Proposals aim to ease rising costs and support workforce development.
The Singapore National Employers Federation (SNEF) has outlined its Budget 2025 recommendations, focusing on measures to alleviate financial pressures on businesses while addressing evolving workforce needs. SNEF President Tan Hee Teck emphasized that these steps are critical for sustaining productivity and wage growth amidst rising costs.
Key Proposals:
Financial Relief Measures:
Corporate income tax rebates.
Rental reductions.
Enhancements to the Enterprise Financing Scheme.
“These measures will provide businesses the breathing space needed to invest in long-term strategies, ultimately boosting productivity and enabling sustainable wage growth,” said SNEF.
Extending Wage Credit Schemes:
Extend the Progressive Wage Credit Scheme beyond 2026 to support the Progressive Wage Model (PWM) and local qualifying salary (LQS) increases.
Support for Reskilling Efforts:
Continued funding for SkillsFuture Enterprise Credit or similar initiatives.
Higher absentee payroll to offset training-related costs.
Subsidies for AI-related training to encourage AI adoption in sectors facing manpower shortages.
Senior Workforce Support:
Extend the Senior Employment Credit beyond 2025.
Introduce a multi-generational grant to foster cross-generational collaboration, succession planning, and leadership renewal.
Productivity and Long-term Growth:
SNEF acknowledged the government’s efforts to uplift lower-wage workers through the PWM and LQS but highlighted the need for these increments to align with productivity growth for sustainability. The federation also emphasized the transformative potential of AI and the necessity of equipping workers with relevant skills to drive innovation and efficiency.
SNEF’s proposals align with its broader goal of helping businesses adapt to Singapore’s evolving economic landscape while fostering a resilient and inclusive workforce.
