Danger, risk of falling: Construction to drop in turnover expectations

Manpower is going, going, gone.

SMEs in the construction and engineering sectors will experience the hardest hits in the coming months, especially with the latest round of increased foreign workers levies that will constrain firms in their ability to take on new projects.

The SBF-DP SME Index cites that continued manpower constraints faced by SMEs are likely to result in a less robust growth momentum.

According to Chen Yew Nah, director of DP Info, the manpower challenge has to be overcome with a transformational mindset so that SMEs can grow in the future.

She adds that tightening labour constraints continuously dog SMEs with a less than robust expected growth, hampering their capacity to actively grow their top lines amidst expansion opportunities.

“There are several examples of companies, particularly in the Manufacturing and Construction/Engineering sectors, that have invested in technology and automation, as well redesigned their processes to realise improved overall efficiency, quality and productivity,” adds Ho Meng Kit, CEO of Singapore Business Federation.