S Pass quota cut not likely to slow Singapore's manufacturing growth: Analysts

The maximum proportion of foreigners on S Passes in manufacturing firms will be reduced from 20 per cent now to 18 per cent from Jan 1 next year, and 15 per cent from Jan 1, 2023, DPM Heng Swee Keat said in his Budget speech on Feb 16. LIANHE ZAOBAO

SINGAPORE (The Straits Times/ANN): Manufacturing firms are concerned that the coming cuts in the S Pass quota for the sector will raise wage costs and lead to labour shortages.

But analysts expect that the change will not have a damaging effect on the growth of the manufacturing sector, where productivity has generally been improving.