Lack of skilled labour considered as number one constraint to growth

The recently announced changes to foreign workers levy for the lower skilled worker will add up to business costs.

According to Grant Thornton's IBR, 41% of Singapore businesses said lack of skilled labour is the number one constraint to growth. This is a 14% point increase from last year's Grant Thornton's International Business Report.

Fast growing economies in the Asia Pacific region (excluding) Japan are faced with skills shortage dilemma.

Aw Eng Hai, partner of Foo Kon Tan Grant Thornton LLP said, “A clamour for skilled people will cause wages to rise and add onto business costs; invariably narrowing competitive edge. Not forgetting the recently announced changes to CPF and foreign workers levy for the lower skilled worker will all add up to business costs.”

Other factors cited by Singapore businesses being growth dampeners include shortage of orders/reduced demand (31%), shortage of working capital (27%), cost of finance (22%), ICT infrastructure (21%), shortage of long term finance (19%),regulations/red tape (16%) and transport infrastructure (13%).