High energy prices, tight labour market a new state of affairs businesses must adjust to: DPM Wong

BUSINESSES operating in Singapore have to understand that high energy prices and tight labour conditions are likely to constitute a new state of affairs, and they must adjust their operations to cope over the longer term, said Deputy Prime Minister and Finance Minister Lawrence Wong in a press conference on Friday (Oct 14) to announce a S$1.5 billion support package.

Wong was responding to a question on why the package had not included support for businesses. The newly announced package will distribute cash and vouchers to individuals, and is targeted at the lower- and middle-income.

In the Budget and its last support package, Wong said, the government had provided help for businesses, such as the Energy Efficiency Grant.

These measures were meant to help businesses restructure and transform to become more energy and manpower efficient, he added.

“More fundamentally, we have to get businesses in Singapore to understand that a tight labour market and high energy prices, these are likely to be the new state of affairs for them to adjust to,” Wong said. “Restructuring is important for businesses to not only cope with the current situation, but also to sustain their operations in the longer term.”

The government would, however, “continue to study” what other help it can provide for businesses in the coming Budget, with the aim to “enable businesses to restructure and transform operations”.