Singapore’s overall salary growth forecast lower than average growth across Southeast Asia

SINGAPORE: Singapore companies are expected to raise salaries by an average of 4.3% next year, the same rate as the actual increase this year, according to a new survey by international consulting firm Aon.

The Salary Increase and Turnover Survey, which covered more than 700 companies across six Southeast Asian countries, found that the life sciences and medical device industries in Singapore are projected to see the highest salary growth, with an average increase of 4.6%.

Despite this, Singapore’s overall salary growth forecast remains the lowest among the six countries surveyed.

Vietnam led the region with a projected salary increase of 7.1%, followed by Indonesia at 5.9%. Across Southeast Asia, the average salary growth is expected to come in at 5.3%.

The survey also pointed to rising staff turnover, with Singapore’s rate at 19.3% — above the regional average and second only to the Philippines, which recorded the highest at 20%.

Aon noted that around 40% of companies in the region are finding it difficult to hire or retain employees, while about 60% are grappling with skills shortages.

Jobs most in demand include roles in sales, information technology, and artificial intelligence, perhaps pointing to a wider push by companies to strengthen digital capabilities and improve risk management.