What is Singapore’s economic outlook this year?
If you’re hoping for a better showing in Singapore’s economic growth this year, you might not be left disappointed. After a resilient performance in 2023- recovering from an unprecedented pandemic and geopolitical upheavals – economists are looking at 2024 with more optimism.
While it is still too early to tell how Singapore’s economy will fare this year, the signs are positive. It grew faster than expected in the final quarter of 2023, with the electronics and precision engineering clusters rebounding after a strong recovery in semiconductor sales globally and domestically.
However, the Ministry of Trade and Industry still maintains a cautiously optimistic stance, announcing growth forecast for 2024 at a range of 1 to 3%, in the face of geopolitical uncertainties and global economic risks.
Can I expect a significant salary increment this year?
If you’re hoping for a salary increment this year, good news: workers in Singapore are expected to receive a 4% increase in nominal wages according to recent forecasts from talent firms. The forecast for 2024 indicates an optimistic outlook for real wage growth, with a significant rebound expected compared to the decline experienced in 2023.
According to global consulting firm Mercer’s Total Remuneration Survey 2023, employees in Singapore may expect a median wage boost of 4.2% in 2024, up from 4.1% in 2023. The expected increase in median wage rise can be related to factors such as:
- Rising demand for skilled professionals
- Need to attract and retain top talent in a fiercely competitive job market, and
- Persistent inflationary pressures
However, it’s important to note that due to an expected easing of inflation, the real wage growth is forecasted to be around 0.5% in 2024, signifying a return to real salary growth after a decline of 1.5% in 2023 due to high inflation rates.
Read More: Salary Increments in 2024: What’s the Outlook for Singapore Workers?
Which sector is expected to witness salary growth this year?
It goes without saying that salary increments are affected by varying performance in different industries. Forecasts by Mercer suggest wage growth will probably continue on a stable trajectory this year in several different areas.
Leading the pack with the biggest estimated pay increase of 4.5% is the Aerospace industry, followed by Banking & Finance, Consumer Goods, and Lifestyle Retail which are all forecasted to experience increases of 4.4% combined.
On the other hand, compared to last year, High Tech (4.1%) and Logistics (4%) anticipate relatively smaller pay increases.
Regarding industry salary trends, Andrea Tan, Rewards Consulting Leader at Mercer Singapore said, “The Consumer Goods and Lifestyle Retail industries’ focus on leveraging technology and data-driven approaches to enhance customer experiences and drive sales growth has contributed to salary increases as companies compete for talent with data analytics and digital marketing expertise.
“On the contrary, downsizing and layoffs by High Tech companies, along with global supply chain disruptions and rising costs in the Logistics industry, have led to a more cautious approach towards salary increments in 2024.”
If you’re curious about the salaries of jobs in the different sectors, below are some helpful links to help you find out more:
Latest updates from Budget 2024
If you need more assurance about your income in the near future, worry not as the government is doing its part to assist lower-wage workers. From 2025, the Workfare Income Supplement (WIS) scheme, which tops up the salaries of lower-income workers to help them save for retirement, will be enhanced.
- Qualifying income cap will be raised from $2,500 to $3,000
- Workfare payout for lower-wage senior workers will increase from $4,200 to a maximum annual payout of $4,900
- Local Qualifying Salary for full-time local workers at companies that hire foreign workers will be raised from $1,400 to $1,600 (minimum hourly rate will be increased from $9 to $10.50 per hour)
Read More: Budget 2024: Helping Singaporean Workers, Jobseekers, and Employers to Grow Greater Expertise
Bigger salary: Stop hoping and do something
If you’re feeling stuck with sluggish salary increments or perhaps looking for a job with a higher salary, it’s time to take charge and upskill yourself. Investing in your skillset not only enhances your professional profile but also opens doors to better opportunities across various industries.
If you’re unsure of where to start, Workforce Singapore has an array of platforms specially designed to help you meet your career goals.
CareersFinder
If you want to improve your career health, this MyCareersFuture feature is designed to help you better plan your upskilling and career journey through personalised jobs and skills recommendations.
Polaris
Think it’s time for some career planning? Polaris is your go-to programme tailored exclusively for you and designed to match your unique aspirations and ambitions. Sign up today!
Career GRIT
Need help in kickstarting your job search journey? Career GRIT equips you with the essential tools for an effective job search and prepares you for different employment scenarios. Explore now!
