Singapore companies are planning to raise wages and hire more workers in the next 12 months, despite a lack of optimism about economic prospects.
This is according to a survey by the Singapore Business Federation (SBF), which found that 67% of respondents plan to increase wages, with an average rise of 6%.
The survey also found that 89% of employers expect no change or an increase in their number of full-time employees in the next 12 months. The expected salary increases and hiring come despite companies bracing themselves for weaker economic conditions and higher costs in the coming year.
The SBF said that firms have a positive employment outlook, even though business conditions have weakened.
Experts say that the main driver of wage increases is the need to keep staff, given the tight labour market and the inflationary environment.
The survey results suggest that the Singapore economy is still resilient, despite the challenging global economic outlook.