The Singapore Chinese Chamber of Commerce and Industry (SCCCI) has outlined its key recommendations for Budget 2025, urging the government to focus on reducing business costs and supporting smaller firms in their sustainability efforts.
In a survey conducted earlier this year, the SCCCI found that rising costs and challenges in adopting sustainable practices were among the top concerns for businesses, particularly small and medium-sized enterprises (SMEs). The survey, conducted between June and August, involved 651 senior-level respondents from various industries, with 75.6% projecting an increase in expenses and 57% anticipating lower profits in the coming year.
SCCCI President Kho Choon Keng stated, “We call for measures to ease business costs, improve workforce productivity, and accelerate the adoption of green capabilities. Our recommendations are designed to sharpen the competitive edge of Singapore companies while addressing near-term challenges.”
Sustainability Support for SMEs
The chamber highlighted the financial strain smaller firms face when adopting sustainability initiatives. Over half of the survey respondents (53.1%) cited high costs as a significant barrier to embracing green practices.
To address this, the SCCCI proposed introducing an Enterprise Sustainability Programme-Lite (ESP-Lite) scheme. This initiative would streamline the application process for government funding, allowing SMEs to produce carbon or emission reports and adopt solutions to reduce their carbon footprint.
“The ESP-Lite scheme will make available to SMEs a simplified application process to benefit from government funding support as they embark on their first steps to embrace sustainability practices,” the SCCCI noted.
Manpower and Workforce Recommendations
Manpower shortages and rising labour costs remain critical issues for businesses, particularly in industries such as logistics, manufacturing, food and beverage, and retail. The SCCCI has called for a balanced approach to managing local and foreign manpower, noting that foreign workers complement local talent in filling hard-to-fill roles.
The chamber suggested broadening the source countries for foreign workers and reviewing work permit regulations to allow cross-deployment within the same corporate group. These measures, it argued, would help businesses optimise their workforce and address productivity challenges.
The SCCCI also recommended enhanced government support for trade associations and chambers to drive internationalisation efforts and provide industry-relevant training. It proposed extending SkillsFuture Singapore’s financial support to programmes requiring specialised expertise to help businesses build a skilled workforce.
Incentives for Growth Amid Challenges
To support SMEs in navigating a challenging economic environment, the SCCCI proposed incentives to facilitate mergers, acquisitions, and consolidations. Suggested measures include wage support for key employees in critical roles to encourage continued employment and mitigate job losses during transitional periods.
As Singapore prepares for Budget 2025, the SCCCI’s recommendations reflect the pressing needs of the business community and the importance of maintaining competitiveness while promoting sustainability in an evolving global landscape.
