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Singapore companies turning away business
Straits Times - June 18, 2011
Aaron Low, Mark Tay & Ian Poh – Staff shortages in the service sector are so severe that some firms have put expansion on hold and are scaling back their business.
Security firm KH Security has stopped bidding for new projects and is focusing on retaining its existing staff, said senior business development manager Gary Haris. "There are a lot of new building projects but we stopped bidding for them as we just don't have the manpower," he said.
The firm, which supplies security officers to man condominiums and office buildings, is paying current workers a retention bonus every six months to keep them on the job.
"Even this does not guarantee they will stay, Haris said. Security staff get a basic salary of around $1,500 a month.
Cynthia Chua, managing director of Spa Esprit, which run chains like Skinny Pizza and Browhaus, said she has had to turn down prime retail spots as she cannot find employees.
"We get ourselves in line for a good spot but when it's our turn, we find ourselves declining because we can't find staff," she said. "It's been particularly bad these past three months. We send out one ad and maybe we get two or three replies."
The company is also struggling to retain current employees as many are lured by better pay at big restaurants at the integrated resorts. "They say they want a 30 per cent increment because they can get that at other places, like the integrated resorts," Chua said.
The president of the Association of Small and Medium Enterprises, Lawrence Leow, said options are fast running out for many of these manpower-starved firms. While it may be viable for companies serving the domestic market to raise costs and pass that on to customers, it is untenable for exporting firms.
"They will lose their competitiveness if they pass costs to their clients. Their overseas competitors will be relatively cheaper," Leow said. He hoped the Government will consider easing up on foreign worker curbs as the current situation clearly shows that firms are passing up on business opportunities due to a lack of manpower.
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