Service firms to get help, subsidies to transform, Latest Singapore News - The New Paper

Service firms to get help, subsidies to transform

This article is more than 12 months old

Scheme allows firms to boost productivity, redesign jobs with consultant's help

Service sector companies can now get more help to transform their businesses as they adapt to changing manpower needs and consumer demands.

They will be able to tap government subsidies and professional guidance under the new Service Industry Transformation Programme (SITP) announced by Manpower Minister Josephine Teo yesterday.

Companies can implement up to two transformation projects with the help of a certified productivity consultant from the Singapore Productivity Centre (SGPC), which, together with Workforce Singapore, aims to support close to 180 companies and 1,100 workers in the service industry over two years through the new scheme.

In her speech, Mrs Teo said that amid present economic uncertainties, some employers might wonder if it is better to think about survival and current jobs than about transformation and jobs of the future.

But Singapore is fundamentally labour-constrained so companies need to become more manpower-lean over the medium and long term, she told about 200 business leaders at a service industry conference.

"We can take advantage of this time to put in new systems and processes to better manage costs in the longer term, to better our product and service offerings to capture market share.

"By doing so, we end up also redesigning jobs to make better use of our manpower resources and also improve job satisfaction for our workers," she said.

The SITP aims to help businesses improve the way they serve customers, streamline and digitalise operations and redesign jobs to attract workers.


Under the scheme, companies can send up to two representatives to attend a two-day workshop on techniques such as service design, job redesign and customer journey mapping.

A certified productivity consultant from SGPC will also conduct 61/2 days of training and help companies identify areas for improvement and growth, and guide them through implementing projects over a four-month period.

Small and medium-sized enterprises will need to pay $1,800 or $3,398 before tax, depending on whether they work on one or two projects. This is after a 90 per cent government subsidy.

Larger companies can receive a 70 per cent subsidy and will pay $4,794 or $10,194 before tax.

Companies interested to sign up can contact SGPC at

Six companies have already come on board since the pilot launch of the scheme last month, said Mrs Teo.

She said the Government hopes more will take action to transform so the service sector becomes much more competitive.

This will also help companies manage upcoming reductions to the Dependency Ratio Ceiling for the service sector, she said.

The proportion of foreign workers a company can employ will be lowered from 40 per cent to 38 per cent on Jan 1 next year, and to 35 per cent on Jan 1, 2021.