Singapore sees 4.3% wage growth this year, lowest in Southeast Asia

SINGAPORE: According to the recently released Salary Increase and Turnover Survey, wages in Singapore increased by 4.3 per cent this year. While it is higher than the 4.2 per cent rate in 2024 and the 4.0 per cent rate in 2023, it is the lowest in the region.

The average salary growth in Southeast Asia for 2025 is 5.4 per cent.

The survey, conducted by the professional services firm Aon, examined employee turnover rates and salary adjustments across over 700 companies in Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam, from July to September of this year.

Vietnam has shown the largest salary growth this year, 7.7 per cent; followed by Indonesia (5.7 per cent), and the Philippines (5.3 per cent). In Malaysia, Singapore’s closest neighbour, salaries rose by 4.8 per cent this year, and in Thailand, they increased by 4.6 per cent.

However, a report in the South China Morning Post pointed out that Singapore’s wage growth, which does not account for inflation, is higher than Hong Kong’s 3.9 per cent. The two cities are often compared as they both have high GDP per capita and are global logistics and transportation hubs.

As for 2026, the survey showed that overall, firms in Southeast Asia have budgeted a 5.3 per cent wage increase, with Singapore’s staying unchanged at 4.3 per cent.

Interestingly, it also noted that in an analysis of salaries by country, in Singapore, the life sciences and medical devices sector is expected to go up the most (4.6 per cent). In Vietnam (7.1 per cent) and Indonesia (5.9 per cent), it’s the tech sector. Meanwhile, in Malaysia, it’s the consulting, business, and community services industry (4.8 per cent).

Employee turnover rates

For this year, every Southeast Asian country that was surveyed had projected turnover rates in the double digits, led by the Philippines (20.0 per cent) and followed by Singapore (19.3 per cent) and Malaysia (18.2 per cent). The average across the region is 15 per cent.

Across industries, consulting, business, and community services had the highest attrition rates (22.6 per cent), followed by retail (21.6 per cent) and manufacturing (17.5 per cent).

“The study revealed that 42 per cent of businesses report challenges in hiring or retaining employees. Additionally, 63 per cent are currently facing skills gap challenges, while 12 per cent anticipate short-term gaps and 16 per cent foresee longer-term gaps. Roles in information technology, engineering, and sales remain the hardest to fill, while new hire premiums range between 1.3 to 8.2 per cent, lower than the previous year, reflecting higher cost controls,” Aon added.

It also identified the most in-demand jobs across the region, which are sales (24 per cent), information technology (24 per cent), artificial intelligence (AI)/machine learning (ML) (21 per cent), cybersecurity (20 per cent), and engineering (19 per cent). /TISG

Read also: MOM: 3.2% real wage growth in 2024 as inflation eased