About 8 in 10 Singapore firms hold off workplace changes amid high energy prices

SINGAPORE: A snap poll by the Singapore National Employers Federation (SNEF) found that about eight in 10 firms have held off workforce or workplace changes in direct response to higher energy prices triggered by the Middle East conflict, as firms look to manage costs without affecting staff.

Meanwhile, among the 17% that did make changes, most froze hiring or delayed expansion plans (67%). Others redeployed or cross-trained staff (33%), or reduced headcount through natural attrition (33%). Some firms also cut bonuses, allowances or benefits (25%), or reduced work hours, overtime or shifts (19%).

Nearly all firms (96%) reported higher operating costs due to rising energy prices, while 53% said they are concerned about manpower cost pressures.

Should energy prices remain elevated over the next 12 months amid ongoing Middle East tensions, 83% of businesses said cost support, such as tax relief or financing assistance, would be most helpful, followed by energy cost relief and subsidies (77%) and delays to manpower policy changes (55%).

SNEF conducted the snap poll between April 10 and 16, 2026, drawing responses from 210 companies across the manufacturing, services and construction sectors, of which 73% were small and medium-sized enterprises and the rest large firms.

Inflation driven by the Middle East conflict has already started to affect businesses. Celebrations in the little red dot, which often include helium balloons as decorations, are expected to become more expensive as helium costs have risen by as much as 40%.

Even hawker food, often seen as an affordable everyday meal option for many Singaporeans, is already seeing higher prices amid rising ingredient costs, energy prices and fuel-related surcharges. /TISG

Read also: ‘I’m job hugging even harder’: Some Singaporeans share how they’re navigating rising costs amid the Middle East war