The Ministry of Manpower (MOM) in Singapore is a must-know agency since it’s one of the critical agencies that helps grow your business. Primarily responsible for all employee-related issues, MOM ensures that you understand workers’ rights and yours, too, including your responsibilities as an employer. Furthermore, MOM makes it easy for international investors to hire skilled foreign staff to work with the local Singaporean workforce.
MOM is also responsible for Workplace and Health Regulations, such as Workplace Injury and Compensation Act, the Workplace Safety and Health Act, and more.
How MOM Helps Grow Your Business in Singapore
How does MOM assist with growing your enterprise in Singapore? The Ministry of Manpower has several divisions to jumpstart your business.
MOM: Divisions Relevant to Your Business
Singapore’s Ministry of Manpower is a well-organized agency geared to supporting foreign-owned businesses. With MOM, investors can easily find their solid footing in warehousing, manufacturing, construction, and other lucrative ventures.
MOM’s divisions include the:
* Foreign Manpower Management Division (FMMD)
* Labour Relations and Workplace Division (LRWD)
* Manpower Research and Statistics Division (MRSD)
* Occupational Safety and Health Division (OSHD)
* Work Pass Division (WPD), etc.
All these divisions work together seamlessly to make sure you operate your business in a supportive and hassle-free environment. Let’s briefly look at how each division can help grow your business in Singapore.
1. Foreign Manpower Management Division (FMMD)
With this department, MOM can carry out foreign workforce policies and maintain high standards in their places of work. One primary function of FMMD is to manage and protect your international workers in these ways:
* Ensuring that you hire workers on merit and not through kickbacks
* Criminalizing illegal labor importation, false salary declarations, unlawful employment, and deployment
* Workers have decent accommodation, acceptable working conditions
2. Labour Relations and Workplaces Division (LRWD)
The Labour Relations and Workplaces Divisions is responsible for the following:
* Employment Act
* Employment Claims Act 2016
* Industrials Relations Act
* Trade Disputes
* Trade Union Acts, etc.
Its main functions include enforcing employment legislation, preserving workplace harmony, and advocating progressive workplace practices. In addition, employment legislation involves LRWD educating employers and employees about employment rights and obligations.
With preserving workplace harmony, LRWD helps workers and employees manage labor disagreements through advisory and mediation. Advocating progressive workplace practices involves ensuring that workers realize their optimum potential and employers achieve their strategic goals.
3. Manpower Research and Statistics Division (MRSD)
Statistical information on the labor market helps businesses make informed decisions. For this reason, MRSD’s significant role is in providing statistics and analysis on the Singaporean labor market. By offering accurate, real-time, correct, and relevant workforce-related statistics, the National Statistical Agency assists businesses in driving economic growth.
4. Occupational Safety and Health Division (OSHD)
Workforce safety is crucial for any business organization for the continuous production of goods and services. Because of this, OSHD is there to promote employees’ safety and health through policies, regulations, building capabilities, etc.
5. Work Pass Division (WPD)
With the Work Pass Division (WPD), foreign businesses can obtain all work passes, such as the Employment Pass, S Pass, and Work Permits. Now, let’s look at the work visas you may need for your business:
1. Employment Pass
If your business needs foreign professionals, managers, and executives, the Employment Pass is the proper work visa for them. To qualify for the Employment Pass, workers should earn not less than $4 500 a month and also have suitable qualifications.
2. Entre Pass
The Entre Pass is specifically for qualifying business people interested in setting up and operating a business in Singapore. The company must focus on innovative technologies and be funded by venture capital.
3. Personalized Employment Pass (PEP)
With more flexibility than the Employment Pass, the PEP is for overseas professionals or those with an existing employment pass earning high wages.
4. S Pass
Your company could also be employing mid-level staff with an income of at least $2 500 per month. If this is the case, you’ll need an S Pass for your workers. First, however, there are assessment criteria they must meet.
5. Work Permit for Foreign Worker
MOM also makes it easy for your company to hire semi-skilled employees in the construction, manufacturing, or service sector. It does this by providing permits for foreign workers.
6. Dependent Pass
Will you take your family or dependents with you to Singapore when you relocate on business? If your answer is yes, you should have a Dependent Pass. It’s a visa for spouses and children of people with an Employment Pass or S Pass.
You can check out more work visas here to find out others relevant to your business.
Employment Practices: Employment Act and Schemes for Employers
As a foreign business in Singapore, MOM wants you to be aware of your rights and obligations. For this reason, it has a brilliant program called Workright, through which it educates employees and employers about their responsibilities and rights. Some critical issues that may concern your business relate to:
* Overtime pay
* Itemized pay
* CPF contributions
* The Employment Act itself
You can find more on this page about other crucial aspects affecting your company in Singapore. You’ll also find a Workright toolkit showing how you can comply with Employment Laws on the same page.
Schemes for Employers
The Ministry of Manpower wants your international business to thrive in Singapore. As a result, it offers various schemes providing funding and support for workers and employers. In this segment, we’ll limit ourselves to schemes that your company may find helpful.
1. Senior Worker Early Adopter Grant and Part-time Re-Employment
You can benefit from this grant if your business carries out the Tripartite Workgroup on Older Workers. It means if you’re pro-hiring the old folk, you can get some financial incentives. You can read more about how you can qualify here.
2. Lean Enterprise Development (LED) Scheme
Through LED, MOM aims to assist businesses that adopt lean management strategies. Here are some things the scheme supports:
* Ensuring that your foreign to local employee ratio favors Singaporeans
* Upskilling workers to improve efficiency and productivity, including developing a digitized workforce
For more information on how you can apply and benefit from LED, visit the Business Grants Portal here. Your business will find all government grants in one place on the Business Grants Portal, making it easier to apply for the grants you need. The Portal is a creation of the Ministry of Finance, Ministry of Trade and Industry, and Government Technology Agency.
3. Workcare Grant
With the Workcare Grant initiative, MOM seeks to improve the work environment of essential service employees and encourage the development of rest areas. You can qualify for this grant if you own a building and hire a third-party service provider. In turn, the third-party company must employ a minimum of 10 outsourced essential service workers, including cleaners, security offices, and landscape maintenance workers.
4. Tax Incentives Scheme for Chemical Hazards Control
MOM has another excellent incentive for businesses that reduce the number of chemical emissions from their machines, equipment, or systems. When your business carries out chemical hazard control measures, MOM offers you a tax incentive to recoup the implementation costs.
Here are the criteria for qualifying for the tax incentive. Your business equipment must:
* Be brand new as used or reconditioned equipment is excluded
* Belong to your company, since leased, or hired machines don’t qualify
* Not result in other health risks
* Not have benefited from a financial grant from other agencies
Here are the steps to take when applying for the tax incentives.
1. You can apply for this tax incentive after hiring a certifying agency to:
* Measure the level of poisonous substances in the air
* Draw an Evaluation Report saying that your business qualifies for the program
* Complete the application or certification form
2. Once you’re done with step one, submit the documents to the certifying agency to complete the certification form.
3. Next, forward the documents to MOM’s Occupation Safety and Health Division with the following:
* Application copy or certification form
* Evaluation Report Copy
* Layout plan
* Product brochures or illustrations
When OSHD has approved your application, submit these documents to the Inland Revenue Authority of Singapore (IRAS) while you’re filing your taxes. Have the info below:
* Application or certification
* Evaluation Report
* Any other necessary supporting docs, for example, receipts
5. Tax Incentives Scheme for Noise Hazard Control
Like the tax incentive for chemical hazard control measures, the above tax incentive aims to encourage firms to reduce noise pollution from their factory machines. If your company carries out effective noise control measures of systems and devices, you’ll get a tax incentive to recover the implementation costs.
Similar to the scheme for chemical hazard control measures, your machines must be new, etc. You also have to engage a certifying agency to carry out a noise assessment. In addition, the application process is the same.
6. Human Capital Partnership Program HCPP
Another brilliant program from MOM is the Human Capital Partnership Initiative, supporting employers who invest in human resource development. As a tripartite program, HCPP focuses on businesses which:
* Invest in employees at all levels, especially Singapore workers
* Develop a balanced ratio between local and foreign workers
* Transfer skills from foreign staff to the local workforce to improve efficiency and productivity
Working with the tripartite partners, MOM has the following benefits for employers who emphasize human capital development.
Rapid response- Your business will get a dedicated hotline to handle all your HR matters. In addition, MOM will treat any application or submission from your company as a top priority.
Recognition- Your company will receive the ” Human Capital” mark to recognize an organization of excellence.
Resources- MOM will pamper your business with valuable resources and support to develop human capital through Adapt and Grow SkillsFuture, and the Lean Enterprise Development Scheme.
Workplace Safety and Health (WSH)
The purpose of Workplace Safety and Health (WSH) at the Ministry of Manpower is to ensure that your business environment is safe for your workers. Employees who work in injury-free and healthy surroundings ensure continuous production of goods and services.
WSH covers legal requirements, certification, monitoring and surveillance, accident and work injury compensation. For example, several legal needs may be necessary for your business, such as:
* Work accident reporting
* Applying for a license to authorized examiners for lifting equipment, pressure vessels, crane operators, etc.
* Applying for a permit or finding contractors, inspectors, auditing organizations, etc.
* Registration of lifting equipment, pressure vessels, etc.
* Notification or registration of a factory with MOM
* Incentives for implementing control measures for noise control and chemical hazard control
* List of type-approved autoclaves and tower cranes
* Major hazard installations
* Pay bills, fines, and more
eServices
To help ease the application of work visas and submission of other relevant documents for your business, MOM has a functional eServices portal. It has a wide range of services, including:
* Employment Pass Online (EP Online)-Check the status of EP, apply for a Dependent Pass, or renew a pass.
* Work Permit Online (WPOL) for businesses and employment agencies- Apply for and request MOM to issue a Work Permit.
* Employment Pass & S Pass self-assessment tool (SAT)- Check if your candidate qualifies for an Employment Pass or S Pass before you apply or renew.
* iSubmit (for work passes)- Use this service to submit some documents to the Work Pass Division.
* Check and Pay Foreign Worker Levy- Use this service to find out and pay the levy for foreign employees.
* Online Foreign Worker Address Service (OFWAS)-Here, you can register and update your foreign staff’s contact and residential details.
* Employment Agencies and Personnel (EA) Directory- It’s a valuable service to find employment agencies to assist with hiring suitably qualified people for your company.
Forms
On the MOM website, you’ll also find handy forms covering:
* Complete Medical Examination for Foreign Workers
* Application for Dependent Pass
* Application for Entre Pass
* Application for Interbank Giro (Foreign Worker Levy Payment)
* Application for Lean Enterprise Development (LED) Scheme
* Application for Long Term Visit Pass
In summary, the Ministry of Manpower in Singapore is a crucial agency your business needs to know and work with. It’s responsible for all employment-related issues and is the agency that handles work visas. In addition, MOM is a custodian of workplace safety and health regulations. Finally, with its various financial and non-financial incentives, MOM can help grow your business in Singapore.
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