NDR 2026: Businesses welcome government move to cover childcare leave costs, but manpower concerns remain

“The enhanced reimbursement support can also help employers adopt measures to address operational challenges arising from staff absences, including engaging temporary manpower where appropriate,” he added.

BURDEN ON SMALLER BUSINESSES

Mr Josiah Tan, co-founder of soup store OMMA Chicken Soup, said it would have posed a “significant problem” for his business had the government not picked up the full costs. 

He added that for businesses in the F&B sector, there is no option for remote work, with employers needing to search for replacements.

“The root problem is that someone is missing, but the job still needs to be done. (The question is) how can we still get the job done while the person is gone,” he said.

Mr Hao acknowledged that some employers will be concerned by the changes. 

“But if you look across the workplace, unless you are an employer with a high percentage of employees who have caregiving needs, I would say it is probably more manageable,” he said.

“I do recognise there are employers who have quite a number of employees in that age range and therefore have to make new provisions for their employees’ childcare leave. For such employers, some additional support, for example temporary manpower services, may be needed.”

Aureus, which has about 750 employees, is well-positioned to handle the change, Mr Holmefjord-Sarabi said, though challenges remain, such as finding replacement teachers or managing customers who want continuity in who teaches their children.

“At the end of the day, we feel like overall it’s still manageable, it’s still workable,” he added. “Depending on which team in our company, and which sector an individual or company is in, it will have different challenges that they have to work with.”