How businesses can adapt to the 'drastic' changes imposed by the Singapore Budget 2013

What a budget it is: a multi-pronged approach to deal with the social and economic challenges that Singapore is facing as well as to position the country to deal with realities in the new normal.

Many seasoned business owners exclaimed they were shocked and awed by how sweeping and drastic some of these changes have been and the impact on their businesses.

In particular, they were referring to the impact it has on the employment of foreign workers.

If your business relies heavily on foreign workers, the budget has a bitter pill for you to swallow with the higher levies and cuts in dependency ratios. The government has shown its resolve to reduce foreign worker dependency on our shore.

The old way of doing things might not work anymore, at least not if you wish to continue to base your operations in Singapore. It’s no longer business as usual. The ground has been set for a structural change. This would require a strategic review of your business and how you could change with the new rules of engagement.

So how should local companies respond and adapt?

According to the Change Curve model, there are four stages of change: Status Quo, Disruption, Exploration and Rebuilding. Our typical reaction at each of this stage is: Shock and denial, Anger and fear, Acceptance and finally Commitment.

Currently, we are experiencing stages 1 and 2, which is clearly understandable. Pain typically invokes strong and emotive responses from us. It’s only human.

We got to seize the day and move on quickly to stages 3 and 4 so we can start to explore possibilities and deal with this new world order. In hindsight, this could prove to be an invaluable opportunity to rebuild business models that are more robust, productive and provide gainful employment to more Singaporeans for a better Singapore.

This might be the catalyst for all of us in business to start inverting our thinking. Look at our business from upside down, inside out and reversing our habitual way of perceiving things. Start questioning everything. Don’t assume things must always be done a certain way.

It is the attitude of questioning everything that gives us innovations without which our lives would look very different today. Take for example the ATM—the ubiquitous Automated Teller Machine. Prior to its invention, who would have imagined being able to take money from the bank without being in the bank and not having another human being dispensing cash to you—the teller, and on a 24/7 basis? Imagine if everyone accepted the status quo then—our life would be very different today—without the convenience and efficiency that such an invention would bring. That idea had certainly transformed the business of banking, the way banking service is being consumed, enable massive scaling, enhance productivity for the industry and enable human resource to be deployed for higher value added work which attracts higher pay. The result is a virtuous cycle with a multiplier effect indeed.

Necessity is the mother of invention. Let’s look for the opportunity in the crisis.