6 in 10 firms plan to increase wages in the next 12 months

There are more large companies that want to increase wages compared to SMEs.

More than half of businesses in Singapore (67%) plan to increase wages over the next 12 months, data from the Singapore Business Federation showed.

Companies plan wage increases of 6% on average, said Nomura. There are also more large companies (80%+) who want to increase wages compared to SMEs (60%+).

Nomura said firms’ plans to further raise wages “reflect in part the need for companies to retain and hire more workers,  despite other cost pressures kicking in, such as the higher ceiling for Central Provident Fund (CPF) contributions and new eligibility requirements for foreign workers like COMPASS, which both started in September.”

Accelerating domestic wage growth pose, alongside more signs of persistent labour market tightness and rising food and oil prices, present upside risks to MAS’ inflation outlook, added Nomura