Foreign Worker Levy

A WORRYING outcome of increasing the foreign worker levy was raised at a dialogue with Manpower Minister Gan Kim Yong yesterday.

Such a move would make it tough for some businesses to survive, especially if Singaporeans are unwilling or unable to take up such jobs, said a resident of Nee Soon Central. Her question follows recent recommendations by the Economic Strategies Committee (ESC), which proposed increasing the levy gradually.

Mr Gan explained that the move should be viewed as a way to encourage companies to make more productive use of their manpower, so that they would need fewer workers to do the same job.

'The purpose of it is to encourage companies to go for productivity improvements,' he said.

For example, he said, a company might need 10 workers now. But this could be shaved down to eight workers if it can do more with the same or fewer resources.

'The saving of two workers might be more than enough to offset the higher foreign worker levy,' he said.

Strait times Feb 8 1010