SCCCI calls on Govt to help with business costs, manpower, green efforts in Budget wish list

SINGAPORE – Reducing business costs and getting help to meet the challenges of going green head a Budget wish list at the Singapore Chinese Chamber of Commerce and Industry (SCCCI).

The burden of rising costs is one of the key issues highlighted in a survey the chamber conducted earlier in 2024, alongside the difficulties smaller firms face in the area of sustainable practices.

SCCCI president Kho Choon Keng noted on Dec 20: “We call for measures to ease business costs, improve workforce productivity, and accelerate the adoption of green capabilities.

“Our recommendations are designed to sharpen the competitive edge of Singapore companies while addressing near-term challenges.”

He emphasised a need for targeted policies to help businesses navigate an increasingly complex global environment.

The SCCCI’s recommendation for Budget 2025 said the Government could help to lower business costs and quicken the pace of sustainability efforts among small and medium-sized enterprises (SMEs) keen to benefit from the green economy.

It urged the Government to not further increase compliance costs, charges and fees that will aggravate the cost burden on firms. The Government could also consider a higher threshold for corporate income tax rebates.

The SCCCI suggested introducing an Enterprise Sustainability Programme-Lite (ESP-Lite) scheme to help smaller companies in their sustainability efforts, which are being hindered by high costs, a problem faced by 53.1 per cent of businesses polled in the survey between June and August 2024.

“The ESP-Lite scheme will make available to SMEs a simplified application process to benefit from government funding support as they embark on their first steps to embrace sustainability practices, including producing carbon or emission reports and adopting solutions to reduce carbon footprint,” said the SCCCI.

The survey, which polled 651 respondents in senior positions, largely in SMEs and across diverse sectors, also found that 75.6 per cent of firms project a rise in business expenses, while 57 per cent are bracing themselves for lower profits.

Manpower issues, especially an inability to attract and retain local employees with the necessary skills, are prominent concerns among those polled. This has prompted the chamber to call for a balanced approach in the Budget towards local and foreign manpower, recognising that foreign workers complement local talent.

Some occupations have persistently remained less attractive to local workers and face limitation in further automation, including technicians, drivers in the logistics industry, heavy vehicle drivers, and rank-and-file jobs in manufacturing, engineering, food and beverage and retail, the SCCCI said.

It urged the Government to consider broadening the source countries of foreign workers to meet demand from hard-to-fill jobs.

The chamber also asked the Government to review work permit regulations to allow them to be cross-deployed across legal entities within the same corporate group with the same dependency ratio ceiling, a regulatory limit on the number of foreign workers that a company can employ in proportion to its overall workforce.

This would help businesses optimise their manpower needs, improve productivity and address workforce shortages in specific functions.

There could also be enhanced government support for trade associations and chambers to drive the internationalisation of SMEs.

The survey noted that the main challenges for internationalisation include uncertainties in overseas economic environment, a lack of understanding of markets abroad, including regulations and potential partners, and a shortage of suitable manpower.

The Government could also consider supporting trade associations offering industry-relevant training that leads to employment outcomes.

The SCCCI suggested that SkillsFuture Singapore extend more financial support towards programmes that require industry experts and training providers to impart deep specialised skills.

It also wants incentives to catalyse consolidations, including mergers and acquisitions, and growth of SMEs amid a challenging environment.

Some suggested ways include providing wage support for key employees in critical roles to facilitate hiring and encourage continued employment, and mitigate job losses during the transitional consolidation process.