More Singapore firms plan to freeze or moderate wages and boost AI focus in 2027: SNEF
More companies reported concerns over the rising cost of upskilling and reskilling their workforce.
Singapore employers are increasingly planning to freeze wages or provide smaller salary increases in 2027, according to a new survey by the Singapore National Employers Federation (SNEF). The survey revealed that 51 percent of the 320 polled employers intend to freeze salaries in 2027, up from 48 percent in 2026. Meanwhile, only 49 percent plan to give salary increments, down from 51 percent in the previous year. Small and medium-sized enterprises (SMEs) are particularly cautious about wages.
The majority of employers (86 percent) still plan to maintain built-in salary increases for lower-wage workers in 2027, though this has decreased from 96 percent in 2026. In contrast, 14 percent plan to freeze salaries in 2027, compared to less than five percent in 2026. Regarding employment, while 63 percent of employers expect uncertain business conditions in 2027, 83 percent of employers reported rising manpower costs as their top challenge, up from 79 percent in 2026.
Additionally, 30 percent of companies are now concerned about the increasing cost of upskilling and reskilling their workforce in preparation for evolving business and technology needs.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
