PN
13-02-13, 15:39
Review curbs on foreign labour: Restaurant body
http://www.todayonline.com/singapore/review-curbs-foreign-labour-restaurant-body
SINGAPORE — Consumers may face higher food prices and businesses may have to shut down or move out of Singapore if the “severe labour shortage” in the food and beverage (F&B) sector continues, the Restaurant Association of Singapore (RAS) warned yesterday.
Urging the Government to reassess curbs on the inflow of foreign workers, the association — which has over 300 members who account for more than 1,300 restaurants — said in a statement that if nothing is done, Singapore may also lose its reputation as a global city with a vibrant F&B sector.
The RAS said: “Businesses may be forced to shut down or move their operations to other countries, a situation which will deprive the Singapore Government of tax income; consumers can expect food prices to increase due to the high operating costs caused by artificial wage inflation, high-cost productivity drive and high rentals.”
As a result of the manpower shortage, the expected increase in food prices will also come “without a concomitant increase” in quality and service standards.
“In fact, quality and service may decline,” the association added.
It reiterated that the Government “cannot benefit if businesses are unable to sustain themselves, as this will have a chain reaction”.
The association was responding to the Population White Paper, which was debated in Parliament last week. The paper charted the road map for Singapore’s future policies on population and immigration.
“Policies need to be realistic and relevant for the Government as well as for F&B/restaurant business operators who need to secure manpower and contain costs in order to sustain their businesses,” it said.
The RAS added: “In general, a larger population can have a positive impact on the economy and the Government, which derives its revenue primarily from various forms of taxation ... But for business to be able to pay taxes, they must be profitable.”
It also called for a review of foreign worker levies, pointing out that the sector is facing a “dire situation” as many Singaporeans tend to shun F&B jobs, “leaving the industry with little choice but to rely on foreign workers”.
The association suggested several measures for the Government to consider. Among them are adjusting either the foreign worker quota or the levy quantum, not both, so as to avoid “causing further detriment to F&B/restaurant businesses”, and channelling the levy collected to help businesses enhance their productivity.
As well, it suggested that the Government consider alternative sources of labour such as by allowing foreign students studying in Singapore to work on a part-time basis.
http://www.todayonline.com/singapore/review-curbs-foreign-labour-restaurant-body
SINGAPORE — Consumers may face higher food prices and businesses may have to shut down or move out of Singapore if the “severe labour shortage” in the food and beverage (F&B) sector continues, the Restaurant Association of Singapore (RAS) warned yesterday.
Urging the Government to reassess curbs on the inflow of foreign workers, the association — which has over 300 members who account for more than 1,300 restaurants — said in a statement that if nothing is done, Singapore may also lose its reputation as a global city with a vibrant F&B sector.
The RAS said: “Businesses may be forced to shut down or move their operations to other countries, a situation which will deprive the Singapore Government of tax income; consumers can expect food prices to increase due to the high operating costs caused by artificial wage inflation, high-cost productivity drive and high rentals.”
As a result of the manpower shortage, the expected increase in food prices will also come “without a concomitant increase” in quality and service standards.
“In fact, quality and service may decline,” the association added.
It reiterated that the Government “cannot benefit if businesses are unable to sustain themselves, as this will have a chain reaction”.
The association was responding to the Population White Paper, which was debated in Parliament last week. The paper charted the road map for Singapore’s future policies on population and immigration.
“Policies need to be realistic and relevant for the Government as well as for F&B/restaurant business operators who need to secure manpower and contain costs in order to sustain their businesses,” it said.
The RAS added: “In general, a larger population can have a positive impact on the economy and the Government, which derives its revenue primarily from various forms of taxation ... But for business to be able to pay taxes, they must be profitable.”
It also called for a review of foreign worker levies, pointing out that the sector is facing a “dire situation” as many Singaporeans tend to shun F&B jobs, “leaving the industry with little choice but to rely on foreign workers”.
The association suggested several measures for the Government to consider. Among them are adjusting either the foreign worker quota or the levy quantum, not both, so as to avoid “causing further detriment to F&B/restaurant businesses”, and channelling the levy collected to help businesses enhance their productivity.
As well, it suggested that the Government consider alternative sources of labour such as by allowing foreign students studying in Singapore to work on a part-time basis.