S pass & EP the saga continues...

Firstly, experienced degree holders should get an EP, not S-Pass. But since the application procedure (and even form) is the same for both, I assume your company applied for an EP.
The "salary not commensurate" comment might mean it's too high or too low, and either for the job profile or for the job seeker's background. You can use the SAT tool on MoM's website to figure out which pay range you need to be in for an EP (please dsregard S-Pass eligibility there).

thanks for your reply Beppi, we have used the SAT tool and have come to realize that a salary of 6k per month is sufficient for an EP, I have spoken to people in the same similar job profile and the salary of around 6550sgd is an average across the industry.

What I can see from your employer’s counter appeal was much higher to their earlier offer ($5k), might be looking suspicious at MoM. What was your employer’s rational during their appeal (when they withdrawn your post graduate degree and increased your salary 30% higher to $6500)? Unless until employer doesn’t show proper and a valid reason, MoM may not validate appeal. Good luck

oh! i didnt know that was an issue, thanks for bringing that up, what would the suspicion be?  I am sure they have documented the fact that they have tried to hire locals for the same role and provided proof of unavailability of local talent to fill the position and thus have decided to raise my salary for me to be able to move to singapore, Also will the MOM request for reasons of increase in salary? How will they communicate the need if they were to? the employer has been extremely open and transparent with me, in the whole process

MoM will not allow employers to "try their luck" with too small salaries and re-epply with a higher one if that fails (this is often coupled with an illegal arrangement where the pay rise isn't really paid out). Therefore, the only chance for this to work is if the employer attaches a very convincing statement why you are now suddenly worth so much more to them.
The fact that they first tried to get you on a pay much below market value, and that they apparently know neither the difference between S-Pas and EP, nor which degrees are recognised or how MoM works makes me think you should better go for the other job offer you mentioned.

"Convincing statement" means a line explaining that they were unable to find local talent and thus would like to bring me on board? i guess they have already done that also providing them proof of job board postings and interviewed candidate lists, yet so still the pass was rejected.
So in that case the other job offer (willing to match the salary)should go through without any issues, would i be right to assume that?

No, just saying they cannot find a local candidate (which they already did in the original application) won't be enoiugh!
As I said, they must convince that you are suddenly worth so much more to them than in the first application - and that the pay increase is NOT an attempt to outfox MoM's salary criteria. They are always very suspicious of this when pay is increased on appeal or re-application and usually reject unless they are sure this case is different.

My firm has decided to appeal providing them with justification for pay rise and inability to find a local fit, lets see how this goes.

So i just heard from the Company that the reason for rejecting my EP was (as suggested by MoM) the significant salary jump from my last stint in SGP in 2012 to the latest one in 2017, they feel that its quite high and with this salary they can find local talent to suit the role, and thus rejected the EP, so now the company has provided them reasons explaining my candidature and the inability to find local hires, i hope this works, I wonder how the change in salary from 2012 vs 2017 matters that much to them.