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Innovating to cope with labour constraints

Yasmine Yaha

23 Feb 2012

The tight labour market is restricting the ability of PTS Technologies boss Albert Loh to expand its business of creating Radio Frequency Identification Tags

PTS Technologies boss Albert Loh has big plans to expand its business of creating radio frequency identification tags, but the tight labour market is restricting his ability to do so. The firm which employs six foreigners among its 25 staff, has seen its per unit cost of labor rise since 2010 due to worker levies and more expensive local workers. To deal with this for now, the company is trying to change the way it does business as to squeeze the most value out of its current operations. PTS has also been exploring various long-term strategies to overcome its labour constraints, including relocating some operations overseas, forming alliances or joint ventures with foreign partners, and automatic some processes. The firm also recently acquired a license to produce medical devices, entry into this high-value market will give it another source of revenue, Mr Loh said. "Over the past 2 years, this is what we have been doing to deal with the increasing costs - innovating, finding creative ways to expand our customer base and enter new markets. "We have also tapped on a number of government schemes to improve productivity. We'll continue to do all these things as we try to survive

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