The Singapore Business Federation (SBF) under the Singapore Government expressed pessimism in business sentiments for Small and Medium Enterprises (SMEs) for the next six months because businesses are making lesser profits from the reduction in reliance on cheap foreign labour.
In a media interview, the CEO of SBF Ho Meng Kit threatened that falling profits will result in few hiring and a slowdown in job creation:
“(With) global demand for our goods and services remaining weak and Singapore’s top two trading partners China and Malaysia going through a bad patch, the Singapore economy could be hovering on the edge of recession. Our economy and businesses, particularly SMEs, will be impacted.
The lower turnover and profit expectations may lead to lower hiring expectations in the SME sector. As SMEs are our major employers contributing to 70 per cent of jobs, this could in turn lead to a further slowdown in job creation.”
Earlier this year, the SBF’s Chief Operating Officer Victor Tay expressed their discontentment over a S$60 wage increase for low income workers. The SBF represents businesses with capital of at least S$500,000 and has always spoke up against the tightening of foreign workers and increasing wages for low income Singaporeans.
The timing of this press release is to influence Singaporean voters to vote for the ruling party PAP to continue more adverse pro-immigration policies.
SBF raise opposition to S$60 increase for low-wage workers