Business costs main concern for S'pore
firms
By S Ramesh | Posted: 03 January 2011 1430
hrs
SINGAPORE: Business costs have become a
primary concern for Singapore firms.
They have outstripped other concerns such as access to financing
options and the lowering of foreign worker levies and quotas among
members of the Singapore Chinese chamber of Commerce and Industry
(SCCCI).
Nearly 66 per cent of members called for a reduction of business
costs.
In its Budget Wish List, the chamber is calling for a reduction in
the cost of utilities, fees such as licensing charges and online
application and information charges levied by government
agencies.
Taken altogether, SCCCI said these government charges add to the
financial burden of SMEs and start-up companies.
Other items on their wish list include: increasing the level of
government subsidies for customised training courses to meet the
specific requirements of companies as Singapore transforms into a
knowledge-based economy.
They are also calling for more incentives to be given to SMEs to
venture overseas jointly as a group or consortium with their
industry counterparts, and pool their resources to clinch more
deals.
The Chamber also wants the corporate income tax lowered to 16.5 per
cent to be comparable to other regional economies like Hong Kong.
The headline corporate tax rate for Singapore is 17 per cent.
It is also hoping for a reduction of property tax and provision of
more rental rebates.
Finally, the Chamber hopes for a reduction in foreign worker levy
for foreign workers with specialised skills and professional
qualifications. It said many SMEs are hit by the labour crunch and
a shortage of skilled workers in specific industries.
Furthermore, the benefits of re-training and re-skilling local
workers will take time to materialise.
Meanwhile a survey of business outlook and sentiments for 2011
amongst the Chambers members indicate that despite the tampering of
growth expectations by the government for 2011, businesses are even
more optimistic about their prospects in the New Year.
Nearly 66 per cent of firms have forecast increased revenue
compared to the 2010 survey of SMEs between June and August where
45 per cent of respondents indicated higher revenue.
Only eight per cent of respondents are expected to reduce
hiring.
-CNA/ac
Source:
http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1102440/1/.html