Here's why Singapore is still the global maritime king

Despite the well publicised, and frequently discussed, downturn facing the shipping and marine industry, two recent employment surveys have produced results which will surprise a number of people. Despite caution across the industry, Singapore is further solidifying its position and an international maritime hub of choice.

Of particular note, the recruitment side of the industry has seen a 22% increase in business compared to this time last year. This has been due to an increasing number of offshore and shipping companies restructuring their activities to have a more prominent presence in Singapore. Singapore, with its geographic location, state of the art maritime infrastructure, and commercially attractive Maritime Incentives scheme is attracting owners and contractors who are facing increased economic pressures in other parts of the world.

However, on the employee side of the ledger, perhaps unsurprisingly given the state of the international economy, maritime and shipping professionals were being more cautious before considering new opportunities. Potential employees are vetting the positions and the companies very carefully in these uncertain times.

Two recently completed Singapore surveys showed positive results both in term of companies’ hiring intent and in the annual remuneration levels companies were planning for.

See Figure 1. Percentage Increase/Decrease in Headcount for 2013/2014 

Salary-wise, although roughly 30% of companies were keeping pay rates static, over 50% were planning for a 2-4% increase, conscious to ensure that salaries were in line with inflationary predictions, and the remaining 20% were looking at pay increases of around or above 5%. 

This is likely a reflection of the increasing need to both attract and retain top local and international talent into Singapore-based roles. Singapore has seen a big increase in the number of offshore support operations, construction projects, and LNG-related business move into the local market. Companies involved in these high value projects need to attract the right people. 

Whilst Singapore may be an expensive place to live, it is important to put this into perspective in relation to increased considerably higher company and regulatory costs in other overseas locations.

All in all this is great news for Singapore, and is a positive indicator for the future development of the shipping and offshore sectors here.