Singapore organisations report higher satisfaction and growing optimism for 2025, but attractiveness as a global talent hub drops to 41%

SINGAPORE: Singapore organisations reported higher satisfaction and growing optimism for 2025. According to the National Business Survey (NBS) 2024 released by the Singapore Business Federation (SBF), 40% of organisations expressed satisfaction with the current business climate, a 10-percentage point increase since mid-2024. Nearly three in 10 (26%) businesses also expect improvements in the next 12 months, compared to 22% expecting a downturn.

Despite challenges like rising business costs, especially manpower (66%) and uncertainty around customer demand (45%), 57% of businesses have managed to maintain or grow profitability.

Many have adopted strategies such as cost-saving measures (51%), price hikes (41%), and better inventory management (30%) to stay on track, HRM Asia reported.

Meanwhile, there was a slight drop in Singapore’s standing as a global talent hub. Only 41% of organisations now rate the country highly as a destination for talent, down from 43% last year, with the decline more noticeable among larger companies.

Businesses are focusing on future investments, with 36% prioritising employee training, 37% targeting new technologies and digitalisation, and 26% planning new investments in the next 12 months.

Many businesses are also seeking government support, with 35% looking for help with financing needs, 34% with human capital development, and 33% with digitalisation.

For Budget 2025, their top priorities include measures to tackle cost pressures (64%), assistance with attracting and retaining local talent (43%), and solutions for foreign manpower challenges (41%).

Kok Ping Soon, CEO of SBF, commented on the survey results, saying it is encouraging to see increased optimism among businesses. He noted that businesses are showing resilience and preparing for the future by investing in their growth.

He also pointed out that while rising business costs remain a concern, it’s heartening to see more companies willing to invest in people, technology, and new ventures.

He added, “Given our manpower constraints, we need to increase Singapore’s absorptive capacity of a complementary workforce to maintain our attractiveness as a global talent hub. With only one in five organisations have DE&I policies and providing community or cultural integration activities, organisations can do more to integrate locals and foreigners at the workplace.” /TISG

Read also: 3 in 10 businesses gain higher sales in their overseas markets in 2024

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