ENHANCED grants and more flexibility in the handling of foreign workers are among 27 recommendations in a report launched on Friday (Nov 1) by the public-private Alliance for Action (AfA) on Business Competitiveness.
Taskforce co-chair and Senior Minister of State for Trade and Industry Low Yen Ling said at the launch: “The government will take the AfA report seriously, and review each one of the 27 recommendations with the relevant ministries and agencies.”
Among the proposed ideas is the expansion of the Non-Traditional Sources Occupation List. Businesses can now hire Work Permit holders from specified additional countries for the roles on this list, which now includes cooks in Indian restaurants, housekeeping workers and porters, and certain roles in food processing and manufacturing.
The taskforce proposes that the list be expanded to include machine operators and labourers in manufacturing, such as metalworking machine-setter operators.
Singapore Business Federation (SBF) chief executive officer Kok Ping Soon told reporters: “To be clear, businesses are not asking to open a floodgate to bring in more foreign workers.
“We have identified specific occupations where we need access to skilled foreign manpower. I don’t think the numbers are going to be large. I don’t think there’s a problem in attracting them to Singapore.”
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Another proposal is to enhance the Manpower for Strategic Economic Priorities (M-SEP) scheme, under which eligible firms can temporarily hire S-Pass and Work Permit holders above prevailing quotas for two years.
The taskforce recommended lengthening this duration, and making more businesses eligible for the scheme.
Of the more than 1,000 eligible companies, only 63 have tapped this scheme, the taskforce noted, so it suggests that the government and trade associations and chambers (TACs) work more closely together to raise awareness and drive uptake.
The report by the AfA, launched in February by the Ministry of Trade and Industry and the SBF, addresses key business challenges across three pillars: manpower, land and regulations.
Manpower
One labour-related proposal is to enhance grants supporting workforce transformation, such as the SkillsFuture Enterprise Credit (SFEC) scheme, which expires in June 2025.
The one-off grant offers companies S$10,000 to support productivity and job transformation initiatives. The taskforce suggested extending or repurposing the scheme, such as allowing it to cover a broader range of expenses.
The government could also partner TACs to fund a new pool of advisors. These can help companies assess their needs, create transformation roadmaps, and identify suitable enterprise and workforce programmes.
Land
Under the land category, one proposal is to extend the lease tenures on greenfield industrial sites – undeveloped areas requiring longer build times – by up to three years.
With this extension, businesses can enjoy the full 20- or 30-year lease period to better recover their investments, said Low.
Another recommendation is for industrial landlord JTC to consider flexible lease-renewal options for companies that “have demonstrated strong productivity outcomes and job creation”, and longer lease-renewal tenures for businesses that invest significantly in productivity and redevelopment.
These lease-related changes would give companies greater operational stability and a longer timeframe to amortise their investments.
Regulations
The AfA called for more flexibility to help businesses adopt green solutions.
A key recommendation is to streamline approvals for solar-energy projects by designating the Energy Market Authority as the lead agency.
Another is to allow energy-storage systems, or large battery banks, to be installed in new locations such as building basements, to support broader adoption.
Not all the 27 recommendations require policy adjustments, noted AfA co-chair and SBF vice-chairman Mark Lee.
“Some initiatives can be spearheaded by TACs, allowing (the) industry to take an active role in enhancing Singapore’s competitiveness independently,” he added.
These include recommendations on developing a tripartite advisory on workplace integration; raising awareness about JTC’s lease renewal criteria; and facilitating co-location partnerships to optimise space use.
Over the past nine months, the 19-member taskforce ran 25 dialogues with more than 100 business leaders, consulted 13 TACs, and collaborated with 17 public-sector agencies.
