Home World Rising labor shortage costs Covid-19 burdens Singapore businesses Reuters

Rising labor shortage costs Covid-19 burdens Singapore businesses Reuters

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Recently, as Singapore relaxes its epidemic prevention measures, more domestic companies have begun to expand their business scale. However, labor shortages, rising labor costs, and rising raw material and energy prices have added to the burden on businesses.

Zhang Ruijie, the head of a seafood restaurant in Singapore, is doing much better than before after the government lifted restrictions on the number of people in social gatherings in late April, with a significant increase in reservations. But the problem now is that the restaurant is understaffed. Singapore has entered an aging society, and the service industry relies heavily on multinational laborers. However, many employees have left Singapore due to the epidemic, and it is difficult for them to return in a short period of time. As a result, many enterprises have also experienced a “labor shortage”, and labor costs have risen sharply.

Zhang Ruijie, head of a restaurant in Singapore: The labor cost of food production staff has increased by 20%-30%, and it is more difficult to find waiters. The labor cost has increased by 30%-40%, while the cost of cleaners and dishwashers has increased by 10%. times.

In addition to labor costs, restaurant operating costs are also increasing. electricity bill,gasFees and ingredients are rising in price, ranging from 20% to 30% to 50% to 60%.oil priceThe grid has doubled. As a result, the prices of the meals sold in restaurants have to increase accordingly.

Zhang Ruijie, head of a restaurant in Singapore: We will have to gradually increase prices and pass on some of the cost pressure to customers, but we also don’t want to raise prices too high to avoid losing some old customers.

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There are many practitioners who are facing enormous pressure like Zhang Ruijie. Faced with challenges such as soaring costs and manpower shortages, some practitioners have had to shorten their business hours, and some even suspend store business and switch to takeaways and online shopping.

In addition, high rent is also a big pressure for enterprises. For more than two years, the vast majority of Singaporean companies have been working from home. To cut costs, more Singaporean businesses are now opting to work in co-working spaces. These open plan offices are cheap to rent and have flexible leases.

Faced with labor shortages and rising operating costs, Singaporean companies are under heavy pressure. The National Employers’ Federation of Singapore called on the three parties to work together to address the challenges through cooperation.

(Article source: CCTV News Client)

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