Singapore Self-Employed EP Renewal Conditions and Success Rate

In 2025, Singapore's Ministry of Manpower (MOM) has made significant adjustments to the Self-Employed EP renewal review process. The overall renewal success rate has dropped to 68% (from 75% in 2024), but the differences across sectors far exceed expectations—the tech industry maintains an 82% renewal rate, while traditional trading sectors have fallen to 53%. Behind these figures lies an increasingly sophisticated talent screening mechanism.

1. 2025 Core Renewal Indicators and Weightings

1. Business Sustainability (40% Weight)

• Revenue Growth:
• Safe zone: Annual average growth ≥15% (risk increases significantly below 10%)
• Example: A digital marketing company with S$800k in the first year and S$920k in the second year successfully renewed
• Local Spending Ratio:
• Recommended to maintain 30%-50% (pure cross-border businesses require additional explanation)
• 2025 new rule: Office rent/local salaries must account for 25%+ of operating costs

2. Employment Contribution (30% Weight)

• Local Employees:
• Basic requirement: 1 full-time or 2 part-time Singapore citizens/PRs
• Bonus points: Hiring disabled persons/fresh graduates (COMPASS +5 points)
• Salary Level:
• EP holder salary must continue to meet standards (increased to S$6,500 for finance industry in 2025)
• Match with company size (recommended 15%-25% of revenue)

3. Compliance Record (20% Weight)

• Tax Filing:
• No tax arrears (100% GST on-time payment rate)
• Corporate income tax rate variance from industry benchmark ≤20%
• Business Integrity:
• No false recruitment complaints
• No abnormal reduction in registered capital

4. Social Integration (10% Weight)

• Community Participation:
• ≥40 hours of volunteer work annually (requires institutional certification)
• Industry association participation (at least 1 formal membership)

2. 2025 Industry Analysis of Renewal Success Rates

Industry	Renewal Success Rate	Key Influencing Factors
FinTech	85%	MAS compliance record, local R&D investment
Cross-border E-commerce	72%	Singapore warehousing ratio, GST filing
Professional Consulting	65%	Local client ratio, methodology innovation
Traditional Trading	53%	Inventory turnover rate, related party transaction transparency
F&B Services	48%	SFA rating, local ingredient procurement ratio

Data source: Ministry of Manpower Singapore Q1 2025 Internal Statistics

3. Five Main Reasons for Renewal Rejection (2025 Cases)

1. Business Hollowing Out

• A logistics company with annual revenue of S$1.2 million, but 100% from a single overseas related transaction
• Remedial measure: Develop local clients 6 months in advance (at least 2)

1. Salary Anomalies

• Founder's monthly salary dropped sharply from S$8,000 to S$4,000 (suspected false employment)
• Solution: Maintain moderate growth in salary aligned with performance

1. Compliance Deficiencies

• Failed to update ACRA annual filing on time (resulting in business registration suspension)
• Prevention: Set up dual reminder system (accountant + corporate secretary)

1. False Employment

• Local employee's actual work content seriously inconsistent with contract
• Recommendation: Maintain complete work records (emails, attendance, etc.)

1. Zero Social Participation

• No participation in any local activities for two years (PR application also rejected)
• Optimization: Systematically plan integration path (Chamber of Commerce → Community → Schools)

4. Renewal Document Preparation Tips (2025 New Version)

1. Financial Documents

• Three-year comparative statements (highlighting key growth indicators)
• Local procurement invoices (organized by month)
• Salary payment records (including CPF contribution proof)

2. Business Proof

• Client list (indicating start and end dates of cooperation)
• Project achievement portfolio (visual presentation of impact)
• Intellectual property updates (trademark/patent renewal records)

3. Social Contribution

• Volunteer certificates (noting service hours and content)
• Training records (proof of local employee skill enhancement)
• Media coverage (highlighting industry influence)

5. Renewal Timeline Planning (2025 Best Practices)

1. 12 Months in Advance

• Check COMPASS self-assessment score (using official simulator)
• Initiate local recruitment (allowing 3-month adaptation period)

1. 6 Months in Advance

• Conduct first round of tax health check
• Participate in 2 industry exhibitions (retain visual records)

1. 3 Months in Advance

• Prepare audit report (audit required for revenue over S$500k)
• Update business plan (focusing on sustainable development)

1. 1 Month in Advance

• Pre-submit documents (using MOM pre-review service)
• Arrange mock interview with immigration consultant

6. Special Situation Handling Solutions

1. Loss-Making Enterprise Renewal

• Acceptable circumstances:
• Startup period (≤3 years) with reasonable business plan
• Industry-wide recession (need to provide industry report)
• Risk control:
• Maintain sufficient registered capital (≥S$200k)
• Show cash flow sustainability (6 months operating funds)

2. Industry Switch Renewal

• Must report in advance (at least 3 months)
• Prove professional relevance (e.g., IT trading to e-commerce technology)
• Case: A clothing trader successfully transformed into digital supply chain management

3. Executive Changes

• Shareholder structure changes require EP eligibility reassessment
• Recommendation: Obtain informal MOM consultation before changes

7. Transition Strategy from Renewal to PR

1. Tax Consistency

• Maintain stable tax burden rate for 3 years (fluctuation ≤15%)

1. Employment Deepening

• Local employee ratio increases year by year (target 30%+)

1. Community Rooting

• From participating in activities to hosting activities (qualitative change)

1. Family Ties

• Children attending local schools (prioritize public schools)

Conclusion: Renewal is the Touchstone of Business Authenticity

The 2025 Singapore Self-Employed EP renewal mechanism is essentially an unproctored integrity test. Those entrepreneurs who successfully renew often began laying the groundwork for every renewal requirement from the moment their first-year approval was granted—they hire local employees not just to make up numbers, but to genuinely build a team; they maintain revenue growth not through related transactions, but by taking root in the local market; they participate in community activities not for photo ops, but for genuine integration. In this Singapore that increasingly values substance over form, the secret to successful EP renewal is actually quite simple: use two years to prove that your original business plan is not a worthless piece of paper, but a life you are truly living. Remember, the immigration department is not renewing a permit, but reconfirming your business commitment.