(May 29): Singapore’s wage growth is expected to moderate this year as companies adopt a measured approach with heightened geopolitical tensions and inflation risks.
The city-state’s emphasis is to align salary increases with productivity gains and preserve employment, the Ministry of Manpower said in a report released Thursday. Nominal wages of resident employees rose 4.9% last year, slowing from 5.6% in 2024.
More than half of Singapore companies polled by an industry group last month said they are worried about labour expenses in an uncertain global economic environment. The jobless rate in the city-state edged up to 2.1% in the first quarter from 2%.
Prime Minister Lawrence Wong has pledged to help workers cushion the impact from faster, unprecedented economic shifts in a volatile world confronted by the Middle East conflict and the rapid rise of artificial technology. Those disruptions are starting to hit home with Meta Platforms Inc and German biotechnology firm BioNTech SE among those cutting jobs.
Labour demand is likely to be subdued this year as firms turn cautious, the Monetary Authority of Singapore warned in April. A prolonged economic slowdown could see hiring plans being scaled back and layoffs rising.
Uploaded by Chng Shear Lane
