This chapter introduces Part 2: Impact Area of Business Functions, focusing on the six Critical Business Functions (CBF-1 to CBF-6) of the Ministry of Manpower (MOM).
The intent of this chapter is to systematically examine how disruptions to MOM’s core regulatory, operational, policy, and corporate functions may translate into tangible and intangible impacts across financial, legal, operational, reputational, and socio-economic dimensions.
Given MOM’s central role in safeguarding labour market stability, workforce safety, and national manpower resilience, even partial degradation of these functions can have cascading consequences for employers, workers, and the wider economy.
This chapter, therefore, provides readers with a structured lens to understand where and how impacts manifest when critical functions are disrupted.
The purpose of this chapter is to support informed Business Impact Analysis (BIA) decision-making by establishing a consistent, evidence-based assessment of impact areas across CBF-1 to CBF-6.
Readers are guided to identify the severity of potential impacts, articulate estimated financial losses using defined calculation approaches, and assess the extent to which Minimum Business Continuity Objectives (MBCOs) may be affected.
By the end of this chapter, readers should be able to clearly distinguish between high-impact and low-impact business functions, understand the rationale for impact prioritisation, and apply this understanding to subsequent continuity planning, resource allocation, and resilience enhancement activities.
| Sub-CBF Code | Sub-CBF | Impact Area | Financial Impact - Monetary Loss (Estimated) | Financial Impact - Calculation of Monetary Loss (State Formula for Calculations) | Impact on MBCO - Affect MBCO | Impact on MBCO - Impact | Remarks - Description |
|
1.1 |
Policy & Regulation Design |
Strategic / Regulatory Compliance |
High (e.g., S$10M - S$50M annually) |
Loss = GDP Impact × % Workforce Disruption × Duration |
Yes |
Critical – Policy failures disrupt the entire labour market framework |
Development of fair and sustainable labour policies. |
|
1.2 |
Licensing & Permits |
Legal / Operational / Reputational |
Moderate to High (S$5M-S$20M) |
No. of Delayed Permits × Average Loss per Worker per Month |
Yes |
Significant – Direct impact on workforce deployment |
Issuance of work passes and permits. |
|
1.3 |
Inspections, Monitoring & Investigation |
Legal / Compliance / Safety |
High (S$10M-S$30M) |
No. of Incidents × Avg. Compensation + Reputational Cost |
Yes |
Critical – Workplace safety and compliance |
Conduct inspections and investigations. |
|
1.4 |
Adjudication & Dispute Resolution |
Legal / Industrial Relations |
Moderate (S$2M-S$10M) |
No. of Disputes × Avg. Productivity Loss × Duration |
Yes |
High – Failure may escalate industrial action |
Mediation and resolution of disputes. |
|
1.5 |
Enforcement Actions & Sanctions |
Legal / Deterrence / Reputational |
High (S$5M-S$25M) |
No. of Non-Compliant Cases × Penalty Avoided + Enforcement Costs |
Yes |
Critical – Weak enforcement erodes trust |
|
|
1.6 |
Stakeholder Engagement & Education |
Reputational / Social / Compliance |
Moderate (S$1M-S$5M) |
(No. of Misguided Stakeholders × Avg. Compliance Cost) × Non-Compliance Rate |
Yes |
Moderate – Impacts overall compliance |
Public awareness & education |
|
1.7 |
Regulatory Intelligence & Risk Management |
Strategic / Risk / Policy |
High (S$10M-S$40M) |
Est. Workforce Affected × Avg. Cost × Duration |
Yes |
Critical – Intell gaps undermine policy |
Risk detection & forecasting. |
|
2-1 |
Policy & Planning |
Strategic / Regulatory / Economic |
SGD 1M-2M |
Loss of productivity hours × avg GDP + policy delay cost × # sectors |
High |
Delay in policy updates impacts labour inflow management |
Foreign workforce policy planning. |
|
2-2 |
Work Pass Application & Issuance |
Operational / Reputational / Legal |
SGD 2M-5M daily |
(# pending apps × avg employer downtime cost per worker) |
Very High |
Directly impacts employer ops and worker availability |
|
|
2-3 |
Arrival, Onboarding & Deployment |
Service / Social / Health & Safety |
SGD 500K-1M |
(# delayed workers × avg daily wage × downtime) |
High |
Bottlenecks affect onboarding & deployment |
|
|
2-4 |
Monitoring, Compliance & Enforcement |
Legal / Regulatory / Reputational |
SGD 1M-3M |
Estimated penalties avoided × compliance downtime + trust loss |
High |
Reduced ability to detect violations |
Employer/worker compliance. |
|
2-5 |
Renewal / Transfer / Exit Management |
Operational / Economic / Legal |
SGD 1M-2M |
(# expiring passes × avg renewal delay cost) |
Moderate to High |
Impacts manpower continuity and transition |
Pass renewal & cancellations. |
|
2-6 |
Support Services & Well-being |
Social / Health & Reputational |
SGD 500K-1M |
(# affected workers × avg support cost × duration) |
Moderate |
Affects worker welfare & public confidence |
Welfare & mediation support. |
|
3.1 |
Policy & Standards Development |
Regulatory governance |
Medium (S$200K-S$500K) |
Cost of policy delays + remediation |
Yes |
Delays compromise regulatory leadership |
|
|
3.2 |
Legislative & Regulatory Oversight |
Legal compliance |
High (S$500K-S$2M) |
Regulatory non-compliance penalties + legal costs |
Yes |
Breach of statutory obligations |
|
|
3.3 |
Risk-Based Inspections & Enforcement |
Worker safety, assurance |
Very High (S$1M-S$5M+) |
Increased accident costs + enforcement backlog |
Yes |
Direct threat to worker safety & credibility |
Prioritised inspections. |
|
3.4 |
Monitoring & Surveillance Programmes |
Early warning |
High (S$800K-S$3M) |
Cost of undetected risks + reactive interventions |
Yes |
Reduced ability to detect emerging risks |
Workplace surveillance. |
|
3.5 |
Accident Reporting & Investigation |
Incident response |
Very High (S$1M-S$10M) |
Delayed investigations + litigation + compensation |
Yes |
Delays undermine trust |
Accident intake & investigation. |
|
3.6 |
Stakeholder Engagement & Education |
Industry compliance |
Medium (S$150K-S$400K) |
Cost of re-engagement + non-compliance incidents |
Partial |
Disrupted outreach affects awareness |
Engagement with employers/ workers |
|
3.7 |
Competent Person Certification |
Workforce competency |
High (S$500K-S$2M) |
Backlog processing + interim controls |
Yes |
Delays affect industry capability |
WSH professional certification. |
|
3.8 |
Performance Monitoring & Reporting |
Governance |
Medium-High (S$300K-S$1M) |
Cost of inaccurate reporting + audits |
Yes |
Impaired strategic decisions |
WSH performance tracking |
|
4.1 |
Labour Market Analysis & Forecasting |
Economic stability |
Estimated cost of delayed policy response |
(Cost of Delay) × (# Affected Programs) |
Yes |
Delayed insights affect policy-making |
Labour market forecasting. |
|
4.2 |
Job Matching & Placement Services |
Employment services |
Cost of unemployment benefits if delayed |
(# Unmatched × Avg Unemployment Benefit) |
Yes |
Rise in unemployment |
Job placement continuity. |
|
4.3 |
Work Pass & Foreign Talent Policy Services |
Immigration policy compliance |
Loss of foreign talent, business delays |
(# Delayed Apps × Avg Salary) |
Yes |
Hiring delays affect sectors |
Work pass & policy services |
|
4.4 |
Skills Development & Transition Support |
Training continuity |
Loss of training funds due to cancellations |
(# Cancelled Sessions × Cost per Session) |
Yes |
Training delays affect the workforce |
|
|
4.5 |
Incentives & Employment Support Schemes |
Scheme disbursement |
Cost of delayed disbursements |
(Delayed Incentive) × (# Recipients) |
Yes |
Affects vulnerable employment groups |
Support schemes |
|
4.6 |
Stakeholder Engagement & Tripartism |
Labour relations |
Cost of missed engagements |
(# Missed Engagments × Negotiation Cost) |
Partial |
Indirect effects on policy alignment |
Stakeholder engagement. |
|
4.7 |
Monitoring & Rapid Response |
Crisis response efficiency |
Cost of delays in crisis response |
(Delay Duration) × (Cost of Response) |
Yes |
Delays worsen the disruption |
Rapid response functions |
|
4.8 |
BCM Integration & Continuity Processes |
Organizational resilience |
BCM system failures increase response times |
(System Downtime × Avg Downtime Cost) |
Yes |
Slows recovery |
BCM integration. |
|
5.1 |
Environmental Scanning & Labour Market Analysis |
Strategic disruptions |
Loss in strategic alignment & revenue opportunities |
Loss of revenue opportunities due to unforecasted labour market shortages |
Yes |
High delays in policy initiatives |
Forecasting disruptions. |
|
5.2 |
Policy Development & Formulation |
Policy delays |
Loss of economic opportunity |
Lack of timely policy responses causes inefficiencies in the labour market response |
Yes |
Medium – delayed response |
Policy creation. |
|
5.3 |
Strategic Workforce Planning & Scenario Modelling |
Workforce allocation |
Reduced productivity & hiring cost increases |
Inability to adjust workforce needs to meet strategic goals |
Yes |
High misalignment with goals |
Strategic planning. |
|
5.4 |
Stakeholder Engagement & Consultation |
Communication disruptions |
Loss of support for policies |
Inability to gain stakeholder buy-in, affecting policy effectiveness |
Yes |
Medium – implementation challenges |
Stakeholder engagement. |
|
5.5 |
Policy Implementation Planning |
Execution delays |
Increased costs and inefficiencies |
Inefficient implementation of policies leads to resource wastage |
Yes |
High inefficiency |
|
|
5.6 |
Monitoring, Evaluation & Feedback |
Lack of feedback loops |
Missed policy improvements |
Continued ineffective policies and resource misallocation |
Yes |
High risk in adaptability |
Monitoring & evaluation. |
|
5.7 |
BCM Integration & Contingency Policies |
BCM breakdown |
Disruption to strategic initiatives |
Inability to ensure policy continuity during crises |
Yes |
Very High – long-term damage |
BCM contingency integration. |
|
6.1 |
Governance & Strategic Planning |
Strategic oversight loss |
High (missed opportunities, fines) |
Estimated cost of missed actions |
Yes |
Delays in project approvals & non-compliance |
Strategic governance continuity. |
|
6.2 |
Financial Management & Resource Allocation |
Delays in financial ops |
Medium (budget impact) |
% Operational budget × delays |
Yes |
Affects budget & staff compensation |
|
|
6.3 |
Human Resource Continuity |
Loss of personnel |
High (payroll/hiring cost) |
Payroll cost + replacement cost |
Yes |
Workforce shortages affect services |
HR continuity. |
|
6.4 |
Procurement & Contract Management |
Delays in procurement |
Medium |
Avg cost of delayed contracts |
Yes |
Project delays & cost overruns |
Procurement continuity. |
|
6.5 |
IT Infrastructure & Digital Services |
Loss of IT systems |
Very High (downtime + breach costs) |
Downtime + cybersecurity + restoration |
Yes |
Halts operations, delays decision-making |
IT continuity. |
|
6.6 |
Internal Administration & Facilities Mgmt |
Facility disruptions |
Medium (downtime & repairs) |
Facility downtime & repair costs |
Yes |
Facility disruptions could affect the day-to-day operational efficiency and the safety of employees |
Administrative and facilities management is essential for MOM’s internal operations. Facility disruptions could lead to inefficiencies and employee safety concerns. |
In conclusion, Part 2: Impact Area of Business Functions establishes a critical foundation for MOM’s overall Business Impact Analysis by translating abstract disruptions into concrete, assessable consequences.
The insights derived from evaluating impact areas across CBF-1 to CBF-6 enable management to prioritise recovery strategies, justify resilience investments, and align continuity objectives with MOM’s statutory and societal responsibilities.
This chapter serves as a key bridge between understanding MOM’s business functions and the design of effective, proportionate, and risk-informed continuity and resilience strategies in the subsequent chapters.
| Resilient Support: Implementing Business Continuity Management at the Ministry of Manpower | |||
| eBook 4: Consolidate and Report Your BCM Implementation | |||
| Consolidated Report for BIAQ (Part 1 to Part 6) for CBF-1 to CBF-6 | |||
| PM: BIA | BIAQ T1 P1 | BIAQ T1 P2 | BIAQ T2 P3-1 |
| Consolidated Report for BIAQ (Part 1 to Part 6) | |||
| BIAQ T2 P3-2 | BIAQ T2 P4 | BIAQ T3 P5 | BIAQ T3 P6 |
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