S'pore Has to Secure Long-Term Growth While Tackling Labour Force Issues: Panel

More than eight in 10 business leaders said after Budget 2025 that they were satisfied with the help provided, according to the Singapore Business Federation (SBF).

- Sue-Ann Tan

But in the long term, they would like even more assistance with issues like manpower costs, said Mr Musa Fazal, SBF's chief policy officer, sharing the feedback from the ground.

One area in particular where companies hoped to get more support was regarding foreign workers, he said.

"Manpower issues continue to be a key concern for businesses - manpower costs, manpower availability. Many businesses still rely on foreign manpower to augment their local workforce.

"There's a lot in the Budget about how we can upskill and upgrade the local workforce, but on the foreign manpower side... could (S Pass levies and qualifying salaries) be deferred in order to relieve some of the cost pressures on businesses?" Mr Musa said.

He was speaking at a post-Budget panel organised by The Straits Times as part of The Usual Place podcast. Minister in the Prime Minister's Office Indranee Rajah and labour economist Walter Theseira from the Singapore University of Social Sciences were also on the panel.

Looking ahead, Singapore has to secure long-term economic growth through increasing productivity while dealing with labour force issues, the panellists said.

Mr Musa said that businesses welcomed the measures announced in 2025, especially the corporate income tax rebate, which would help to address some of the immediate short-term cost pressures that they are facing.

Prime Minister Lawrence Wong introduced a 50 per cent corporate income tax rebate in the year of assessment 2025.