Singapore cannot afford to close borders completely to foreign workers: SBF

Singapore cannot afford to close its borders completely to foreign workers, said the Singapore Business Federation (SBF) on Monday.

The apex business chamber also said it welcomes the increase in foreign worker levy rebates for the construction, marine shipyard and process sectors announced on Saturday.

On the closing of borders, SBF chief executive officer Lam Yi Young said businesses fully understand and support the need for measures to lower the risk of importing Covid-19 cases.

“However, we also cannot afford to close our borders completely and deny entry to all foreigners,” he said.

He noted there must be a risk management framework in place for some foreigners to be able to come into Singapore, with the appropriate testing and quarantine regimes.

SBF’s statement comes after the government announced last Friday that it is reducing entry approvals for work pass holders entering Singapore in the coming weeks.

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SBF has also asked for the new restrictions on entry approvals to be relaxed as soon as the Covid-19 situation allows. 

In the interim, it also hopes that the list of lower-risk regions can be expanded to allow for more worker sources. Lower-risk countries or regions identified as at May 7 include Australia, Brunei, China, New Zealand, Taiwan, Hong Kong and Macau.

“We understand that the Covid-19 situation remains very fluid and can change from time to time. The regions of interest would be those that Singapore has strong business and people links with, such as South-east Asia, North-east Asia and Europe,” said an SBF spokesperson in a statement to BT.

“We hope that countries in these regions can be included in the list of lower risk countries/regions as and when their Covid-19 situation allows.”

The chamber also reasoned that insufficient manpower may affect Singapore in areas other than delays in construction projects which has hit both the private and public housing sectors.

Some top sectors with unfilled manpower demand include food and beverage, healthcare, electronics manufacturing, retail, and logistics and transportation, SBF noted, adding it expects a “further squeeze” for these businesses with the latest reductions in entry approvals for work pass holders from higher-risk countries.

Essential services such as waste management, healthcare and transport will be hit in the immediate term if they are not able to get the workers needed. 

In the long term, there may also be “consequential impact” on job creation and job opportunities for Singaporeans, SBF said.

“Insufficient manpower will also affect investors’ confidence in Singapore and Singapore’s competitiveness and attractiveness as a business destination. Should investors decide to exit Singapore as a result, this will mean job losses for Singaporeans,” SBF added.

Last Saturday, the Ministry of Manpower said that from May to December this year, the foreign worker levy rebate for each work permit holder in the construction, marine shipyard and process sectors will rise to S$250 from S$90 per month. About 15,000 firms will stand to benefit from this increase.

“This will provide much needed relief to businesses in these sectors that have been impacted by the tighter border restrictions and stricter safe management measures,” SBF said in response.

Although those from the construction, marine shipyard and process sectors, as well as those from lower-risk regions will largely not be affected by the reduction in entry approvals for work pass holders, the tightened measures will still have significant impact on business, SBF said.