Saturday, 23 August, 2014

Published February 21, 2014
SG Budget: SNEF hopes for productivity 'resurgence' with new measures

The unit labour cost of Singapore's economy had increased by 5.3 per cent and 3.1 per cent in 2012 and 2013 respectively, it said - PHOTO: SPH

THE Singapore National Employers Federation (SNEF) is optimistic that incentives for companies to invest in raising productivity announced in the Budget on Friday will boost Singapore's productivity drive.

"With these measures, SNEF hopes that the zero productivity growth in 2013 is on the path of a V-shaped resurgence in productivity, and that productivity growth will be in positive territory over the next few years."

SNEF said it is pleased with the government's assurance that it will not raise the employers CPF rate beyond 17 per cent anytime soon.

The one-year Temporary Employment Credit and Special Employment Credit offset of 0.5 percentage points of wages will also help mitigate the overall wage cost increase in the short term.