HELP FOR SMES
A number of MPs asked for more support for SMEs, with Mr Derrick Goh (PAP-Nee Soon) saying: “Some local businesses have fed back that Budget 2023 is pro-redistribution and seemingly a shift away from pro-business growth.
“They wonder if this means that they should fend more for themselves and expect less help going forward.”
He added that Budget 2023 is being rated by many as an “A-grade for families and individuals” but SMEs would score the Budget “a B or even a C”.
The MPs asked for help for SMEs to deal with rising costs and to strengthen their capabilities to hire and train workers, and to step up their game in Environment, Social and Governance or ESG.
“I also urge our government agencies and government-linked companies to support our SMEs by providing more business to them as to benefit almost 70 per cent of the Singaporean workforce indirectly,” said Mr Don Wee (PAP-Chua Chu Kang).
Mr Gerald Giam (WP-Aljunied) noted that higher rental costs may affect the competitiveness of SMEs, which may struggle to afford rent. He urged the government to look for ways to moderate industrial and commercial rental costs for SMEs to benefit a broader base of businesses.
Several MPs also spoke out for different groups of workers from seniors, lower and middle-income workers, to platform workers and freelancers.
Responding to a call by NCMP Leong Mun Wai (PSP) on Wednesday to raise the Local Qualifying Salary (LQS) from S$1,400 to S$1,800, Minister of State in the Prime Minister’s Office Desmond Tan said until COVID-19, the LQS was increased S$100 each year from 2017.
He added that Singapore needs a “sustainable and systematic” mechanism to set and review the floor wage.
Mr Mohd Fahmi Aliman (PAP-Pasir Ris-Punggol) pointed out that the current LQS of S$1,400 is much lower than the wage level of the lowest 20 per cent of wage earners, which was about S$2,800 in 2022.
“I would like to call on the Government to annually review the LQS to ensure that wages keep pace with wage convergence targets for our lower-wage workers,” he said.