Singapore is one of the most welcoming countries in the world for entrepreneurs and business owners. Its ease of incorporation, strong financial framework, low corporate tax rates, and global reputation make it an attractive hub for starting new businesses. However, if your newly incorporated company intends to hire foreign professionals, one major challenge often arises: how to successfully obtain an Employment Pass (EP) under the COMPASS framework.

Introduced in 2023, the COMPASS (Complementarity Assessment Framework) scoring system is now mandatory for all new EP applications. COMPASS assesses both the candidate and the company, awarding points across six criteria. To secure EP approval, you must score at least 40 points, which can be from any mix of foundational or bonus criteria.

For new companies—especially startups, SMEs, and foreign-owned entities—passing COMPASS can feel intimidating. Many new businesses do not yet have local employees, revenue, or established diversity in workforce composition. However, with proper planning and understanding, new companies can pass COMPASS successfully, and thousands do so every year.

This 1500-word guide explains how new companies can meet COMPASS requirements, strengthen their EP applications, and avoid common pitfalls that lead to rejection.

1. Understanding COMPASS and Why It Is Challenging for New Companies

COMPASS is designed to ensure foreign hires:

complement Singapore’s workforce
bring skills that locals might not have
contribute to the country’s strategic economy

For new companies, the challenge is that COMPASS evaluates the employer on:

local PMET ratio
workforce diversity
economic contribution
industry competitiveness

But most new companies:

do not yet have local employees
have foreign-heavy teams
have not built financial track records
do not qualify for economic priority bonuses

This means new companies may score 0 points in some COMPASS categories — and that is normal.

However, COMPASS is flexible and does not require perfect scores in every category.
To pass EP, all you need is 40 points, which can be achieved through other strong areas such as:

salary competitiveness
qualifications
roles listed under the Shortage Occupation List (SOL)
diversity
strategic positioning

Let’s break down exactly how.

2. COMPASS Criteria: How Points Are Allocated

COMPASS has 4 foundational and 2 bonus criteria:

Foundational Criteria (C1–C4)

Salary – Compared to sectoral and age norms
Qualifications – Degree, institution quality, relevance
Diversity – Workforce nationality mix
Local Employment Support – Company’s local PMET share

Bonus Criteria (C5–C6)

Skills Bonus – Job listed on the Shortage Occupation List
Strategic Economic Priority Bonus – Employer aligned to national economic goals

Each criterion can give up to 20 points.

To pass: Total ≥ 40 points

New companies often struggle with C4 (Local PMET share) and sometimes C3 (Diversity).
But you can still score strongly in C1, C2, C5, and C6.

3. How New Companies Can Score Under Each COMPASS Criterion

Let’s go through each criterion and discuss how new companies can realistically earn points.

C1: Salary — The Most Important Criterion for New Companies

Salary competitiveness is the strongest area where new companies can gain points because it depends on the applicant, not the employer.

How points are awarded:

20 points: Salary significantly exceeds sector median
10 points: Salary is at or near sector median
0 points: Salary below median

How new companies can score well:

1. Match salary to applicant’s age

Older applicants require higher salaries.
For example:

25-year-old PMET → S$5,600–S$6,000
30-year-old PMET → S$7,000–S$8,000
40-year-old specialist → S$10,000–S$12,000

2. Ensure salary matches industry benchmarks

MOM publishes salary norms per sector. Pay at or above this to secure 10–20 points.

3. Salary must align with job seniority

A “Manager” earning S$4,500 will fail COMPASS.
A “Senior Engineer” earning S$11,000 is well-supported.

Outcome

Even a new company with no local staff can score 20 points here.

C2: Qualifications — A Crucial Criterion for Foreign Professionals

How points are awarded:

20 points: Degree from top-tier institutions or strong professional certifications
10 points: Recognised degree
0 points: Diploma, vocational certificate, or no recognised qualifications

For new companies, this is another strong scoring category.

How new companies can score well:

1. Hire candidates with strong academic backgrounds

Degrees in:

Engineering
Computer Science
Finance
Business
Law
Data Science
…perform strongly.

2. Attach supporting documents

Transcripts
Certificates
Accreditation verification

3. Highlight professional certifications

These add weight even if the degree is average:

CFA
CPA
PMP
AWS
Google Cloud
Cisco
Scrum Master
Cybersecurity credentials

Outcome

Almost all new companies can secure 10 to 20 points here.

C3: Diversity — A Surprisingly Easy Category for New Companies

Even though new companies may initially have only a few foreign staff, diversity can still work in their favor.

How points are awarded:

20 points: Applicant adds diversity
10 points: Applicant is neutral
0 points: Applicant belongs to an over-represented nationality

How new companies can score well:

Because a new company often has no existing staff or just 1–2 staff, it is easy for a new candidate to improve diversity.

Only companies with:

80–90% of the same nationality
face penalties.

For example:

A foreign-owned startup with 3 Malaysian staff applying for a Filipino EP candidate → 20 points
A new company with zero employees → automatically strong diversity

Outcome

Most new companies can easily score 10 to 20 points here.

C4: Local Employment Support — The Hardest Category for New Companies

This criterion evaluates:

how many local PMETs the employer has
compared to industry peers

How points are awarded:

20 points: Above sector average
10 points: Near sector average
0 points: Below sector average

Why new companies struggle

Most new companies:

have few local employees
may be fully foreign-owned
operate with lean teams
are newly incorporated with no track record

This often results in 0 points in C4.

Solutions for scoring in C4:

1. Hire at least one Local PMET

Even one local PMET can lift your score to 10 points.

2. Hire part-time PMETs

Part-time PMETs also help.

3. Engage local consultants or advisors

Local talent in strategic areas supports C4 indirectly.

4. Build a growth plan showing local hiring

Attach this to the EP application.

While new companies may still score 0 here, that is okay if they compensate in other categories.

Outcome

Most new companies score 0 points, but can still pass COMPASS.

C5: Skills Bonus — Shortage Occupation List (SOL)

This is one of the strongest ways for new companies to increase their COMPASS score.

SOL Covers Roles Such As:

Software developers
AI and machine learning specialists
Cybersecurity experts
Marine engineers
Fintech specialists
Data scientists
Biotech researchers

How to score points

If your candidate’s job fits SOL:

You automatically earn 20 bonus points

SOL roles are in high demand and Singapore wants to fill shortages quickly.
This can make or break approval for new companies.

C6: Strategic Economic Priorities Bonus

This bonus goes to companies that:

work with government-recognised partners
receive support from Enterprise Singapore
operate in strategic sectors (tech, manufacturing, sustainability, etc.)
invest in training, innovation, digitalisation, or R&D

How new companies can qualify

Join industry transformation programs
Participate in ESG grants
Collaborate with government agencies
Invest in automation, digitalisation, or upskilling
Register for IMDA, MAS, or ESG partnerships

If qualified, the company earns 20 points.

4. How New Companies Can Reach 40 COMPASS Points: Real Examples

Here are realistic scoring combinations for new companies.

Example 1: Small Startup With One EP Hire

Salary: 20
Qualifications: 20
Diversity: 20
Local PMET: 0
No bonuses

Total = 60 → EP Approved

Example 2: Tech Startup Hiring Software Engineer

Salary: 10
Qualifications: 20
Diversity: 20
Local PMET: 0
Skills bonus (SOL): 20

Total = 70 → EP Approved

Example 3: Foreign-Owned Company With Mixed Workforce

Salary: 20
Qualifications: 10
Diversity: 10
Local PMET: 0
Economic priority bonus: 20

Total = 60 → EP Approved

Example 4: New Company With Weak Salary

Salary: 10
Qualifications: 10
Diversity: 20
Local PMET: 0
No bonus

Total = 40 → Minimum Score Achieved

Even average applicants can pass if diversity and qualifications help.

5. Key Strategies for New Companies to Pass COMPASS

Here are the most effective strategies new businesses can use:

Strategy 1: Offer a Competitive Salary

Low salaries lead to instant C1 failure.
Match industry medians to ensure solid scoring.

Strategy 2: Hire Strong Candidates

Applicants with:

degrees,
certifications,
technical skill sets

score strongly in C2.

Strategy 3: Ensure Job Scope Matches Seniority

MOM rejects inflated titles.
Avoid mismatch between:

applicant’s background
job responsibilities
salary level

Strategy 4: Improve Workforce Diversity

Recruit talent from different nationalities when possible.

Strategy 5: Hire Local PMETs Early

Even one local hire can significantly boost C4.

Strategy 6: Apply for Grants or Programs

Get recognised under:

Enterprise Singapore
IMDA Accreditation
MAS Fintech initiatives

Strategy 7: Choose Roles From the SOL (If Possible)

This alone adds 20 bonus points.

Strategy 8: Prepare Strong Business Plans

MOM needs to see:

financial projections
paid-up capital
business model clarity
customer pipeline
marketing plans

A strong business plan increases credibility and reduces the chance of rejection.

6. Common Mistakes New Companies Make

Avoid these pitfalls:

❌ Offering low salaries

❌ Using generic job descriptions

❌ Hiring applicants with mismatched skills

❌ Not understanding COMPASS scoring

❌ Submitting applications without business evidence

❌ Poorly written business plans

❌ Inflating job titles

❌ Not hiring any locals

Such mistakes cause many avoidable rejections.

**Conclusion: New Companies Can Pass COMPASS With the Right Strategy**

Even though COMPASS may seem complex, new companies can absolutely secure EP approvals by planning strategically and understanding how points are awarded.

To recap the strongest opportunities for new companies:

✔ Salary competitiveness (C1)

✔ Strong qualifications (C2)

✔ Workforce diversity (C3)

✔ Skills bonus (SOL – C5)

✔ Strategic priority bonus (C6)

Even with 0 points for local PMET share (C4), you can still easily reach 40–70 points.

With proper preparation, strong documentation, and alignment between the applicant and the company’s business model, new companies can successfully hire foreign professionals and build strong teams in Singapore.