SINGAPORE: Like many in the food and beverage sector, Foreword Coffee has been feeling the heat from escalating company costs, especially for labor.
Co-founder Lim Wei Jie is relieved that some pleasure is coming with the expansion of the Enabling Employment Credit. Prime Minister Lawrence Wong stated in his Budget 2025 speech on Tuesday ( 18 February ) that the program would be extended until the end of 2028 ).
The scheme provides wage support of up to 20 per cent for workers with disabilities earning below S$ 4, 000 ( US$ 2, 980 ) a month, capped at S$ 400 for each employee.
The pay balances, disbursed on a half-yearly base, have been good for the social organization, which now has 21 workers with disabilities or special needs.
According to Mr. Lim, who founded Foreword Coffee in 2017 to combat social stigma and empower marginalized groups,” Extending the system may continue to support businesses that hire comprehensively and hopefully, encourage more to do so.”
Improvements to the Progressive Wage Credit Scheme, which co-funds available wage rises for lower-wage employees as they upskill and increase job performance, provide additional comfort.
The state will boost its co-funding levels to 40 per cent this year, up from 30 per share. Next time, this will be 20 per share, away from 15 per cent.
With the limited amount of training classes for workers with disabilities, Mr. Lim predicted that Foreword Coffee will be able to pay its employees more, despite the fact that it may not be easy to increase productivity.
” It’s not as easy as bringing in new systems, but whether our employees are able to react to them”, he said. There are very few courses we can send them to right now, but it ends up with a lot of domestic coaching on our own.
On Tuesday, businesses made announcements that included measures to help businesses with rising costs as well as long-term initiatives that aim to promote productivity growth and industrial transformations.
CNA spoke to a number of businesses and business organizations, who generally welcomed these methods, but they also raised fears about how the consequences might be limited in some circumstances.
CORPORATE INCOME TAX Return
A 50 % corporate income tax return may be provided to businesses for another year, according to the announcement. Even if they are not successful, available businesses will also be awarded a S$ 2, 000 cash grant, as long as they are active and employ at least one regional worker by 2024.  ,
A company may receive a maximum of S$ 40, 000 if the full benefit is combined with the tax discount and the grant.
While the measures will help, the impact will vary across businesses, said Mr Ang Yuit, president of the Association of Small and Medium Enterprises ( ASME).
The tax return and funds offer will usually benefit successful businesses, he said. For those that are costly, the importance of the money grant, if they are available, will depend on the number of employees.
” If they are a one-man display, the cash award will be a huge help in terms of price defrayment. But if I have more team, a S$ 2, 000 offer isn’t going to support me much in the overall scheme of things”, he said.
” Unfortunately, the last group of companies is the one that needs the most financial aid”.
Mr Ang noted there could have been” a bit more granularity” in how the taxes return and funds offer are administered.
” I can get more money aid but with a cap on the top end if I am not making money and I have three staff members and more.” I believe this will help the businesses that are attempting to keep afloat and are most impacted by rising fees,” he said.