MOM COS 2025: Supporting businesses, empowering workers and fostering inclusive growth

Manpower Minister Tan See Leng has outlined manpower measures in Budget 2025 to bolster business support, enhance workforce capabilities, and promote inclusive workplace policies.

At the Ministry of Manpower’s (MOM) Committee of Supply (COS) debate on 7 March 2025, Dr Tan said the Government would leverage the budget to address intensifying global competition and demographic challenges.

“People – their passion, ingenuity and skills – are at the heart of this journey. MOM will build a workforce that is adaptable, innovative and diverse, helping Singapore thrive in a turbulent world,” he said.

Business Support Initiatives

Dr Tan noted that businesses understand the importance of business transformation but often face financial challenges.

To help businesses alleviate cost pressures, he said the Government will help “alleviate businesses’ short-term pressures while driving long-term transformation.”

Extension of NTUC’s Company Training Committee Grant

The Government will inject an additional S$200 million into the NTUC’s Company Training Committee (CTC) Grant, extending its availability until 2028.

The grant’s scope will also be broadened to fund training programmes developed by Institutes of Higher Learning (IHLs) in collaboration with businesses and to subsidise course fees and absentee payroll, added Dr Tan.

New tripartite workgroup to raise HR standards and capabilities

Together with NTUC and the Singapore National Employers Federation (SNEF), MOM has formed the Tripartite Workgroup on Human Capital Capability Development, shared Dr Tan.

The workgroup aims to bolster economic, human capital capabilities, maximise workforce potential, and support business growth.

The workgroup is co-chaired by MOM Deputy Secretary (Workforce) Kenny Tan, NTUC Assistant Secretary-General Patrick Tay, and SNEF Council Member Benjamin Boh.

Access to high-skilled foreign workers

Responding to NTUC Assistant Secretary-General Patrick Tay’s call for an update on the Complementarity Assessment (COMPASS) framework, Dr Tan shared that preliminary findings have yielded positive results.

“Since COMPASS was introduced, the share of firms with higher dependence on foreigners of a single nationality has decreased by seven per cent, while the share of firms with higher dependence on foreigners generally has decreased by 15 per cent,” he said.

To ensure Singapore continues to have access to a high-quality foreign workforce, Dr Tan said the ministry will raise the S Pass qualifying salary and levy from 1 September 2025 to keep pace with local wages.

The minimum S Pass qualifying salary will be raised from $3,150 to $3,300, except for the financial services sector, which will increase from $3,650 to $3,800.

The levy rate will also be standardised at $650 for all S Pass Holders.

Enhancements to Work Permit Framework

Dr Tan added the Work Permit Framework will also be updated to help businesses hire and retain skilled non-PMET foreign workers.

The Non-Traditional Source (NTS) Occupation List will be expanded to include manufacturing roles, cooks, and heavy vehicle drivers, benefiting the Services and Manufacturing sectors.

Additionally, Bhutan, Cambodia, and Laos will be added as new NTS countries.

To support workforce retention, restrictions on the maximum employment period will be removed, allowing experienced workers to stay longer.

The maximum age for Work Permit Holders will also be raised to 63, which is the local retirement age.

Enhancements to Manpower for Strategic Economic Priorities (M-SEP) scheme

More programmes will qualify for M-SEP, and a new pathway will be introduced for firms that send locals on overseas exposure or leadership programmes, said Dr Tan.

Additionally, the support period will be extended from two to three years.

On empowering workers at different life stages

In his speech, Manpower Senior Minister of State Koh Poh Koon said it is important that Singapore embraces innovation so businesses can grow and workers can progress to better jobs.

He added that the economy needs a future-ready workforce that can quickly respond to changes in the job landscape.

“The Government will be implementing several measures to empower Singaporeans of all walks of life to build their career health and seize good job opportunities.

“We will uplift different segments of our workforce so that no one is left behind,” said Dr Koh.

Using SkillsFuture Credit for career services

Dr Koh shared that, moving forward, the SkillsFuture Credit can be used for eligible career guidance services provided by Workforce Singapore (WSG)-endorsed providers, shared Manpower Senior Minister of State Koh Poh Koon.

Workers can receive up to $1,000 to offset course fees, improving access to quality career guidance.

Dr Koh added that MOM will continue expanding its endorsed provider list.

Workgroups to support senior employment

In response to NTUC Assistant Secretary-General Desmond Choo’s call for more to be done to empower senior workers, Dr Koh shared that new workgroups will be formed to study how the Government can better support senior workers.

A Tripartite Workgroup on Senior Employment will be launched to help senior workers stay productive and employable while promoting age-friendly jobs and multi-generational workplaces.

Additionally, an Alliance for Action on Multi-Stage Careers will engage citizens in understanding workforce ageing challenges and collaborating with employers on innovative solutions for senior employment.

Creating more opportunities for professionals

Dr Tan said MOM will double the capacity of overseas work and leadership milestone programmes, increasing from around 400 to over 700 participants annually.

Enhanced transition support will be provided for departures and returns to support Singaporeans and their families in overseas postings. 

Meanwhile, the MOM will expand the Singapore Leaders Network (SGLN) fellowship and mentor programmes and foster cross-sectoral networking to strengthen leadership communities.

On fostering inclusive growth and workplace safety

Manpower Senior Minister of State Zaqy Mohamad said that Tripartism is crucial towards raising the incomes and skills of lower-wage workers.

He said that it is a shared responsibility of the Government, employers, unions, service buyers, consumers, and workers to build a society that supports fair remuneration and safe workplaces

“In the years ahead, productivity-driven growth will be ever more important for Singapore’s continued success. But we grow further if we grow together,” he added.

Uplifting lower-wage workers

Responding to NTUC Assistant Secretary-General Melvin Yong’s request for an update on the Progressive Wage Model (PWM), Mr Zaqy shared that the initiative has yielded tangible wage-growth outcomes for lower-wage workers.

To encourage further adoption of the PWM, Mr Zaqy said MOM will enhance the Progressive Wage Credit Scheme by providing greater short-term relief for firms.

Co-funding for Local Qualifying Wage (LQW) increases will rise to 40 per cent in 2025 and 20 per cent in 2026.

In addition to the Workfare Income Supplement (WIS) and Workfare Skills Support (WSS) schemes, an enhanced tier scheme called the WSS (Level-Up) will be introduced to support self-sponsored trainees.

Support vulnerable workers

Even as the workforce and workplaces transform, Manpower Minister of State Gan Siow Huang said the Government remains committed to ensuring they remain inclusive.

“This means ensuring that every member of society, including vulnerable groups, can participate fully in the workforce and workplace,” she said.

One way MOM will ensure inclusivity is through Workforce Singapore’s (WSG) Career Conversion Programmes (CCP).

The CCP will be enhanced to support reskilling mid-career new hires and employees in flexible or part-time roles.

The initiative will apply to employees on permanent or at least one-year contract terms. WSG will fund up to 90 per cent of their salaries during training, with a cap of $7,500 per month.

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