The actual implementation of the incentives measures from the new Budget 2013 might not be a smooth sailing process for the ICT companies in Singapore.
The Singapore infocomm Technology Federation (SiTF) said that the existing manpower challenges faced by ICT companies would continue despite the assistance provided, as restructuring of the business will take time and a mindset change.
"ICT is the key pillar for productivity and innovation, however, the ICT industry does not have enough manpower or the right people to assist all industries to improve their productivity," said Eddie Chau, chairman, SiTF.
According to SiTF, the newly unveiled three-year transition support package would provide industry some time to adjust their manpower requirements and to improve productivity. However, for certain support, companies do need to think beyond the three years to ensure sustainability of cost.
"The Budget 2013 provides a clear timeline that companies need to recalibrate and restructure their business. Companies would need to either move labour-intensive work outside Singapore or tap on technology to lessen the dependency on labour," said Chau.
Meanwhile, the Budget's Collaborative Industry Projects, an initiative that puts private firms and research agencies together to come up with industry-specific solutions, was lauded by Mildred Tan, managing director, Ernst & Young Advisory.
"Public and private sector teaming and collaboration, and linking SMEs to public research institutions and technology, will help companies to collaborate and co-innovate. By taking a sectoral approach, this will enable industrial transformation that will far outweigh the benefits of productivity gains of any one company," said Tan.
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