Singapore firms plan wage freezes and boost AI focus in 2027
Singaporean employers are increasingly cautious about 2027, with over half planning to freeze or moderate salary increases due to rising costs and economic uncertainty. Many firms are shifting their focus toward AI adoption and workforce upskilling to maintain competitiveness.
Why it matters
The trend reflects broader economic pressures in Asia where businesses are prioritizing technological efficiency over wage growth to navigate an uneven business outlook.
Rising manpower costs and continued uncertainty over the business outlook are pushing companies to be more cautious.
Listen Summarise More than half of Singapore employers plan to freeze or moderate salary increases in 2027 due to rising manpower costs and uncertain business outlook. Most employers remain committed to salary increases for lower-wage workers, while many are prioritising AI adoption and workforce upskilling. Business outlook is uneven, with outward-oriented sectors improving but domestic sectors facing weak demand and higher costs, highlighting economic disparities. AI generated
SINGAPORE – More employers in Singapore are planning to freeze salaries or give smaller wage increases in 2027 compared with 2026, as rising manpower costs and continued uncertainty over the business outlook push companies to be more cautious.
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