SINGAPORE (Dec 3): Singapore’s economy may be facing headwinds and inflation’s muted but companies in the Southeast Asian city-state are set to step up salary increases next year in a bid to retain staff, according to a survey.
The overall increase projected for 2020 is 3.7%, up from a 3.6% rise this year, according to Mercer LLC, which conducted the survey across industries from banking and finance to real estate. One in three companies now pay retention bonuses, up from one of four in 2017, it said.
Trade-dependent Singapore has posted slower economic growth this year amid the fall-out from the U.S.-China trade war, although the government forecasts a recovery in 2020. At present, inflation remains less than 0.5% on-year, far below the salary increases projected in the Mercer survey. Like a number of its Asian counterparts, the city-state’s workforce is aging.