SINGAPORE, April 14 — Hiring momentum in Singapore is expected to slow in 2026, while wage growth is likely to moderate as geopolitical uncertainty stemming from the West Asia conflict weighs on business sentiment, the Monetary Authority of Singapore (MAS) said.
According to Channel NewsAsia, MAS noted in its latest quarterly macroeconomic review that firms are likely to adopt a more cautious stance on manpower expansion, with salary increases also expected to come in softer than in 2025.
The central bank said its assessment was partly based on a business optimism index by the Singapore Commercial Credit Bureau during the outbreak of the war, which showed a slight weakening in overall business outlook.
It added that employment growth is projected to ease from last year’s gains, with non-resident job growth adjusting in line with the broader slowdown.
However, resident employment is expected to remain supported by continued hiring in domestic-oriented and modern services sectors, including healthcare, public administration and education, where labour demand remains structurally firm.
MAS also highlighted ongoing shortages in skilled roles such as technology and engineering, driven by rapid technological change, which continue to support hiring in those areas.
Sectors more exposed to energy price shocks could see a pullback in recruitment, although MAS said overall labour market conditions are likely to remain broadly balanced.
On wages, the central bank expects nominal resident wage growth to moderate this year compared with 2025.
It said pre-committed salary increases and policy-driven schemes, including the Progressive Wage Model, would still provide some support to overall earnings.
However, MAS warned that a deeper or more prolonged economic slowdown could lead to weaker hiring, higher retrenchments and a sharper easing in wage growth.
The projections come after Singapore’s labour market recorded stronger momentum in the second half of 2025, with total employment rising by 17,700 in the fourth quarter, driven largely by non-resident construction workers.
Excluding construction, employment growth remained stable, while resident employment continued to expand, particularly in domestic services and modern services sectors such as retail, food and beverage, and administrative support.
The report follows recent parliamentary statements on Singapore’s response to the West Asia conflict, where officials warned of spillover risks to the labour market.
Manpower Minister Tan See Leng had said the government’s priority is to support fresh graduates potentially affected by artificial intelligence-driven disruptions, while noting that a freeze on foreign worker levies could risk undermining longer-term economic resilience.
