Most companies in Singapore expect no change or an increase in manpower, even with a pessimistic economic forecast for the next 12 months
A recent survey by the Singapore Business Federation (SBF) revealed that despite a weaker economic outlook for the coming year, 89% of companies in Singapore expect no changes or even an increase in their manpower. Conducted from July 20 to July 31, the survey sampled 282 companies, highlighting that while over a third of businesses anticipate a worsening economic climate, employment stability remains a priority.
The survey found a divide in sectoral optimism. Companies in the “other services” category, such as repairs and servicing, along with wholesale trade and manufacturing, were more optimistic, whereas sectors like information and communications, professional services, retail, hotels, and food and beverages were more pessimistic.
Inflationary pressures, particularly rising business costs, were identified by 60% of companies as a major factor affecting their operations. However, despite these economic challenges, companies seem committed to maintaining employment levels. Only 10% of businesses expect a decline in their workforce over the next year, with 20% of firms planning to increase headcount following a rise in staff numbers during the past 12 months.
Moreover, salary increases have been reported by 76% of companies in the past year, and about two-thirds of businesses expect to continue this trend into the next year. Training also emerged as a key focus, with 84% of companies having sent employees for training, although small and medium-sized enterprises (SMEs) face challenges in offering training programs that meet practical business needs.
The findings suggest that while businesses may face economic difficulties, the employment market is holding steady, with the potential for continued salary growth and investment in workforce development.
