SINGAPORE should press on with economic restructuring, but pay closer attention to managing the risks posed by escalating business costs and potential global shocks, said Mr Liang Eng Hwa, the chairman of the Government Parliamentary Committee for Finance and Trade and Industry.

Mr Liang, who is an MP for Holland-Bukit Timah GRC, said in Parliament on Friday that he welcomed the move in this year's Budget to defer for a year the planned hikes on foreign worker levies that companies have to pay.

Still, he called on the Government to leave room for further foreign worker levy adjustments in the event of adverse changes to the external environment or business costs.

"On the horizon, there are possible events that could pose as shocks to the economy such as a sudden change in overall global demand, rising interest rates, and potential geopolitical hotspots," he added.

Mr Liang urged the Ministry of Trade and Industry to "closely watch overall business costs and be more proactive in managing any potential downside risks from restructuring".