EP Renewal rejected

Obviously, MoM doubts that the company can pay your salary.
If they cannot convince MoM of the opposite, you should look for another job.

Thank you for your prompt reply. But I have been with the same company for some time now and have had few renewals already where the company's status did not change meaning it has always been the cost center. Therefore, not sure what has changed this time?

Moreover, since the company employs locals and actively contributes to the CPF, isn't it good enough to show that the company can pay my salary as it has always been in past.

This is highly confusing

It’s not confusing, there is additional scrutiny on applications now. The company may not have been questioned in the past, things have evolved and you may find on several other posts how tough it is to secure a renewal/ new EP application.

If I were you, would request the employer to furnish details or some sort of justification around how the income flows work, how are operating expenses etc being paid including salaries- all the good things, to ensure MoM understands how they are affording it all.

Don’t leave it for MoM to check info around from other departments, do your bit to clarify your application in the best interest of all.

Thank you!