By Asia Samachar | Singapore |
The Singapore Indian Chamber of Commerce and Industry (SICCI) has urged the Government to review Singapore’s local-to-foreign worker ratios and introduce more flexible manpower rules for sectors facing chronic labour shortages.
These are among the chamber’s top recommendation in its newly submitted Budget 2026 paper.
The call follows growing concerns from SMEs over tightening S Pass quotas, rising levies and worsening manpower gaps that have left many heritage trades, micro-enterprises and service sectors struggling to stay operational.
The S Pass quotas limit the number of mid-skilled foreign workers companies can hire, typically set at 10% of the total workforce in the services sector, and 15% in the construction, manufacturing, marine shipyard, and process sectors. This cap is part of a broader dependency ratio ceiling (DRC) for all foreign workers (S Pass & Work Permit), and employers must pay a monthly levy for each S Pass holder, according to the Ministry of Manpower’s website.
SICCI said manpower strain remains the single biggest barrier to business continuity and transformation, compounded by cost inflation and industry disruption driven by shifting consumer behaviour and regional competition.
“Budget 2026 presents a timely opportunity to strengthen Singapore’s SME backbone and bolster business transformation,” said SICCI Chairman Neil Parekh in a statement emailed to Asia Samachar.
Its recommendation leads a broader set of proposals drawn from a roundtable held on 28 October 2025 and an online survey involving more than 600 businesses under SME Centre@SICCI.
Calls for greater manpower flexibility and cost relief
To ease these pressures, SICCI is recommending differentiated manpower rules for micro-enterprises and heritage businesses, as well as flexible or seasonal work-pass schemes during festive peaks. These measures, it said, would help stabilise day-to-day operations while supporting long-term workforce transition.
On cost pressures, the chamber proposed property tax rebates or a 1–2% plough-back for heritage precinct associations such as the Little India Shopkeepers and Heritage Association (LISHA). It also suggested designating Little India as a Historic District to recognise its cultural and tourism value.
SMEs also highlighted the burden of rising rental and operating expenses. To address this, SICCI called for expanded access to micro-loans, more targeted CDC voucher disbursements and a review of escalating employee healthcare insurance premiums.
Boosting skills, competitiveness and start-up funding
To improve workforce transition, SICCI proposed channelling parts of the SkillsFuture budget toward simplified survival or wage-support schemes, increasing credits for mid-career workers and retirees, and raising the Progressive Wage Credit Scheme cap from S$3,000 to S$5,000. It also urged wider support for in-house training.
The chamber’s recommendations additionally cover competitiveness and sustainability, including incentives for green appliances, carbon rebates for companies meeting environmental benchmarks and greater support for youth-led climate initiatives.
Start-ups participating in the consultation pointed to persistent early-stage funding gaps. SICCI’s proposals include micro-grants or convertible notes of S$50,000–S$100,000, a single digital grant portal, a Community Innovation Fund and incentives to encourage angel investment.
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