Critics of the new leave mandate caution that while the intention is noble, the policy could place significant financial pressure on small and medium-sized enterprises. Many companies that provide outsourced services operate on very thin profit margins. Increasing the number of mandatory leave days effectively raises the cost of labor, as firms will need to hire additional staff or pay overtime to cover the gaps left by workers on leave.
There is also concern that these costs will inevitably be passed on to the service buyers, such as building management committees and government agencies. If the price of cleaning and security services rises too sharply, some clients might look for ways to cut back on services, which could paradoxically lead to fewer job opportunities or reduced hours for the very workers the policy is meant to help. The economic reality is that every increase in mandated benefits must be balanced against the ability of the market to absorb those costs.
Furthermore, some business owners argue that the government should focus more on productivity-enhancing measures rather than just increasing leave entitlements. They suggest that if workers were equipped with better technology or more efficient processes, they could achieve more in less time without the need for government-mandated leave increases. The fear is that without a corresponding focus on efficiency, these policies could make the local outsourced sector less competitive compared to other regional markets.