Firms warn of layoffs to cope with costs

COMPANIES here may have to lay off workers to cope with cost pressures as they respond to what they say is a Budget that is more focused on the long term than addressing their immediate concerns.

While business leaders whom BT spoke to commended the government for doing more to encourage productivity and innovation, they felt that the absence of direct measures to help firms with cost and cash flow issues meant that they might need to try to do more with less by cutting their headcount.

"I applaud the government's efforts to cater to the needs of SMEs in the Budget. But even though this is a good start, I believe the government can still do more, as SMEs are often faced with pressure margins and rising costs," said Yong Yean Chau, CEO of Parkway Trust Management.