Comments on Increase of Labor Tax in Singapore's 2017 Tax Bill

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News Source: ???? Release Date: 2017-2-26

Singapore's Website www.yan.sg initiated multiple enterviews with construction employers for their viewpoint of increase of labor tax proposed in Singapore's 2017 Tax Bill. Following is the comment from Mr. Deng Jiaqiang, President of Jordans Elevator (S) PTE LTD, which is quite constructive to healthy and sustainable development and growth of local construction industry. His comment is published by the website as follows:

Mr. Deng Jiaqiang is president of Jordans Elevator (S) Ptd Ltd, a company specializing in installation of elevators and escalators and a member enterprise of Singapore Chinese Chamber of Commerce and Industry, which is also one of local trustworthy lift contractors regarded as paradigm for installation quality and brand in lift industry.

To certain extent, Singapore’s construction industry enjoys certain regional advantage in terms of construction technology and work environment. Even though the labor tax of this industry is far higher than other industries, it is still attractive to workers of neighboring countries at present, especially those from India and Bangladesh. The local government has virtually demonstrates high flexibility and practicality with regard to relevant policy-making.

Confronting severe economic conditions, SMEs of construction industry should be more innovative in respect of HRM and segmental subcontracting of single project to prevent worker idling and useless overtime so as to enhance so-called productivity. Government should also fully take tax contribution of these enterprises and local employment rate into account when making relevant concessional policy to stimulate long-term development of these SMEs.

By the end of 2016, economic statistics from MOM suggests that construction industry shrank by 2.8% in the 4thquarter, succeeding a dropdown of 0.2% in the 3rdquarter, even worse than the previous, making construction industry an under-performed sector resulting from decreased construction activities in private sector. The increasing poll tax of construction industry certainly aggravates the harsh circumstance, making many enterprises overburdened and their profit margin narrowed continually. Conspicuous slowdown of whole construction industry has immediate impact on building of urban infrastructure.

SMEs also face very harsh condition for its development. Working in construction sector is never considered by locals as the first choice for employment for the reason that it means massive physical exhaustion, lengthy working hours and messy and dirty working environment. Without substantial influx of foreign labors, many projects can’t be carried out at a normal pace, so it’s not the optimal option to restrict number of foreign workers by continual increment of labor tax. Local government, rather than intensifying restrictions on employment of foreign workers, should implement rational long-term policy according to the real condition of local market to motivate locals to engage in construction sector. The newly released policy may conciliate participants in construction industry, but it also neglects the dilemma they are facing. The regulating department should deliberate how to strike a balance with regard to interest of different parties to make construction industry grow in a healthy and sustainable ecological circumstance.

original link: http://www.yan.sg/jianzhuyelaimbamenzde/