Firms must transform to attract workers amid demands for higher wages: Minister

Workers' demands for higher wages amid surging inflation are inevitable, and companies here need to find ways of competing other than with low labour costs, said Manpower Minister Tan See Leng.

"If the only model that our businesses have is depending on low-cost labour, it is not a sustainable model," added Dr Tan, who was speaking to The Straits Times after visiting events management firm Aux Media Group yesterday.

One possible way, in the short term, would be to "slice and dice" a single role into several smaller ones to attract workers in sectors which are in dire need of staff due to a faster-than-expected rebound, such as hospitality, he suggested.

This would allow more flexible working arrangements that can appeal to untapped segments of Singapore's workforce, such as seniors, stay-at-home mothers and those with caregiving responsibilities.

To solve some of the bottlenecks employers face in the medium and long term, Dr Tan said other measures like job redesign are needed.

Dr Tan said: "In the medium and long term... I think we need to think of new ways, whether it's through job redesign, productivity value-added improvements, or even using technology, to see how we can solve some of these bottlenecks."

Increasing workers' wages is a global trend, he said, and employers here are competing with other countries, and not just domestically, for talent.

During his trips abroad, Dr Tan said he has met many individuals who recognise the credibility of Singapore's workers and are willing to pay a premium.

Yesterday, the Ministry of Manpower released advance estimates for the labour market in the second quarter.

One company that transformed itself during the Covid-19 pandemic is Aux Media Group.

It previously specialised in managing in-person events, but the pandemic prompted it to shift to offering extended reality technology.

The technology - which comprises special cameras, and walls and flooring made of display panels - allows presenters to interact with digital graphics that both an online and on-site audience can see, making for more immersive hybrid events.

The company, a pioneer in extended reality in Singapore, has sent its staff for a customised career conversion programme that it designed together with statutory board Workforce Singapore.

Extended reality production head Richard Ong, 42, who participated in the programme from last October to March this year, said: "Extended reality combines the virtual environment with the physical environment, so it actually makes you think about what is real and what isn't - that's what fascinates me about it."