SINGAPORE: A recent survey conducted by the Singapore Business Federation (SBF) reveals a growing sense of optimism among businesses regarding the nation’s economic outlook. The 2024 Manpower and Wage Survey Report shows that a larger percentage of companies anticipate economic improvement in the next year than those expecting a downturn.
According to the report, 27% of companies believe the economic situation will improve in the coming year, compared to 24% who foresee a worsening scenario. This positive shift is reflected in hiring intentions, with 40% of companies planning to expand their workforce in the coming year, a notable increase from 29% last year.
Industries such as logistics and transportation, along with banking and insurance, are among the most optimistic about future growth. However, the outlook isn’t universally positive, as sectors like hotels, restaurants, accommodation, and administration express less confidence in the year ahead.
In terms of workforce management, 48% of surveyed companies indicated they would maintain their current staffing levels, while 12% planned to reduce headcount.
Despite the growing optimism, businesses continue to face significant challenges, with labor costs being the most pressing issue. A limited local talent pool also remains a key concern for many employers.
Interestingly, fewer companies are planning to increase wages compared to previous years. Instead, many businesses are shifting their focus towards enhancing employee skills and productivity. Over the past year, 70% of companies provided on-the-job training for their employees, highlighting a trend towards investment in human capital through upskilling initiatives and flexible work arrangements.
The survey, which included responses from 796 companies across various sectors, showed that over 80% of the respondents were small and medium-sized enterprises (SMEs).
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