Budget 2026: Restaurant association seeks help over labour cost and excessive rent increases

The Restaurant Association of Singapore (RAS) called on the Ministry of Finance to help the food and beverage (F&B) industry with further labour cost subsidies, as well as for the authorities to implement policies to control excessive rent increases.

- Sharon Salim Business Correspondent

Specifically, it asked for Progressive Wage Credit Scheme (PWCS) subsidies to be increased to 75 per cent for 2026 to 2028, from 50 per cent now. Its other Budget 2026 recommendations include the removal of foreign worker levies, a shorter wait for payouts of government subsidies under PWCS and more funding to support employees' parental leave.

As the sector continues to grapple with a “perfect storm of rising costs, labour shortages and shifting consumer habits”, RAS said on Jan 19 in a press statement that it seeks the Government's intervention to enhance cost predictability and stimulate domestic demand within the F&B sector.

Citing the sector’s contraction in 2024 and record-high business closures, it added that the long-term viability of F&B businesses, particularly small and medium-sized enterprises (SMEs), is threatened.

Under the PWCS, the Government co-funds the wage increases at each Progressive Wage Model (PWM) rung from 2022 to 2026 to help soften the impact on companies.

During Budget 2024, Finance Minister and then Deputy Prime Minister Lawrence Wong announced that the co-funding levels would be increased for 2024 from a maximum of 30 per cent to 50 per cent.