

The British Chamber looks forward to continuing to work closely with the Ministry of Manpower and sector agencies to share the feedback of the business community, as the criteria of the COMPASS framework develops over time and the new guidelines are implemented. 

Read on for the full detail of the announcement made. 

Skills Bonus (Criterion 5)

As Singapore moves to capture new economic opportunities, firms will require access to skilled talent to fill these jobs. The Government works closely with education and training institutes as well as tripartite partners to create a local pipeline by training our local graduates and reskilling mid-career workers for these good jobs. However, given our limited local workforce and worldwide competition for talent, the demand for skilled roles will also need to be met by complementary foreign manpower. This is why the Shortage Occupation List (SOL) recognises EP applicants in occupations that require highly specialised skills currently in shortage in the local workforce. EP applicants filling an occupation on the SOL can earn up to 20 bonus points on COMPASS.

The SOL is developed by MOM and the Ministry of Trade and Industry (MTI) through a robust evaluation process, in consultation with sector agencies and tripartite partners. SOL occupations must exhibit strategic importance to Singapore’s economic priorities plus a significant degree of labour shortage due to skills gaps.

In addition, one key consideration when placing an occupation on the SOL is a strong commitment by the sector agency to work with industry to develop the local pipeline to address these shortages over time. Such efforts include working with our Institutes of Higher Learning to equip graduates with the necessary skills for the job, as well as instituting programmes to upskill and reskill locals who are already in the sector or in adjacent roles.

The SOL will be reviewed every three years, but MOM will retain the flexibility to add or remove occupations annually if required by market conditions.

Verification checks and conditions for SOL candidates

For EP applicants who require the SOL bonus points to pass COMPASS, MOM will impose additional safeguards. First, MOM will conduct additional checks on the applicants, such as checking on their past work experience and whether the applicant has the qualifications, or industry accreditation that are relevant to the declared occupation. Second, such applicants, if approved, will have their employment restricted to the specific shortage occupation. This means that if their employer wishes to redeploy the EP holder to a different job role, the EP holder will be subject to a reassessment of their eligibility for an EP.

Strategic Economic Priorities Bonus (Criterion 6)

Singapore seeks to anchor and grow firms that can contribute to the innovative capacity of our economy, enhance our global linkages, and strengthen our economic competitiveness. This creates good jobs for locals. The Strategic Economic Priorities (SEP) Bonus thus recognises firms undertaking ambitious investment, innovation, internationalisation, or company and workforce transformation activities. Firms receiving the SEP bonus will be awarded 10 bonus points on COMPASS for each EP application submitted.

To qualify for the SEP Bonus, firms must be supported by sector agencies or the National Trades Union Congress (NTUC). To be considered, firms must participate in one of the eligible programmes run by agencies listed in Annex C, and demonstrate commitment to developing the local workforce. Supported firms will be notified by MOM from end-July 2023. Supported firms will receive the SEP Bonus for up to three years. To continue receiving the SEP bonus after three years, firms are required to meet expectations2 on the COMPASS firm-related criteria, Diversity (Criterion 3) and Support for Local Employment (Criterion 4).