Asme head calls for more flexibility in hiring of foreign workers

SINGAPORE — The head of the Association of Small and Medium Enterprises (ASME) has called for more flexibility in the hiring of foreigners over the long term as he urged the Government to help rein in the costs of doing business.

“If we could adhere to the quality control aspects of the foreign labour policy and given there is not much scope of the levies coming down, what if we could be a bit more flexible on the numbers and start to move towards that (foreign-to-local worker) ratio. A study needs to be done into this and if there is recognition that 1:2 is okay in the long term scheme of things - let’s say we set a timeframe of say ten years - then may be it is time to start from now, whereby we gradually move towards that labour ratio,” ASME president Kurt Wee told TODAY on Tuesday (March 14).

“The adjustment will have direction and businesses will have breathing room, and maybe then MNCs will start to put in more resources in Singapore with better jobs… It is always helpful when businesses find costs manageable, and subsequently, consumers find living costs affordable. We must recognise that cost has an impact on margins and business viability which in turn impact jobs and the cost of living. We have to recognise that we exist within the South-east Asian landscape and not in the middle of western Europe. There are some realities that businesses face,” added Mr Wee.

He made his comments after a panel discussion on the Budget organised by ASME with representatives from the Ministry of Finance, Info-communications Media Development Authority of Singapore, SPRING Singapore. It was moderated by Mr Victor Tay, Chief Development Officer, Nanyang Technological University.

Ms Sim Ann, Senior Minister of State, Ministry of Culture, Community and Youth and Ministry of Trade and Industry (MTI), who was guest of honour at the event, said the Government continues to monitor various aspects of the economy relating to issues raised by businesses as it keeps its focus on helping SMEs. She was replying to questions from SMEs on foreign manpower regulations, the need for foreign worker levies in industries where Singaporeans do not wish to work in, as well as the lack of short-term help for SMEs in this year’s Budget.

“The key is to work together, and the answer lies within this room. This is why we encourage our businesses to not just ask questions but also speak up. Share your experiences, let us know your perspectives. Because working together is going to be absolutely key in the years ahead. SMEs will be a focus of our work, in the MTI family… For instance, on the side of the government, we are reorganising ourselves to deliver help to SMEs more effectively in the form of Industry Transformation Maps,” Ms Sim said.