Possible job cuts loom over manufacturing sector

Singapore - The global downturn may mean workers in the manufacturing sector may get the sack, said the president of the Singapore Manufacturers' Federation (SMa).

SMa's president Renny Yeo told local media the organisation is looking to help its members cut costs, save energy and source for new markets to minimise retrenchments among staff.

However, he predicts the global slowdown will lead to job cuts toward the end of the year, particularly among manufacturers of consumer products, such as in the electronics sector.

He added that it would be the production workers who would suffer the first round of job cuts, with the more supervisory roles getting slashed in the second round of retrenchments should the economic situation worsen.

Yeo said he hoped manufacturing companies would first consider flexible wages instead of retrenchment in order to trim labour costs, but believed companies would be put off by the additional paperwork and effort required to set up a system for wage evaluation.

"At the end of the day, it's worth it because you retain your core skills," he told local media. "It's going to cost you a lot more if the downturn is only for a short while and you have to start up again with higher costs."