Singapore urges F&B firms to adopt tech and new hiring rules amid labour squeeze

Senior Minister of State for Trade and Industry Low Yen Ling addressed concerns about the food-and-drink sector’s mounting cost pressures and dwindling labour pool in Parliament. Citing Singapore’s rapidly ageing population, she argued that operators must improve productivity by redesigning workflows, centralising food preparation and deploying technologies like AI-driven reservation systems, noting a beach-side restaurant’s 2 % weekend revenue rise after implementation.

To ease staffing gaps, the government expanded the Non-Traditional Sources Occupation List in September, allowing firms to recruit Work Permit holders from new source countries for specific roles. She also highlighted financial support schemes, including the Enterprise Development Grant and Productivity Solutions Grant, to fund such upgrades. While some MPs called for rent caps, Low cautioned that price controls could create market distortions and said the Fair Tenancy Industry Committee’s code will be used to promote fair leasing practices. Overall, she stressed that embracing tech and flexible hiring is essential for the sector’s resilience.