F&B sector will have to use tech and other means to beat manpower crunch: Low Yen Ling
Singapore’s ageing population will continue to crimp the supply of labour, she adds
Food and beverage businesses in Singapore are facing challenges due to the country's aging population, which is limiting the availability of manpower, according to Senior Minister of State for Trade and Industry Low Yen Ling. Speaking in Parliament, she highlighted that F&B operators need to adapt by redesigning jobs, leveraging technology to boost productivity, and reducing their dependence on manpower.
Responding to a proposal for more support from the Workers’ Party MP Jamus Lim, Low pointed out that F&B operators must compete on pricing while still maintaining profitability after considering ingredient, labor, and rent costs. Singapore's restaurants, she emphasized, are grappling with inflation, rising costs, intense competition, shifting dining habits post-pandemic, and the need to adopt technology and automation.
Despite these challenges, the F&B sector continues to welcome new businesses, with the number of F&B entities growing by 42% between 2015 and 2025. The government is addressing manpower constraints by expanding the Non-Traditional Sources Occupation List to include more F&B roles, allowing businesses to hire foreign Work Permit holders for certain positions.
Low also mentioned government schemes like the Enterprise Development Grant and Productivity Solutions Grant to help businesses invest in productivity improvements and capability development. She showcased how some businesses, like Fico, have used AI to optimize reservations and table utilization, resulting in increased operational efficiency and weekend revenue.
However, Low also addressed the issue of rising rental costs, acknowledging that imposing rental controls could have negative consequences, such as distorting market pricing and reducing incentives for landlords to maintain their properties. Instead, she stressed that the government will continue to monitor the rental landscape and collaborate with industry stakeholders to promote a fair and transparent leasing environment through the Fair Tenancy Industry Committee's Code of Conduct for Leasing of Retail Premises.
Written by urgent.news from The Business Times - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
