SRA Calls For Relaxed Worker Quotas
January 27, 2025
Credits: The Business Times
The Singapore Retailers Association (SRA) has put forth a detailed set of recommendations for Budget 2025, emphasizing the need for urgent reforms to address the ongoing manpower challenges faced by the retail sector. The association is calling for a relaxation of foreign worker quotas and a reduction in levies, measures aimed at enabling businesses to better manage labor shortages while staying competitive in a rapidly evolving industry landscape.
At the heart of SRA’s proposal is a suggested 20% to 30% reduction in foreign worker levies for service workers who have obtained the Workforce Skills Qualifications (WSQ) certification. This targeted levy adjustment not only reduces operational costs for businesses but also incentivizes the employment of skilled foreign labor, thereby enhancing overall service quality within the retail industry. The SRA believes this initiative will create a win-win situation by bridging manpower gaps and raising service standards across the sector.
The SRA has also called for a comprehensive review of Singapore’s workforce policies to ensure they remain flexible and adaptable to the current economic climate. This includes providing retailers with more leeway to hire skilled foreign workers to supplement the local workforce. By addressing these manpower concerns, retailers can focus on adopting digital transformation strategies and exploring innovations to remain resilient in a post-pandemic environment.
The retail sector has been particularly hard hit by labor constraints, especially following the challenges brought about by COVID-19. With the sector facing rising costs, evolving consumer behaviors, and the demands of digitalization, the SRA underscores the importance of manpower reforms as a cornerstone for ensuring sustainable growth. The association’s recommendations aim to create a conducive environment where businesses can thrive, jobs can be safeguarded, and the sector can continue contributing significantly to Singapore’s economy.
In addition to manpower-related issues, the SRA is advocating for broader support for retailers’ business transformation efforts. This includes fostering stronger partnerships between public and private sectors to streamline processes and reduce costs for retailers adopting new technologies and digital tools.
By implementing these measures, the SRA envisions a retail industry that is better equipped to meet future challenges, remain competitive on the global stage, and deliver enhanced experiences for consumers. These proposals are in line with Singapore’s larger goals of reinforcing its reputation as a world-class retail destination and ensuring its economic growth remains robust in the face of changing global trends.