Singapore's selective hiring reflects wider trend in Southeast Asia
Nearly a third of employers in Singapore are selectively hiring for employees, according to a new report, which said there is a "precision hiring economy" in the broader Southeast Asia.
Findings from the latest Reeracoen Group report, made in partnership with Rakuten Insight, showed that selective hiring is the dominant workforce posture across six SEA markets, including Vietnam, Philippines, Thailand, Indonesia, Singapore, and Malaysia.
In Singapore, 32% of employers said they are selectively hiring, while 27% said they have frozen hiring. Another 17% said they are reducing hiring, while just eight per cent said they are expanding headcount.
Even among Singapore firms that have reported improved revenue, more than half (52%) said they are still hiring selectively, while 23% said they are expanding.
Singapore's preference for selective hiring is reflected across the broader SEA region, where the majority of employers in all markets said they are hiring selectively.
"The relationship between business growth and hiring is changing. Across ASEAN, companies are investing with greater precision rather than simply expanding headcount," the report read.
What's behind the selective hiring trend?
It attributed this "precision hiring economy" to a number of factors, including many businesses absorbing revenue gains into margin recovery and debt reduction after years of disruption.
"The rising availability and adoption of AI and automation tools may be allowing businesses to grow output without proportional headcount increases," it also said.
It added that uncertainty about the durability of revenue improvement may also be "making leaders cautious about committing to fixed costs that come with permanent hires."
The report, however, urged employers to explicitly define the factors that could make them start hiring again.
"If revenue improvement alone does not unlock headcount, what does?" the report read.
"Defining these triggers — whether they are margin thresholds, client wins, or strategic capability gaps — allows organisations to be intentionally selective rather than inadvertently paralysed."
What it means for HR leaders
For HR leaders, the precision hiring economy means hiring processes should be designed for quality over volume, according to the report.
"The average role will attract more scrutiny, take longer to approve, and need to demonstrate clearer ROI," it said.
"Talent pipeline strategies, maintaining relationships with pre-qualified candidates who can be activated quickly when a role opens — become more valuable than reactive recruitment."
