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The Straits Times (Singapore)

Focus Budget on jobs, productivity in slowdown: firms

They hope for stronger safety nets, help in managing costs, cashflow

(SINGAPORE) Businesses here are hoping for measures to prop up jobs and productivity ahead of an expected economic slowdown.

Chief executives of companies across sectors, responding to BT's call for views on what they wish to see in Budget 2012, said that they would appreciate some help in managing rising business costs and tight cashflow too.

The upcoming Budget 'should adopt a 'remain competitive, remain employed' approach in preserving jobs by keeping the cost of doing business in Singapore attractive', says Philippe Huinck, South and South-east Asia regional managing director of global medical services firm International SOS.

Employment was a common concern among the CEOs for several reasons - reduced access to foreign manpower, Singapore's ageing workforce and the potential impact that a downturn may have on jobs.

Some, such as Adecco SEA regional director Lynne Ng, say that a re-run of the Jobs Credit scheme - introduced in the 2009 global financial crisis to save jobs by subsidising wage bills - would be welcomed. This could be tweaked to target only industries experiencing difficulties, suggests PrimeStaff Management Services managing director Ronald Lee.

Many also favour incentives to spur productivity gains to help keep or create better jobs. 'Talent creation and retention will be particularly central,' says Lim Kok Hin, South and South-east Asia vice-president, business imaging solutions group, Canon. He suggests more subsidised training programmes and grants for R&D and innovation to strengthen the existing workforce's skills.

Ambition managing director for Singapore Paul Endacott also favours measures to 'promote training and development, encouraging employees to upgrade their skills so organisations are better prepared for when the economy improves'. Joshua Yim, CEO of another recruitment firm, Achieve Group, hopes in particular for schemes to help local SMEs hire top talent.

Incentives for firms to hire elderly workers were raised by several CEOs. 'Apart from developing a culture that values older employees instead of undermining their experiences and capabilities, setting aside funds for initiatives encouraging the employment of senior workers is imperative,' said Best World International group CEO Dora Hoan.

While keeping jobs is a concern, on the flipside, others say that there remains a shortage of labour to fill jobs previously held by foreign manpower, now that Singapore's foreign worker policy has been tightened.

PeopleWorldwide Consulting managing director David Leong thinks that the dependency ratio and levies can be tweaked to reflect the fact that despite job redesign and automation, certain jobs are unable to attract Singaporeans. He cites the construction, offshore and marine, and other service sectors with irregular work shifts.

As for highly skilled employment, Siemens president and CEO Lothar Herrmann thinks that the Budget should emphasise talent management, and strengthen Singapore's ability to attract global talent, especially since many booming Asian cities today offer great job opportunities and a very high standard of living at a comparatively low cost. The Budget 'should encourage global and local businesses to set up and keep their bases here to reach out to other parts of Asia', he says.

A lower corporate tax rate would help offset rising costs while continuing to 'attract interest from global companies', suggests Jay Gee Enterprises managing director R Dhinakaran.

SMEs, often the first to feel the strain on cashflows in a downturn, also hope for financing support. But Lim Soon Hock, managing director of corporate advisory firm Plan-B ICAG, says that what is needed is not more schemes, but a liberalising of terms and conditions on existing schemes so that deserving SMEs can qualify.

Quite apart from the economy and costs, some business leaders also hope for stronger social safety nets to support the underprivileged. 'Those who have fallen through the cracks will appreciate whatever help the government can extend to them,' says Andrea Ross, Robert Walters managing director for Singapore and Malaysia.

While advocating efforts to help needier citizens find jobs and get trained, Patrick Liew, CEO of HSR Property Group, adds that 'the task of helping the neediest should not just fall on the government's shoulders'. The growth of more social enterprises should be fostered, he says.

In an indication of what may be unveiled on Budget Day, Feb 17, Prime Minister Lee Hsien Loong said on Saturday that the elderly and the poor, who are most vulnerable in times of uncertainty, will receive more help. But, repeating a point made previously, he said that the short-term economic cycles must not distract from the importance of investing for the longer-term: helping companies to upgrade, investing in people and rejuvenating housing estates.

Having just returned from the World Economic Forum in Davos, Mr Lee also assured that there is 'no need for panic' as the current downturn is not a repeat of the 2008/9 global financial crisis.

Economists have said that the significantly milder downturn, barring any shocks, suggests that huge fiscal stimulus to the tune of Budget 2009 is unlikely.

Teh Shi Ning