Navigating the changing immigration landscape in Singapore with COMPASS

Singapore’s new COMPASS framework for Employment Pass applications and renewals is raising the bar for businesses hiring foreign nationals.

By Rachel Ang, Immigration Manager, Magrath Sheldrick LLP

Singapore has long been an attractive destination for businesses and expatriates alike due to its robust economy, political stability, and business-friendly environment. Over the years, the city-state has continually adapted its immigration policies to meet the evolving needs of its workforce and economy. One of the latest developments in this regard is the introduction of the Complementarity Assessment Framework (COMPASS) for new Employment Pass applications from 1 September 2023 and Renewals, scheduled to take effect from 1 September 2024 onwards. This significant change in Singapore’s immigration landscape has raised questions and concerns for companies with existing pools of expatriates and those planning to hire foreign nationals for their Singapore entities. In this article, we will delve into the key aspects of COMPASS and explore what it means for businesses operating in Singapore.

Understanding COMPASS

The Complementarity Assessment Framework (COMPASS) is a novel framework devised by the Singaporean government to ensure a more calibrated and data-driven approach to managing foreign employment in the country. With a specific focus on Employment Pass applications and renewals, COMPASS aims to strike a balance between the interests of foreign workers and the local workforce, while also aligning with Singapore’s long-term economic and labour market needs.

Key Components of COMPASS

COMPASS aims to attract and retain top global talent, while also increasing the incentives for businesses to develop and promote Singaporean employees.

COMPASS is based on four foundational criteria:

1. Salary: The applicant’s salary must meet or exceed a minimum salary threshold, which will be set for each job role and sector.

2. Qualifications: The applicant must have the necessary qualifications and experience for the job role.

3. Diversity: The applicant’s nationality must not exceed a certain percentage of the employer’s total professional, managerial, and executive (PMET) workforce.

4. Support for Local Employment: The employer must have a good track record of hiring and developing Singaporean employees.

In addition to the four foundational criteria, there are two bonus criteria:

1. Skills in Demand (Shortage Occupation List): The applicant has skills that are in high demand in Singapore and are not readily available in the local workforce.

2. Support for Strategic Economic Priorities:

The applicant’s work will contribute to achieving Singapore’s strategic economic priorities. Employers can use the MOM provided self-assessment tool to assess whether their preferred candidate is likely to qualify for an EP under COMPASS. Implications for Companies with Existing Expatriate Workforces

For companies that already have a substantial expatriate workforce in Singapore, the introduction of COMPASS may require adjustments to their existing employment strategies. Here are some key considerations:

Renewal Challenges:

Renewing Employment Passes for existing expatriate employees may become more competitive and challenging. Companies should be prepared to demonstrate the unique contributions of their foreign employees to the local economy to meet the new qualification criteria.

Individual Profile Assessment:

Assessing the profile of each expatriate worker will become crucial to determine their eligibility under the new framework. Companies should evaluate whether the roles occupied by their foreign employees align with the COMPASS categories and qualification frameworks.

Talent Retention:

Retaining skilled expatriate employees may require more effort as they navigate the evolving immigration landscape. Companies should consider improving their employee value proposition to ensure retention.

Compliance and Documentation:

It is essential for companies to maintain rigorous documentation and records to comply with the new requirements. This includes evidence of fair employment practices, job postings for locals, and skillset evaluations.

Implications for Companies with Expansion and Recruitment Plans

For companies planning to expand their operations in Singapore or hire foreign nationals in the near future, COMPASS introduces additional considerations:

1. Strategic Workforce Planning: Companies must carefully assess their expansion plans and the specific roles they intend to fill with foreign workers. Understanding the COMPASS framework and qualification frameworks will be critical for making informed hiring decisions.

2. Local Talent Development: Given the priority accorded to local hiring, companies should invest in local talent development programs, training, and upskilling initiatives to meet their staffing needs while staying compliant with COMPASS.

3. Compliance from the Start: Compliance with COMPASS should be a top priority from the outset. Companies should establish fair employment practices, create transparent hiring processes, and maintain detailed records for future Employment Pass applications.

4. Professional Partnerships: Engaging with partners in Singapore who are well-versed in the immigration landscape and COMPASS can simplify the hiring process and ensure compliance.

The changing immigration landscape in Singapore with the introduction of COMPASS marks a significant shift in the way foreign employment is managed in the city-state. It emphasizes a more data-driven, calibrated approach to balance the needs of foreign workers, local talent, and the broader economy. Companies with existing expatriate workforces and those planning to expand in Singapore must adapt to this new reality.

Navigating COMPASS will require a strategic and proactive approach, including skillset assessments, talent retention strategies, and a strong commitment to fair employment practices. Furthermore, businesses should maintain compliance from the outset and invest in local talent development to meet the evolving needs of the Singaporean labour market.

Singapore’s willingness to adapt its immigration policies to suit its economic objectives demonstrates its commitment to remaining a competitive and attractive destination for businesses and talent. As companies adapt to the changing landscape, they can continue to thrive and contribute to growth and prosperity.

About the Company

Magrath Sheldrick LLP is a major force in immigration and employment law. The firm provides innovative, high-touch advice and assistance to a diverse range of businesses and private clients from around the World. With headquarters in central London, Magrath Sheldrick LLP is one of the UK’s most successful business immigration practices, providing UK, US, and Global immigration solutions. The Singapore office provides focused and tailored immigration advice to corporates and individuals including assistance with cross border projects in APAC. Praised as a market-leading firm by the main legal directories, the firm specialises in all aspects of global mobility and investor migration. Visit www.magrath.co.uk for more information.