SINGAPORE: The city-state is taking significant steps to reform its foreign workforce policies, strengthen economic growth, and enhance workforce productivity. A key change, effective from July 1, 2025, will see the removal of the existing cap on work permit holders, which limits their employment period in Singapore to 14 to 26 years. Manpower Minister Tan See Leng revealed this in Parliament on March 6, 2025, stating that the new policies will allow employers to retain “experienced workers who are still able to contribute” to business and industry.
However, according to the latest HRD Asia report, migrant domestic workers will be unaffected by this change and will remain subject to the current regulations. These reforms are seen as an effort to improve business flexibility, support local job creation, and raise overall productivity.
Raising the age limit for foreign workers
To keep experienced foreign workers in the workforce longer, Singapore will also increase the maximum employment age for work permit holders from 60 to 63 years old, aligning it with the national retirement age. This adjustment is designed to make the workforce more inclusive of older workers while offering employers access to a broader pool of seasoned professionals.
Under the new guidelines, new work permit applications will be limited to applicants under 61 years old, two years below the new age cap. This expansion will also include greater eligibility for experienced workers from countries beyond Singapore’s current applicant pool. Previously, non-Malaysian work permit holders had to be under 50, with Malaysians able to apply until they were 58. Now, these boundaries will be eased to accommodate a wider range of potential workers.
Expanding hiring options for key sectors
Starting September 1, 2025, the Non-Traditional Sources (NTS) Occupation List will see notable changes, expanding employment opportunities for foreign workers in services and manufacturing sectors. This list dictates which jobs can be filled by workers from specific countries, and the government is adding new roles to help businesses hire more readily.
Among the newly added roles are heavy vehicle drivers, manufacturing operators, and cooks—previously restricted to Indian restaurants, but now available to all general cooking positions. Additionally, three new countries—Bhutan, Cambodia, and Laos—will be included in the hiring pool for these sectors, further broadening Singapore’s talent-sourcing options.
Tan See Leng reassured that this expansion would not undermine the efforts to uplift local workers, as the jobs in these categories will require a minimum salary of $2,000.
Support for workforce transformation
The government is also making strides to help businesses adapt to an evolving workforce landscape. As part of this initiative, the Manpower for Strategic Economic Priorities (M-SEP) scheme, which allows companies to exceed their industry’s usual foreign worker quotas, will extend its approval period from two to three years starting May 1, 2025. This initiative will include more programmes to encourage businesses to upskill their local workforce by sending them on overseas leadership programmes, following recommendations from the Alliance for Action on Business Competitiveness.
Furthermore, to assist companies with workforce transformation, Singapore will launch a $400 million Enterprise Workforce Transformation Package. This comprehensive package includes new advisory services, financial support for job redesign efforts, and a consolidated SkillsFuture Workforce Development Grant that will streamline workforce development applications.
Foreign workers and the Singaporean workforce
While these changes are designed to benefit businesses and the broader economy, some concerns remain about the growing reliance on foreign labour. Mr Tan addressed these concerns, emphasising that foreign workers play a crucial role in maintaining Singapore’s economic competitiveness. He explained that without access to foreign talent, companies might relocate elsewhere, leading to job losses for locals.
Over the past decade, Singapore has seen a net increase of 38,000 Employment Pass (EP) and S Pass holders, yet the number of local professionals (PMETs) has grown by 382,000 in the same period. Mr Tan highlighted that a third of new resident PMETs had transitioned from non-PMET roles, demonstrating the broader workforce’s upward mobility.
The minister warned against developing a “Singaporean-only” mentality, stressing that international talent is necessary to support global businesses that ultimately benefit Singaporeans. His remarks reflect the government’s balanced approach to managing the country’s foreign workforce while fostering opportunities for local workers.
These policy shifts mark a significant step in addressing the evolving needs of Singapore’s workforce, aiming to retain skilled foreign workers while ensuring that local employment continues to thrive in a dynamic global economy.