Singapore’s economy bleeds $15.7B annually due to mental health crisis, report reveals

SINGAPORE: Mental health challenges such as anxiety and depression are imposing a significant burden on Singapore’s economy, with an estimated cost of $15.7 billion each year, equating to nearly 3% of the nation’s GDP, according to the latest Singapore Business Review report.

This financial toll stems largely from increased absenteeism and reduced productivity, according to the Duke-NUS Medical School. Research from Duke-NUS Medical School and the Institute of Mental Health reveals that employees facing mental health struggles take an additional 17.7 sick days annually and experience a 40% decrease in productivity while at work.

Hybrid work – A key solution for employee well-being and performance

Amid these concerns, hybrid work arrangements are emerging as an effective strategy for improving both employee mental health and overall workplace performance. A recent IWG survey of over 4,000 hybrid workers found that 36% of employees report taking fewer sick days under hybrid setups. Furthermore, 70% experience a reduction in stress-related health conditions. The flexibility of hybrid work also enables 74% of employees to attend preventative health screenings, allowing them to manage their well-being more proactively.

These mental health benefits are translating into tangible business improvements. IWG’s research shows that 75% of CEOs have observed enhanced productivity, and 77% reported higher employee engagement in hybrid teams.

With one-third of Singapore’s workforce scoring low on mental health, the government is taking action to implement new policies to support hybrid work. The Tripartite Guidelines on Flexible Work Arrangement Requests—endorsed by 81% of employers—aim to provide standardised support for hybrid work. Additionally, new Workplace Safety and Health Council guidelines set to be released this year will offer strategies to assist employees recovering from mental health conditions.