THE salary bump to qualifying salaries for Employment Pass (EP) and S-Pass (SP) holders has businesses and observers noting the blow to talent-starved sectors while signalling the need to train local talent.

The tech sector in particular has been facing talent shortages and this new measure may even impede the growth of the infocomm technology sector in Singapore, according to Ivan Chang, treasurer of industry group SGTech.

"By raising the minimum qualifying salaries for E and S Passes, tech talent will become even more scarce and companies will end up paying more for the relevant skills. Already, wages in the tech sector and for tech roles have ballooned over the last year. This measure will thus worsen the wage cost inflation for tech roles," said Chang.