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Manpower for Strategic Economic Priorities Scheme

The M-SEP scheme supports the growth of businesses that contribute to Singapore’s strategic economic priorities through ambitious investment, innovation, or internationalisation activities.

What is it

The M-SEP scheme gives firms some flexibility to temporarily hire S Pass and Work Permit holders above their existing Dependency Ratio Ceiling (DRC) and S Pass sub-DRC for 2 years. Eligible firms can obtain additional S Pass and Work Permit quota up to 5% of their base workforce headcount, subject to a cap of 50 workers per firm and fulfilment of the commitments listed below.

Condition 1: Participate in one of the following key economic priorities:

  • Promote investments which support Singapore’s hub strategy
  • Promote innovation or Research & Development (R&D)
  • Support internationalisation
The list of initiatives and specified economic criteria will be updated from time to time.

Condition 2: Commit to hiring or training locals

Renewal thereafter is conditional on firms’ continuous fulfilment of the eligibility criteria.

How to apply

To be eligible, firms must meet both of the following:

Condition 1: Participate in key economic prioritiesShow

Find out about the required supporting documents you need to qualify for each criteria.

Firms must participate in at least one of the following initiatives by economic agencies, or meet any economic criteria to be eligible:

Supporting agency: Economic Development Board (EDB)

  • Recipients of Development and Expansion Incentive (DEI), including International Headquarters-DEI
  • Pioneer Certificate Incentive (PC) recipients
  • Research and Innovation Scheme for Companies (RIS(C)) participants
  • Manufacturers with significant activities in Singapore (i.e. hire at least 500 locals).

Supporting agency: Enterprise Singapore (EnterpriseSG)

  • Global Trader Programme (GTP) participants
  • Scale-Up SG participants
  • Singapore Global Executive Programme (SGEP) participants
  • High-growth startups that are incorporated in Singapore:
    • with minimum investment amount of USD$10 million over the past 36 months, and
    • have received funding from EDBI, SEEDS Capital or other recognised investment firms.

    The criteria for “high-growth startups” is the same as the Tech@SG criteria.

Supporting agency: Infocomm Media Development Authority (IMDA)

  • Accreditation@SG Digital recipients
  • SG:D Spark participants

Supporting agency: Maritime and Port Authority of Singapore (MPA)

  • Maritime Sector Incentive:
    • Approved International Shipping Enterprise (MSI-AIS) Award recipients
    • Shipping-related Support Services (MSI-SSS) Award recipients
    • Maritime Leasing (ML) Award recipients
  • Maritime Cluster Fund – Business Development (MCF-BD) recipients

Supporting agency: Singapore Tourism Board (STB)

  • Selected Business Improvement Fund (BIF) grantees with innovative projects that bring about substantial transformation or productivity savings
  • Selected Singapore Tourism Accelerator (STA) participants with innovative projects that bring about substantial transformation or productivity savings

Condition 2: Commit to hiring or training localsShow

Find out about the required supporting documents you need to qualify for each criteria.
Your firm must commit to one of the following:
2a: Increase in Net Hiring of locals

Increase the overall local workforce size at the point of M-SEP renewal from the point of M-SEP application, i.e. those earning $1,400 a month or more.

Benefit: You will get 1 x M-SEP quota per net hire, subject to 5% of your firm's base workforce headcount, and a cap of 50 quota.

There are no qualifying programmes under 2a. Companies can hire through its own means, or through Government programmes, such as:

  • Attach-and-Train Career Conversion Programmes
  • Career Trial
  • Place-and-Train Career Conversion Programmes
  • SGUnited Mid-Career Pathways Programme
  • SkillsFuture Career Transition Programme
  • Tech Skills Accelerator (TeSA) Company-Led Training (includes TeSA for ITE and Polytechnic apprenticeships)
2b: Workforce Training resulting in job enhancement

Send local workers to one of the following training programmes. These training programmes require companies to demonstrate sufficient effort in directly training the individual, such as through structured on-the-job training or assigning dedicated mentors, that will result in job enhancements.

Job enhancements could include promotion with wage increment, expanding job scope or higher level responsibilities. Trainees can be a new entrant into the company or an existing worker.

Benefit: You will get 1 x M-SEP quota per worker you commit to train, subject to 5% of your firm's base workforce headcount, and a cap of 50 quota.

Qualifying programmes

Supporting agency: Economic Development Board (EDB)

  • Accelerated Pathways for Technicians & Assistant Engineers (Manufacturing) Grant “APT(M)”

Supporting agencies: Institutes of Higher Learning, supported by Ministry of Education (MOE) and SkillsFuture Singapore (SSG)

  • Work-Study Degree (WSDeg) in-employment upgraders
  • Work-Study Diploma (WSDip)
  • Work-Study Post-Diploma (WSPostDip)
  • Work-Study Certificates (WSCerts)

Supporting agency: Workforce Singapore (WSG)

  • Redeployment / Job Redesign Reskilling Career Conversion Programmes
  • Capability Transfer Programme (CTP)

Supporting agency: Maritime and Port Authority of Singapore (MPA)

  • Maritime Leadership Programme
  • Global Talent Programme
  • Maritime Cluster Fund – Manpower Development (Management Associate)

OR

2c: Be an Industry Leader with Training Excellence

Participate in at least one of the qualifying programmes, such that your firm:

  • Benefits the sector at significant scale, such as in filling critical skill gaps or manpower shortages for the sector.
  • Has been recognised for having excellent established workplace learning structures to support business growth and strategies.

Benefit: Additional S Pass and Work Permit quota, up to 5% of base workforce headcount, capped at 50 persons per firm.

Qualifying programmes

Led by: Nanyang Polytechnic

Supporting agency: SkillsFuture Singapore (SSG)

Firms will also have to maintain their local workforce share and show that they have met the above commitments by the end of the M-SEP support period. Those that fail to do so will be suspended from being eligible for M-SEP renewal for 2 years. For firms that are reducing their overall workforce to become more manpower-lean, MTI and MOM will review these cases on a case-by-case basis.

Apply for M-SEP

Interested firms can submit an application with the required supporting documents. Applications will be assessed by the relevant economic agencies.

For more information

Local workforce
Your Singaporean or PR employees are counted as:

  • 1 local employee if they earn the Local Qualifying Salary (LQS) of at least $1,400 per month.
  • 0.5 local employee if they earn half the LQS of at least $700 to below $1,400 per month.

Local workforce share =
Number of local employees ÷ (Number of local employees + S Pass holders + Work Permit holders)

Base workforce headcount =
Local workforce + S Pass holders + Work Permit holders