More than half of firms have plans to freeze wages and headcount, new poll shows
Employers are taking a "measured" approach when it comes to hiring and wage increases despite improving business outlook compared to a year ago, according to a new survey from the Singapore National Employers Federation (SNEF).
The poll revealed that more than half of businesses in Singapore are not planning to increase their headcount (54%) and are eyeing wage moderation or wage freeze (51%) in 2027.
Just 40% of employers are planning to increase their workforce numbers, according to the findings, while only 49% are planning a wage increment.
"The survey findings suggest that while labour market pressures have eased somewhat, most employers continue to face significant cost pressures and uncertainties in business outlook," said Kuah Boon Wee, vice president of the SNEF Council, in a statement.
"This is reflected in the measured approach many are taking towards wage adjustments with slightly more companies planning wage moderation or wage freeze."
The report noted, however, that 86% of employers are planning to provide built-in wage increases for lower-wage workers in 2027.
The remaining 14% are planning a wage freeze, while no company is considering a wage cut for these workers next year.
"It is also heartening that most employers remain committed to supporting lower-wage workers though fewer are planning to give wage increases," Kuah said.
"To ensure that this is sustainable in the long term, we need to continue helping employers, especially SMEs, access practical support to transform their operations and workforce for greater productivity uplift."
Top challenges, priorities of employers
The findings come in the wake of improving business outlook for employers, with 65% of the respondents expecting their companies to perform well this year.
The share of employers expecting uncertain business prospects in 2027 also declined to 63%.
The top challenge cited by employers is the rising manpower cost, according to 83% of the respondents. Another 30% noted that the rising cost of upskilling and reskilling their workforce is becoming a cause of concern.
These concerns emerge as talent attraction and upskilling rise to the top of employers' priorities in 2027.
More than half of employers (59%) said attracting suitable talent is their key HR priority for next year, while another 46% said it's reskilling and upskilling their workforce.
Exploring, adopting, and enhancing the use of AI tools at work is also cited as another key HR priority by 48% of employers, according to the findings.
Employers' growing focus on upskilling the workforce comes amid strong government push to do so, with authorities rolling out various initiatives to support workforce upskilling amid ongoing AI-driven workplace transformation.
"It is encouraging to note that many employers are continuing to invest in workforce capabilities, job redesign, and AI adoption to strengthen productivity and competitiveness," Kuah said.
