Manufacturing Sector Classification in Singapore
Why Your Business Sector Classification Matters
Many businesses in Singapore are automatically classified under the services sector when they are first registered.
However, depending on the nature of your operations, your company may actually qualify under the manufacturing sector instead.
This distinction matters more than most employers realise.
Your sector classification directly affects how many foreign workers your company is allowed to hire under the Ministry of Manpower’s (MOM’s) quota system.
For some companies, a simple reclassification into the manufacturing sector can significantly improve their ability to hire the manpower they need.
That is where we can help.
Why Sector Classification Matters
MOM applies different Dependency Ratio Ceilings (DRC) depending on the sector your business falls under.
In general, Singapore’s manufacturing sector allows companies to hire more foreign workers compared to the services sector.
This can make a substantial difference if your business relies on foreign manpower.
S Pass Quota: Services vs Manufacturing Sector
- Services sector: 9 local employees required for 1 S Pass
- Manufacturing sector: 6 local employees required for 1 S Pass
This means companies classified under the manufacturing sector in Singapore may qualify for more S Pass holders with the same number of local staff.
For businesses facing labour shortages, this difference can be critical.
How to Change to the Manufacturing Sector
When companies first register in Singapore, their business activity is often categorised under the services sector by default.
However, over time, the actual nature of the business may evolve.
For example, some companies may be involved in activities that fall under the manufacturing sector, such as:
- Food processing operations
- Product assembly
- Packaging operations
- Manufacturing-related production work
- Food manufacturing sector activities such as sauce production, ready-meal preparation, or central kitchen processing
- Electronics or semiconductor component assembly
- Metal fabrication or precision engineering work
- Plastic moulding or industrial component production
- Contract manufacturing for other brands (OEM or private label production)
- Industrial baking, beverage bottling, or ingredient blending
- Cosmetic or personal care product manufacturing
- Medical device or laboratory consumable assembly
In such cases, the business may be eligible to be classified under the manufacturing sector instead.
This classification can affect both foreign worker quotas and Work Permit eligibility for manufacturing sector roles.
Why Businesses Are Classified as Services
Changing your company’s sector classification to the manufacturing sector isn’t automatic.
MOM typically assesses several factors when reviewing a sector reclassification application.
These include:
- The nature of your business activities
- Your production processes
- Supporting documents about operations and revenue sources
- The percentage of activities related to manufacturing
Each case is assessed individually.
This is why proper preparation and clear documentation are important when submitting your application.
Manufacturing Sector Work Permit Requirements
If your company is classified under the manufacturing sector in Singapore, different foreign worker quotas and Work Permit rules apply compared to the services sector.
Key considerations include:
- The MOM manufacturing sector quota (DRC) allows a higher proportion of foreign workers. For example, manufacturing companies can typically hire foreign workers up to 60% of their total workforce, compared to around 35% in the services sector.
- Work Permit holders can be hired for roles such as assemblers, machine operators, and production workers
- Sector classification affects both Work Permit and S Pass quota calculations
- Employers must still comply with all MOM work permit requirements
This is why some companies review their classification carefully before submitting new work permit applications.
How Trinity Pass Can Help
If your business operations include manufacturing-related activities, you may qualify for a sector reclassification.
When you work with us, we will:
- Review your company’s business activities
- Assess whether a manufacturing sector classification is possible
- Advise on the supporting documents required
- Assist with the submission and follow-up process
We have worked with multiple companies to review their eligibility and guide them through this process.
Review Your Sector Classification Today
If you are currently facing foreign worker quota limitations, it may be worth reviewing whether your company is correctly classified.
A change from the services sector to manufacturing sector could significantly improve your hiring flexibility.
Speak with us to explore whether your business qualifies.