Bosses say this year’s Budget lacks on tackling the issue of manpower costs

SINGAPORE — Many companies in Singapore are calling this year’s Budget both a socially inclusive and a future-looking one, but more could be given to managing manpower costs and retaining talent.

In a live poll by KPMG at their Budget briefing this morning (Feb 27), almost half of the 41 respondents felt that the Budget lacked tackling of manpower constraints faced by companies. The briefing was attended by about 120-140 CEOs, CFOs and tax directors with listed companies, MNCs and large SMEs.

Many of the participants also felt the significant business themes in this year’s Budget was talent development (40 per cent), followed by the support on innovation (at 31 per cent), internationalisation (19 per cent) and the managing of manpower costs (10 per cent).

Manpower issues are still a concern for companies here in Singapore. It was also noted that the trend of a younger workforce having preferring bigger companies compared to SMEs is breaking down.

“Manpower is a concern for both businesses big and small. It is very difficult to attract and retain talent, this remains one of our biggest challenges where people do have the luxury to job hop as they would in the current economic situation...I think (retaining) talent is a issue for all companies,” added Mr Victor Mills, Chief Executive of the Singapore International Chamber of Commerce.

“We are starting to see young people join SMEs ... I think the ability for SMEs to attract younger staff is breaking down,” said Mr Kurt Wee, President of the Association of Small and Medium Enterprises.