Singapore Business Federation is relieved that there are no further general tightening of manpower policies in Budget 2014 to exacerbate the tight labour situation
- The enhanced measures to spur innovation, provide financing and internationalisation support for growth enterprises
- The extension of PIC for another three years to YA 2018 and the special support for SMEs under PIC+
- Targeted support to help raise construction sector productivity and extension of period of employment of skilled foreign workers for the construction and process industries
Is concerned with:
- Cost impact on SMEs with higher employer CPF contributions for Medisave and for older workers
21 February 2014 [Singapore] – The Singapore Business Federation welcomes the enhanced measures in Budget 2014 to help businesses cope with restructuring and pursue growth. The Federation urges businesses to tap the generous help schemes and incentives to raise workforce skills and productivity and spur growth.
The SBF-led SME Committee has submitted many recommendations to Government to create a more vibrant and sustainable SME sector through targeted support for growth enterprises, those who are surviving and those in sectors requiring special assistance. We are delighted that there was considerable alignment of our recommendations with those announced in Budget 2014.
“Growth oriented SMEs will be pleased with the greater support for innovation, financing and internationalisation. SMEC has highlighted the continuing challenges confronting our SMEs in their restructuring journey and will work with the respective government agencies when further details of the various schemes are clearer. We are glad that DPM Tharman has acknowledged the feedback provided by the SMEC in his Budget Statement.”
Lawrence Leow, Chairman, SBF-led SME Committee
“The Singapore Business Federation is relieved that no major new manpower measures were announced in Budget 2014 to exacerbate the tight labour situation. Notwithstanding, rising operations costs and manpower issues continue to be a challenge for businesses. Increase in employers’ CPF contributions will not help and will impact small businesses as they employ more older workers proportionately. Clearly, Government recognises this and we welcome the one-year cost offset provided for companies in lieu of the increase in employers’ CPF contribution. The Federation is delighted with budget measures in support of growth enterprises, as well as the introduction of the SME-centric PIC+ scheme and extension of PIC for a further three years to YA 2018.”
Ho Meng Kit, CEO, SBF