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Singapore cannot afford to close borders completely to foreign workers: SBF
THE Singapore Business Federation (SBF) on Monday said the Republic cannot afford to close its borders completely to foreign workers.
The apex business chamber also said it welcomes the increase in foreign worker levy rebates for the construction, marine shipyard and process sectors announced on Saturday.
On the closing of borders, SBF chief executive Lam Yi Young said businesses fully understand and support the need for measures to lower the risk of importing Covid-19 cases.
“However, we also cannot afford to close our borders completely and deny entry to all foreigners,” he said in a press statement.
Mr Lam noted there must be a risk management framework in place for some foreigners to be able to come into Singapore, with the appropriate testing and quarantine regimes.
SBF’s statement comes after the Singapore government announced on May 7 that it is reducing entry approvals for work pass holders entering the Republic in the coming weeks.
SBF has also asked for the new restrictions on entry approvals to be relaxed as soon as the Covid-19 situation allows. In the interim, it also hopes that the list of lower-risk regions can be expanded to allow for more worker sources.
It has also reasoned that insufficient manpower may affect Singapore in areas other than delays in construction projects which has hit both the private and public housing sectors.
Some top sectors with unfilled manpower demand include food and beverage, healthcare, electronics manufacturing, retail, and logistics and transportation, SBF noted, adding it expects a “further squeeze” for these businesses with the latest reductions in entry approvals for work pass holders from higher-risk countries.
Essential services such as waste management, healthcare and transport will be hit in the immediate term if they are not able to get the workers needed. In the long term, there may also be “consequential impact” on job creation and job opportunities for Singaporeans, SBF said.
“Insufficient manpower will also affect investors’ confidence in Singapore and Singapore’s competitiveness and attractiveness as a business destination. Should investors decide to exit Singapore as a result, this will mean job losses for Singaporeans,” SBF added.
On Saturday, the Ministry of Manpower said from May to December 2021, the foreign worker levy rebate for each work permit holder in the construction, marine shipyard and process sectors will rise to S$250 from S$90 per month. About 15,000 firms will stand to benefit from this increase.
“This will provide much needed relief to businesses in these sectors that have been impacted by the tighter border restrictions and stricter safe management measures,” SBF said on Monday in response.
Although those from the construction, marine shipyard and process sectors, as well as those from lower-risk regions will largely not be affected by the reduction in entry approvals for work pass holders, the tightened measures will still have significant impact on business, SBF said.
Source: https://www.businesstimes.com.sg/government-economy/singapore-cannot-afford-to-close-borders-completely-to-foreign-workers-sbf