SICCI calls for foreign worker quota review for sectors with ‘chronic’ manpower crunch in Budget 2026 wish list
The Singapore Indian Chamber of Commerce and Industry makes six key recommendations in its proposal ahead of Budget 2026
[SINGAPORE] Sectors facing “chronic” manpower shortages should have their foreign worker limits reviewed, under measures to address rising business costs, the Singapore Indian Chamber of Commerce and Industry (SICCI) said in its key recommendations for Budget 2026.
The chamber noted that businesses are facing increasing S Pass quotas, levies and manpower shortages.
To address rising business costs and manpower constraints, it also suggested introducing flexible or seasonal work-pass schemes during festive peaks, and “differentiating” manpower rules for micro-enterprises and heritage businesses.
There were five other key recommendations that SICCI laid out in its Budget proposal to the Ministry of Finance.
The recommendations were crystallised from a roundtable discussion with key leaders of Indian business associations in Singapore, and a separate online survey of clients from its SME Centre, representing the views of more than 600 businesses.
The SICCI noted that small and medium-sized enterprises (SMEs), in particular, were continuing to face “persistent cost pressures, manpower constraints, skills-transition challenges and industry disruption” amid shifts in consumer behaviour and regional competition.
SICCI chairman Neil Parekh said: “Budget 2026 presents a timely opportunity to strengthen Singapore’s SME backbone and bolster business transformation.”
Another recommendation called for more support for rental operating pressures. It proposed property tax rebates, or a 1 to 2 per cent plough-back to heritage precinct associations such as the Little India Shopkeepers & Heritage Association.
The third recommendation covered SkillsFuture and workforce transition. SICCI suggested improving skills uptake by redirecting training funds towards “simplified SME survival or wage-support schemes”.
It also recommended increasing SkillsFuture credits for mid-career professionals and retirees, and expanding grants for employers conducting in-house training. The Progressive Wage Credit Scheme cap should also be raised to S$5,000 from S$3,000, it suggested.
Under its fourth recommendation to enhance business competition, SICCI suggested “more targeted” CDC voucher disbursement, greater support for event-hosting costs in heritage precincts, and micro-loans to ease cash-flow pressures. The government should also review rising employee healthcare insurance premiums, it said.
Its fifth recommendation covered accelerating the drive for sustainability. To help SMEs make the transition, SICCI proposed incentives and carbon rebates and funding for community-driven initiatives.
The last set of recommendations were related to startups that have highlighted persistent early-stage funding gaps. SICCI called for micro-grant or convertible-note schemes for them, and incentives to attract private-sector angel investors.
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