40% Singapore businesses plan hiring in next 12 months: survey

Nearly half of businesses, 48%, will maintain their current staffing level and 12% plant to reduce it, according to an annual survey released Thursday by the Singapore Business Federation.

Half of businesses are neutral on their economic outlook, while 27% expect improvement and 24% anticipate worsen developments.

Optimistic sectors include logistics-transport and banking-insurance, while hotels-restaurants-accommodations are more pessimistic.

The top challenge faced by 75% of businesses is manpower cost. Around 49% of businesses plan to increase salaries, compared to 58% last year.

To stay competitive, 70% of business say they have provided training to their employees in the last 12 months.

“While there are signs of a more positive employment outlook with some businesses seeking to expand hiring and raise wages, a sizeable proportion of businesses continue to be cautious about the future,” said Singapore Business Federation CEO Kok Ping Soon.

He called on businesses to invest more in technology, job redesign, career planning and talent attraction to increase competitiveness.

The survey was carried out between June 18 and July 16, with responses from 796 businesses spanning all major industries. Among these, 82% were small and medium-sized enterprises while 18% were large corporations.