Rising costs remain top manpower challenge for 67% of SMEs

Foreign manpower policies were the second-most cited concern at 46%.

Rising manpower costs remain the biggest manpower challenge for small and medium-sized enterprises (SMEs), cited by 67% of respondents, up from 63% in 2025, according to the Singapore Business Federation’s National Business Survey 2026.

Foreign manpower policies that raise costs were the second-most cited challenge at 46%, up from 44% a year earlier.

Attracting and retaining younger workers was joint-third at 41%, up from 35%, whilst the same proportion reported difficulty finding candidates with relevant skill sets, up from 34%.

Another 37%, up from 37% in 2025, said they were unable to reduce their dependence on foreign manpower, ranking it as the fifth-largest manpower challenge.

The report, released in September, was based on 433 SMEs in Singapore.

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