SINGAPORE: The Association of Small and Medium Enterprises said it views the Workers’ Party’s Population Policy Paper as another blow to the local SME community.
The association said it is already facing a severe manpower crunch from the government’s tightening of foreigners and now the Workers’ Party is proposing an even more drastic deceleration.
The association said the construction industry, the F&B industry and others in the service sector simply cannot recruit enough Singaporeans.
It added that as these SMEs throw in the towel, Singapore Professionals, Managers and Executives will soon find the upward spiralling effect of less manpower to manage, fewer companies to serve, to audit and to provide financial services to and that will lead to reduction in jobs for Singaporeans.
The association said it supports the view that the government should encourage resident workforce growth, however, not at the expense of simply cutting it down to zero foreign workforce growth.
ASME added that increasing resident workforce growth should complement a gradual tightening of the inflow of foreign workers. It said the tightening of inflow of foreign worker should be done progressively, together with more incentives and aid to help SMEs in the face of the current economic transition.
As seen with the recent abrupt changes in foreign worker reduction policy, this has already caused many SMEs to relocate or close down, causing a loss of income and jobs for Singaporeans as well.
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