Singapore, October 3, 2025 – In a bid to address evolving workforce needs and retain skilled migrant labor, Singapore's Ministry of Manpower (MOM) has implemented sweeping changes to its Work Permit system. Announced in March as part of the 2025 budget updates, these reforms lift long-standing restrictions on employment tenure and age, while expanding access to workers from new source countries and occupations. The moves, effective from June onward, are designed to support businesses amid labor shortages without compromising local employment priorities.
The reforms come at a time when Singapore's economy continues to rebound, with sectors like construction, manufacturing, and services relying heavily on foreign manpower. "With these changes, employers can retain experienced workers who are still able to contribute," said Manpower Minister Tan See Leng during the Committee of Supply debate in Parliament.
Lifting Tenure and Age Limits: A Game-Changer for Long-Term Workers
One of the most significant updates abolishes the maximum Period of Employment (POE) cap, previously ranging from 14 to 26 years depending on the worker's nationality and sector. Starting July 1, 2025, Work Permit holders can continue working up to Singapore's local retirement age of 63, provided they meet health and performance standards. This excludes migrant domestic workers.
Concurrently, the maximum employment age for permit holders has been raised to 63, aligning with national retirement norms. For new applicants, the age threshold has been streamlined to under 61 years old—up from the previous limits of below 50 for non-Malaysians and 58 for Malaysians. These adjustments aim to provide flexibility for industries facing skill gaps, particularly in physically demanding roles.
Minister Tan emphasized the policy's intent: "We are actively reviewing our work permit framework to drive transformation, while nuancing it to support different needs as our workforce changes."
Expanding Non-Traditional Sources: New Countries and Roles
To diversify the talent pool, MOM is broadening the Non-Traditional Sources (NTS) framework, which allows hiring from select countries under stricter quotas and salary floors to prioritize higher-skilled workers.
New Countries Added: Bhutan, Cambodia, and Laos join the existing NTS list (Bangladesh, India, Myanmar, Philippines, Sri Lanka, and Thailand) effective June 1, 2025. This expansion targets sectors needing specialized labor.
Additional Occupations: From September 1, 2025, the NTS Occupation List will include cooks (beyond just Indian restaurants), heavy vehicle drivers (requiring a valid Class 4 or 5 license as of that date), and various manufacturing operator roles. Firms hiring for these positions must adhere to an 8% NTS sub-Dependency Ratio Ceiling and pay a minimum fixed monthly salary of $2,000 to ensure quality hires.
As Minister Tan noted, "As (NTS Occupation List) workers must be paid at least $2,000, this will not undermine efforts to uplift locals in these occupations."
Other tweaks include extending the Manpower for Strategic Economic Priorities (M-SEP) scheme's approval period from two to three years starting May 1, 2025, allowing more programs to qualify.
Who Qualifies? Eligibility Criteria Remain Sector-Focused
Work Permits continue to target semi-skilled migrant workers from approved source countries, enabling them to take up jobs in specific sectors: construction, manufacturing (process), marine shipyard, services, and others. Applicants must hail from designated nations, including traditional sources like China and North Asian countries (Hong Kong, Macau, South Korea, Taiwan), as well as NTS and Malaysian workers.
Key ongoing eligibility factors include:
Meeting sector-specific quotas and levies, which vary (e.g., higher levies for lower-skilled roles to encourage upskilling).
Passing medical exams and securing medical insurance (with enhanced requirements from July 1, 2025, including a $60,000 annual claim limit and co-payment structures).
For non-Malaysians, a security bond to cover repatriation costs.
Employers must demonstrate that the role cannot be filled by locals, and workers under 61 (post-reform) with relevant skills are prioritized.
Streamlined Digital Application Process
The application process remains fully digital via MOM's online portal, emphasizing efficiency and compliance. Here's a step-by-step overview:
1. Submit Application: Employers or agents obtain worker consent and apply online at MOM's eServices portal, paying a $35 fee. Processing takes about one week; approved In-Principle Approval (IPA) letters are issued digitally.
2. Pre-Arrival Preparations: Secure a security bond (for non-Malaysians), medical and injury compensation insurance, and—for eligible sectors—a Primary Care Plan. Register for settling-in programs if required (e.g., for manufacturing or female construction workers).
3. Upon Arrival: Within two weeks, conduct a medical exam. Complete bond formalities and, for certain male construction workers, attend a mandatory onboarding program.
4. Issuance and Registration: Register the worker's address and request permit issuance ($35 fee). Biometrics (fingerprints/photo) may be required within one week, followed by digital setup via the SGWorkPass app. Physical cards arrive within five working days.
5. Ongoing Compliance: Workers must adhere to conditions like dormitory residency (where applicable) and permit validity, typically up to two years, tied to passport and bond expiry.
Non-Malaysian workers cannot enter Singapore during processing and must present the IPA at immigration.
Broader Implications and Cautions
While welcoming the reforms, industry observers urge businesses to prepare for adjusted levies and insurance costs. The changes also coincide with moderated hikes in S Pass qualifying salaries (to $3,300 from September 1) and standardized levies at $650, balancing openness with local protections.
Minister Tan addressed public concerns on foreign hiring: "That scepticism is natural – when we see a foreigner, we think, ‘they are taking a job a local could have had’. What is harder to see is that, without access to foreigners, the company and its jobs may not even be in Singapore to begin with. We should never develop a ‘Singaporean only’ mentality because this would deprive us of talent needed to anchor global businesses that benefit Singaporeans."
For the latest details, employers are advised to consult MOM's portal or Self-Assessment Tool. As Singapore navigates post-pandemic recovery, these updates signal a pragmatic approach to sustaining competitiveness through inclusive manpower policies.
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