What the CFE report means for SMEs

THE Committee on the Future Economy's (CFE) report, released on Feb 9, provides big-picture recommendations for small and medium enterprises (SMEs). SMEs are a key plank of the economy, accounting for around half of our economic output, and employing two-thirds of the workforce. How can they operationalise these recommendations on the ground through working with trade associations and chambers (TACs), and industry and economic agencies?

First, the report recommends a stronger link between the acquisition and utilisation of skills by getting employers more involved in developing workers, and introducing more work-learn programmes. If the institutes of higher learning have a better understanding of industry needs, they can design their courses accordingly and reduce the mismatch between demand and supply of skillsets. In addition, given the accelerated nature of changes in job scope due to more connectivity and automation, industry players, training providers and governmental agencies should collaborate and cross-recognise skills and knowledge acquired in different sectors.

This would reduce the need to reskill workers if they had already acquired the relevant skillsets as they seek employment in a different sector and enable companies to tap a ready pool of talent to seize current business opportunities.