UK businesses in Singapore flag mental health, talent recruitment and retention as key concerns

THE confidence level of British businesses in Singapore as a long-term business hub dropped from 83 per cent in the first half of 2021 to 73 per cent, according to the British Chamber of Commerce's (BritCham) latest business sentiment poll.

They pointed to mental health, talent recruitment and retention as key concerns in the poll, which ran from Nov 15, 2021 to Jan 12, 2022, and is supported by Globalization Partners.

"We track recruitment data for each vacancy and there is definitely a reduction in the average number of applicants per vacancy. This reduction is almost entirely explained through the reduction in foreign applicants," said BritCham, a member which is in the education sector.

"The high cost of living in Singapore forces foreign workers to rely on spouses picking up part-time or temporary employment. The removal of the Letter of Consent (LOC)/Dependent's Pass (DP) option has been significant for us and will continue to be so."

DP holders who wish to work in Singapore have had to apply for a relevant work pass since May 2021. They could previously seek employment via a letter of consent.

Separately, employment of foreign work pass holders contracted by 29 per cent, compared with an 18 per cent contraction in the first half of 2021.

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"Members raised concerns with the perceived local talent crunch, combined with an increased reluctance for overseas talent to consider relocating to Singapore due to the earlier LOC rule changes and difficulties securing employment passes," said BritCham on Tuesday (Jan 25).

A total of 62 companies responded to the survey, with over half of the companies having 50 employees or less and over a third employing 50-1,000 people. The remainder employ over 1,000 staff in Singapore.

Seven in 10 of the companies polled reported their total workforce as "stable or increased", with 82 per cent recruiting and 35 per cent anticipating increases in the first half of this year.

Also high on the list of concerns was restrictions on business travel and limitation of entry pass approval processes.

The opening of several Vaccinated Travel Lanes (VTLs), including with the UK, enabled many to reunite with loved ones for the first time in more than 2 years over the holiday period, noted BritCham. However, the risk of Covid transmission, increased travel costs, new variants, protocols, and testing continue to limit the feasibility of regular business travel which is vital to this region, it noted.

"Today's survey results mirror the conversations we are having with members every day. Business leaders are focused on the well-being of their staff, and while grateful for the recent holiday break and with many able to travel to see family, continue to be concerned about the toll of isolated virtual working, limited interactions and increased workloads," said British Chamber of Commerce Singapore executive director David Kelly.

"Recruitment and retention issues are at the forefront of discussions within our industry committees with members being supportive and empathetic of others in similar circumstances," he added.

Meanwhile, Covid-19 continued to impact all businesses within the community, with a combined 63 per cent stating they were "greatly impacted" during H2 2021, a similar proportion to H1.

Sales and bookings rose for 27 per cent of respondents. Cashflow experienced a 3 per cent contraction in the second half of the year, compared to an earlier 11 per cent increase. More companies are putting their investment plans on hold rather than increasing them, resulting in a 6 per cent contraction. Asean remains a priority for over 91 per cent of respondents.