SNEF’s Budget 2026 Wish List: Flexible Foreign Manpower Policies and Enhanced AI Support for Businesses

The Singapore National Employers Federation (SNEF) has submitted its Budget 2026 recommendations to the Government, urging measures to help companies navigate ongoing manpower shortages, rising costs, and the challenges of digital transformation. These proposals are designed to support employers in an economic environment that remains uneven across sectors, despite Singapore’s GDP growth forecast of around 4 per cent for 2025.

At the centre of SNEF’s wish list are greater flexibility in foreign manpower policies and stronger support for digitalisation and artificial intelligence (AI) adoption, particularly for small and medium-sized enterprises (SMEs).

Key Recommendations

1. Flexible Foreign Manpower Policies

SNEF proposes easing foreign manpower rules to help employers fill critical roles amid tightening restrictions, rising qualifying salaries, and local labour shortages. This includes:

  • Moderating qualifying salary increases for S Pass and Employment Pass holders in sectors with acute manpower gaps.
  • These changes are aimed at balancing business needs with support for local workers and progressive workplace practices.
  • Allowing temporary quota adjustments and cross-deployment arrangements for firms undertaking restructuring or productivity projects.
  • Expanding the pool of approved source countries for Work Permit holders.

2. Enhanced AI and Digital Adoption Support

Recognising that many companies are uncertain about how to embark on their digital transformation journeys, SNEF calls for:

  • Wider access to affordable, plug-and-play AI tools that are easy to deploy.
  • Expanded subsidies and grants covering AI training, reskilling, and change management.
  • Development of structured AI training and certification pathways to build workforce capabilities. This support is intended to help businesses adopt AI more effectively and responsibly.

3. Senior Employment and Workforce Costs

To sustain employment for older workers in Singapore’s ageing workforce, the federation has recommended extending schemes such as the Senior Employment Credit and the CPF Transition Offset beyond their current end dates. It also suggests stronger grants for age-friendly workplace redesign and career planning support.

4. Managing Business Costs

With rising wages, CPF contributions, rent, and utilities adding pressure on firms—especially SMEs—SNEF advocates continued broad-based cost relief, including targeted support for rental and utility expenses.

5. Workforce Transformation and Leadership Development

The recommendations further encourage extended support for Career Conversion Programmes, leadership training, and upskilling pathways to strengthen workforce adaptability and managerial capabilities.

Sources:
https://www.straitstimes.com/business/more-flexible-foreign-manpower-policies-enhanced-ai-adoption-on-snefs-budget-2026-wish-list
https://snef.org.sg/news/snefs-budget-2026-recommendations-empowering-employers-expanding-capabilities-building-a-future-ready-workforce