INVEST in productivity instead of relying on foreign workers, is the government's response to the issue of the foreign worker levy hike, raised at a dialogue session between a panel of Ministers and the local business community. Companies here are also being encouraged to invest in innovation and technology to increase productivity in order to grow their business.
The Australian construction worker was cited as an example in the successful blending of technology and mechanisation, and was shown to be more productive and efficient than the average Singaporean worker.
The issue of foreign labour has been a hot topic in Singapore. Many Singaporeans have expressed worry over the increased job competition from foreign workers and the recent influx with local businesses growing more reliant on foreign labour. Foreign worker levies serve to control the number of foreign workers in Singapore.
Starting July 1, levy rates for most Work Permit holders will increase by between $10 and $30 per month. They range from $150 to $470 now.
Rates for S-Pass holders, which are workers with mid-level skills, will at least double from the current rate of $50 per month. Foreign worker levies will be raised gradually over the next three years to complement the Government's efforts to boost the productivity of firms.
Led by Finance minister Tharman Shanmugaratnam, Secretary-General of NTUC Lim Swee Say, Manpower Minister Gan Kim Yong, and Minister from Prime Minister's Office Lim Hwee Hua, the dialogue session aimed to discuss how local businesses can leverage on the economic strategy recommendations announced at the Budget debate in February. Close to 600 members from the local business community took part in the dialogue.
-- ST