Short-term cost spike as foreign workers switch to employers starved of labour

Singapore

FOREIGN workers in several industries are enjoying greater bargaining power due to a supply crunch caused by the Covid-19 pandemic, and employers said they are facing higher labour costs as new schemes allow those on work permits to move more easily from one employer to another. But industry players do not expect the situation to have a significant long-term impact on foreign worker salaries.

Since The Business Times (BT) reported early in December that construction firms are struggling with manpower costs due to a slowdown in incoming labour supply as well as new rules facilitating transfers of workers among companies, firms in other industries have voiced similar frustrations.