Strong enforcement measures will guard against new EP system fraud

THE government will have strong enforcement measures to guard against employers attempting to game the Complementarity Assessment Framework (Compass), the new points-based system to assess Employment Pass (EP) applicants and their employers, said Manpower Minister Tan See Leng in Parliament on Monday (Mar 7).

Noting that there are already verification processes to prevent fraud for salary and educational qualifications, Dr Tan said that the authorities will develop similar processes for the new criteria, such as whether the applicant's job role is listed on the official "shortage occupation list".

"Employers certainly will not be able to get away with changing the job title to claim bonus points," he said. "We will not hesitate to take employers to task if they are found to have falsely declared information to get the EP application approved."

At the end of the Ministry of Manpower's (MOM) Committee of Supply debate, Dr Tan responded to various concerns that Members of Parliament (MPs) had about Compass.

Responding to a question from Patrick Tay (Pioneer SMC) on what constitutes a top tier institution under Compass, Dr Tan said top-tier technical institutes, polytechnics and some vocational institutes will also be considered on the list of top-tier institutions.

MOM will also work with sector agencies to recognise certifications that are well regarded by the industry, he said.

An EP application must score a total of 40 points across 4 foundational and 2 bonus criteria in order to be approved. For 2 of the foundational criteria, companies with fewer than 25 professionals, managers, executives and technicians (PMETs) will receive 10 points each by default, comprising a total of 20 points.

Workers' Party (WP) MP Jamus Lim (Sengkang GRC) raised concerns that this rule will result in a "cliff effect" that would discourage small and medium-sized firms from growing bigger, as they would no longer gain these points by default if they employ 25 or more PMETs.

In his reply, Dr Tan said the 2023 start date will give businesses enough time to adapt to the new framework and there are multiple schemes available to support them as well.

He added: "As we use funding to support this group... the moment they get to a certain size, I think it is also the social compact and their responsibility to ensure that our Singaporean core continues to be supported and to be brought along with them as well."

One of the foundational criteria concerns the share of a company's PMET workforce that is of the same nationality as the applicant. On WP MP Gerald Giam's (Aljunied GRC) question on the rationale for this diversity criterion, Dr Tan said that it was developed to ensure that Singapore does not depend on one source for foreign talent.

This was partially influenced by the manpower challenges the Republic faced during the pandemic when some foreigners were not allowed to enter the country due to the public health and border control measures in place, he added.

Liang Eng Hwa (Bukit Panjang SMC) asked if the new framework will result in a higher number of EPs than before, if all employers are able to meet the requirements under Compass.

To that, Dr Tan said MOM chose not to set a quota on the number of EP applicants as it is meant to be the "top tier in terms of all our work passes".

He added that the system was designed to ensure that every EP holder will "pull their weight" in complementing local workers while supporting and driving Singapore's economy.

"As long as the economy continues to grow, as long as it continues to uplift all of our Singaporean core in terms of their skill sets, competencies, and most importantly their take-home wages, I think the framework will be one which is going to help us continue to improve," said Dr Tan.

WP chief Pritam Singh asked if the government would consider adding a bonus criteria for renewal applications that looks at whether the EP holder has contributed to a real transfer of skills to Singaporean workers.

In response, Dr Tan said the authorities are "not closed off to this thinking" and will continue to tweak the framework with these considerations in mind.