SINGAPORE: A majority of employers (83 per cent) have not implemented workforce or workplace changes in direct response to higher energy prices, a snap poll by the Singapore National Employers Federation (SNEF) found.
The poll, conducted from Apr 10 to 16, drew responses from 210 companies across the manufacturing, services and construction sectors, SNEF said in a press release on Monday (Apr 20).
Employers holding off on implementing workforce or workplace changes suggest that most are exploring operational adjustments before resorting to measures that directly affect their employees, the federation said.
For those companies that have implemented changes, about two-thirds indicated they have frozen hiring or delayed expansion plans, while a quarter of them have reduced bonuses, allowance or benefits.
Other measures taken to address the rising costs include reduction of work hours, overtime or shifts, redeployment of staff or cross-training and headcount reduction through natural attrition.
“These are largely calibrated responses aimed at managing costs while preserving jobs,” SNEF said.
Across the board, nearly all respondents (96 per cent) reported higher operating costs amid rising energy prices, while 53 per cent also reported concerns over rising manpower cost pressures.
Among those who reported higher operating costs, around two-thirds face moderate to significant cost increases exceeding 10 per cent.
The most affected operating cost components have been utilities and fuel, with both affecting 70 per cent of companies. These were followed by materials and supplies (59 per cent) and air and sea freight (53 per cent).
Respondents also highlighted that higher energy prices have had a knock-on effect on business operations, leading to higher costs for raw materials, supplies and logistics.
Those in the hospitality, food and beverage, and retail sectors also reported upward pressure on temporary labour costs as the market adjusts to the higher-cost environment.
“Taken together, these pressures were squeezing margins, especially amid softer consumer demand,” SNEF said.
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Employers were also asked about what forms of support would be the most useful if energy prices remain elevated over the next 12 months.
The key support measures they identified are defraying business costs through tax relief or financing assistance (83 per cent), energy cost relief and subsidies (77 per cent), and delaying manpower policy changes that would add further cost pressures (55 per cent).
The responses reflect employers’ concerns about the cumulative burden of higher business costs amid an already challenging operating environment, SNEF added.
Employers remain cautious about business outlook, with 39 per cent of respondents indicating a negative outlook for the next six to 12 months.
“Beyond the immediate cost pressures, employers highlighted deeper concerns over growing disruption to global business and trade, noting that supply chains are being redrawn and investment decisions are becoming increasingly cautious,” the federation noted.
“We welcome the support measures already announced by the government, including the higher corporate income tax rebate,” SNEF CEO Hao Shuo said.
“ As the global economic situation remains quite fluid, we hope that the government will consider the prevailing economic conditions when implementing the earlier announced foreign manpower policy changes,” he added.
Mr Hao also advocated for the introduction of a tiered level of support under the enhanced Progressive Wage Credit Scheme to help employers who are raising wages for their lower-wage workers.
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The poll, conducted from Apr 10 to 16, drew responses from 210 companies across the manufacturing, services and construction sectors, SNEF said in a press release on Monday (Apr 20).
Employers holding off on implementing workforce or workplace changes suggest that most are exploring operational adjustments before resorting to measures that directly affect their employees, the federation said.
For those companies that have implemented changes, about two-thirds indicated they have frozen hiring or delayed expansion plans, while a quarter of them have reduced bonuses, allowance or benefits.
Other measures taken to address the rising costs include reduction of work hours, overtime or shifts, redeployment of staff or cross-training and headcount reduction through natural attrition.
“These are largely calibrated responses aimed at managing costs while preserving jobs,” SNEF said.
Across the board, nearly all respondents (96 per cent) reported higher operating costs amid rising energy prices, while 53 per cent also reported concerns over rising manpower cost pressures.
Among those who reported higher operating costs, around two-thirds face moderate to significant cost increases exceeding 10 per cent.
The most affected operating cost components have been utilities and fuel, with both affecting 70 per cent of companies. These were followed by materials and supplies (59 per cent) and air and sea freight (53 per cent).
Respondents also highlighted that higher energy prices have had a knock-on effect on business operations, leading to higher costs for raw materials, supplies and logistics.
Those in the hospitality, food and beverage, and retail sectors also reported upward pressure on temporary labour costs as the market adjusts to the higher-cost environment.
“Taken together, these pressures were squeezing margins, especially amid softer consumer demand,” SNEF said.
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Show More Show Less
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EMPLOYERS CALL FOR TARGETED SUPPORT
Employers were also asked about what forms of support would be the most useful if energy prices remain elevated over the next 12 months.
The key support measures they identified are defraying business costs through tax relief or financing assistance (83 per cent), energy cost relief and subsidies (77 per cent), and delaying manpower policy changes that would add further cost pressures (55 per cent).
The responses reflect employers’ concerns about the cumulative burden of higher business costs amid an already challenging operating environment, SNEF added.
Employers remain cautious about business outlook, with 39 per cent of respondents indicating a negative outlook for the next six to 12 months.
“Beyond the immediate cost pressures, employers highlighted deeper concerns over growing disruption to global business and trade, noting that supply chains are being redrawn and investment decisions are becoming increasingly cautious,” the federation noted.
“We welcome the support measures already announced by the government, including the higher corporate income tax rebate,” SNEF CEO Hao Shuo said.
“ As the global economic situation remains quite fluid, we hope that the government will consider the prevailing economic conditions when implementing the earlier announced foreign manpower policy changes,” he added.
Mr Hao also advocated for the introduction of a tiered level of support under the enhanced Progressive Wage Credit Scheme to help employers who are raising wages for their lower-wage workers.
Continue reading...