The Economic Strategies Committee has recommended that the
foreign worker levies be raised, in a bid to move Singapore away
from it's over-dependence on foreigners.
But industries reliant on a strong foreign workforce say their
bottom line will be hurt.
And massive changes will need to take place for companies to stay
viable.
Joanne Chan reports.
Foreigners make up nearly 90 percent of the
workforce in the construction industry.
And companies say it's difficult to attract locals, due to the long
hours and back-breaking work involved.
With the proposed changes to the foreign worker levies,
construction businesses are now staring at a cut in manpower, or
face higher costs.
Executive Director of the Singapore Contractors Association, Simon
Lee, said companies will have to relook their hiring
policies.
The Association represents more than 2,000 companies,
who collectively hire 200,000 workers.
"We got to look at, are they (foreign workers) effectively used,
whether there's any spare capacity that we can actually look at and
even cut it if necessary."
Another option is for companies to invest in new technology to make
up for the shortfall in manpower.
But these changes will not come easy, said Chief Executive of the
Singapore International Chamber of Commerce, Phillip
Overmyer.
"The way we build buildings in Singapore is not at all like the way
high-end countries build buildings. Japan, Australia and America
and other countries, use completely different technologies that
don't employ nearly as much foreign labour. So if we're going to
make those changes I think it could be a very difficult time for
the construction industry to adapt to that."
However, Mr Overmyer noted that some industries which were
traditionally reliant on foreign workers, have already made
productivity improvements by turning to
technology.
"In the manufacturing sector, they have been doing this for a very
long time. Raising productivity, they are always putting new
equipment in, higher technology, and they keep moving up the
line."
The Economic Strategies Committee did not reveal how much the
foreign worker levies will be raised.
More details will be announced by the Government during the Budget
later this month.
--938Live
