Effect of Employment Pass Qualifying Salary and Other Workforce Policies on Skills Gaps and Wage Growth
Ministry of ManpowerSpeakers
Summary
This question concerns Ms Hazlina Abdul Halim’s inquiry on whether Employment Pass (EP) qualifying salaries and foreign workforce policies narrowed skills gaps and supported resident wage growth. Minister for Manpower Dr Tan See Leng responded that these policies maintain competitiveness, noting that real median income for full-time residents increased by 4.1% in 2025. He highlighted that resident PMET employment grew by 357,000 over the last decade, significantly outpacing the 24,000 increase in EP and S Pass holders. The Ministry of Manpower utilizes the Complementarity Assessment Framework and Shortage Occupation List to ensure foreign professionals complement the local workforce and address specific shortages. Minister for Manpower Dr Tan See Leng added that the shortage list is reviewed annually, with three ICT occupations removed in 2026 as local pipelines improved.
Transcript
35 Ms Hazlina Abdul Halim asked the Minister for Manpower whether sector-level data indicates that the Employment Pass (EP) qualifying salary and other foreign workforce policies have narrowed skills gaps or supported wage growth.
Dr Tan See Leng: Overall, our foreign workforce policies have helped to maintain Singapore's global competitiveness and grow the economic pie, which has created good jobs for Singaporeans and helped us achieve good wages and improvements in standards of living. Our income growth is higher than that of other developed countries, with real median income of full-time employed residents increasing by 4.1% in 2025.
Over the last 10 years, our resident unemployment rate has remained stable and low at around 3%, positioning Singapore as the third lowest when compared with OECD countries. The number of residents in higher-skilled professional, managerial, executive and technician (PMET) jobs has grown in tandem with the number of foreign PMETs. Over the past 10 years, the number of residents holding PMET jobs increased by 357,000, while the number of Employment Pass (EP) and S Pass holders increased by 24,000. In growth sectors, such as financial and insurance services, professional services and information, communications and technology, resident PMET employment increased by 157,000, while EP and S Pass holders increased by 8,000.
The Ministry of Manpower (MOM) regularly updates our foreign workforce policies, such as the EP and S Pass qualifying salaries, and Complementarity Assessment Framework (COMPASS) to ensure that foreign professionals complement our local workforce. For example, the COMPASS Shortage Occupation List awards bonus points to EP applicants to alleviate skills gaps in the labour market. In considering whether to place an occupation on the list, MOM takes into account the industry's commitment to develop the local pipeline. The list of shortage occupations is reviewed annually, and MOM has since removed three occupations in the Infocomm Technology sector in 2026 as more local workers have filled these jobs.