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Budget 2014: CPF hikes will further squeeze profits, say bosses

They say resulting rise in labour costs could drive up prices and affect competitiveness

Published on Feb 23, 2014 10:15 AM

Company bosses say higher employer Central Provident Fund (CPF) contributions for all workers will put an even tighter squeeze on their profits.

They add that the resulting rise in labour costs could eventually drive up the prices for consumers.

While the move will help workers feel more secure about their savings, it might affect Singapore's overall business competitiveness, bosses told The Sunday Times.

In last Friday's Budget, the Government unveiled a 1 percentage point hike in the employers' CPF contribution rate for all workers from January. This will be channelled into the Medisave Account.

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