Business costs main concern for S'pore firms

Business costs main concern for S'pore firms
By S Ramesh | Posted: 03 January 2011 1430 hrs

SINGAPORE: Business costs have become a primary concern for Singapore firms.

They have outstripped other concerns such as access to financing options and the lowering of foreign worker levies and quotas among members of the Singapore Chinese chamber of Commerce and Industry (SCCCI).

Nearly 66 per cent of members called for a reduction of business costs.

In its Budget Wish List, the chamber is calling for a reduction in the cost of utilities, fees such as licensing charges and online application and information charges levied by government agencies.

Taken altogether, SCCCI said these government charges add to the financial burden of SMEs and start-up companies.

Other items on their wish list include: increasing the level of government subsidies for customised training courses to meet the specific requirements of companies as Singapore transforms into a knowledge-based economy.

They are also calling for more incentives to be given to SMEs to venture overseas jointly as a group or consortium with their industry counterparts, and pool their resources to clinch more deals.

The Chamber also wants the corporate income tax lowered to 16.5 per cent to be comparable to other regional economies like Hong Kong. The headline corporate tax rate for Singapore is 17 per cent.

It is also hoping for a reduction of property tax and provision of more rental rebates.

Finally, the Chamber hopes for a reduction in foreign worker levy for foreign workers with specialised skills and professional qualifications. It said many SMEs are hit by the labour crunch and a shortage of skilled workers in specific industries.

Furthermore, the benefits of re-training and re-skilling local workers will take time to materialise.

Meanwhile a survey of business outlook and sentiments for 2011 amongst the Chambers members indicate that despite the tampering of growth expectations by the government for 2011, businesses are even more optimistic about their prospects in the New Year.

Nearly 66 per cent of firms have forecast increased revenue compared to the 2010 survey of SMEs between June and August where 45 per cent of respondents indicated higher revenue.

Only eight per cent of respondents are expected to reduce hiring.

-CNA/ac

- wong chee tat :)