More Firms in Singapore to Freeze Wages Amid Rising Pessimism: SBF Survey

SINGAPORE – More businesses in Singapore are tightening their wage policies as confidence in the economy weakens, according to a Singapore Business Federation (SBF) survey released on Aug 28. The survey shows firms are increasingly bracing for slower growth, with small and medium-sized enterprises (SMEs) leading the trend in wage freezes.

Key takeaways from the survey: Wages freeze

Wage outlook: 41% of firms plan to freeze wages (up from 35% in 2024); only 59% expect to raise salaries (down from 64%).
Company size matters: 43% of SMEs intend to freeze wages, compared with 28% of large firms.
Hiring slowdown: Only 36% of firms plan to expand headcount over the next 12 months, down from 40% in 2024.
Sector outlook: Hospitality, admin support, and IT companies are most pessimistic; health, social services, and education are more optimistic.
Business sentiment: Overall confidence fell, with the Business Sentiment Index slipping to 55.4 in Q2 from 56.5 in Q1.
Workforce challenges: Rising manpower costs remain the top concern (65%, down from 75% last year). Upskilling difficulties surged to 47% from 25%.
Tariff impact: Concerns over US tariffs eased, with 59% citing negative effects in July versus 81% in April.
Skills-first hiring: Only 18% of firms have adopted skills-first hiring, citing uncertainty about candidate readiness and training needs.