Business owners in F&B, retail and construction raise concerns about rise in S Pass qualifying salary

The move to raise the S Pass minimum qualifying salary has drawn concern from business owners in the F&B, retail, and construction sectors who say they often rely on foreign workers because locals are not readily available for certain roles. The Ministry of Manpower (MOM) announced on August 27 that the S Pass salary will increase by S$100 to S$2,500, effective in October, marking the second rise this year. S Pass jobs will also be subject to the Fair Consideration Framework with a 28-day vacancy advertisement requirement, up from 14 days. Industry groups warn the blanket hike raises costs for firms already squeezed by the current economy. The Restaurant Association of Singapore cautioned against further increases without government consultation and suggested exploring alternative measures to attract locals to F&B roles.

Businesses like Ka Soh Chinese restaurants owner Cedric Tang note the hiring challenge, with only about one in ten applicants for service roles being Singaporean. He warns wage bills will rise as passes are renewed, yet menu prices remain hard to lift in the present climate. Many operators argue that broader reforms are needed to shift locals into sectors such as F&B, retail, and construction rather than relying on blanket salary hikes. The higher minimums could squeeze margins and slow expansion for small firms. Industry voices urge the government to refine the rollout and consider alternative incentives to bolster local recruitment.