As a business leader, would you support moves to uplift lower-wage workers even if the measures result in higher costs for your organisation?
Maren Schweizer
CEO
Schweizer World Pte Ltd
Legislative changes raising the minimum wage pose challenges. To remain competitive and thrive in such a new environment, companies must have enough lead time to address the effects by proactively engaging in a thorough analysis of their business operations.
The resulting increases will be challenging for companies to pass on to customers and consumers in the short term, placing strain on profitability. This strain might be exacerbated by the potential increase of input costs as suppliers seek to recoup their additional uplifted wage costs.
Productivity increases will be a must for businesses. In the digital age, offshoring of data-driven business processes is a viable short term option and a downside risk for the community.
Overall we have to consider various scenarios and their impacts on government finances, too.
In any case, minimum wages shall aim to address and eliminate gender gaps.
