SMEs see increased demand for screening services, but high costs continue to be a barrier
Since the implementation of the new Complementarity Assessment Framework (Compass) for Employment Pass (EP) applicants on September 1, 2023, more companies are conducting background checks on foreign hires, especially educational qualifications. Screening companies have observed a significant increase in demand, particularly from small and medium-sized enterprises (SMEs), many of which had no prior systems for verification.
The new framework, which requires EP applicants to score at least 40 points across four foundational criteria, has raised the necessity for thorough background checks. However, the cost of these services remains a major obstacle for some businesses, especially smaller firms that continue to avoid the process when possible. Despite this, the increased demand for screening services reflects a shift in how companies are managing the hiring process under the new EP requirements.
