SINGAPORE: Amid growing uncertainties from the Middle East conflict, companies could become more cautious in hiring extra manpower in 2026 and salary increments are likely to be smaller than the previous year, said the Monetary Authority of Singapore (MAS) on Tuesday (Apr 14).
In its latest quarterly macroeconomic review, MAS cited a business optimism index conducted by the Singapore Commercial Credit Bureau during the outbreak of the war and said that the overall business outlook has softened slightly.
“With the anticipated slowing of the economy, employment growth is expected to ease from the gains in 2025, with non-resident employment growth adjusting in tandem,” MAS said.
Meanwhile, resident employment growth should continue to be sustained by hiring and vacancies in the domestic-oriented and modern services sectors.
For example, in sectors such as health and social services, public administration and education, labour demand continues to be “structurally sound”, said the report.
There are also unfilled vacancies for skilled workers in technology and engineering-related roles as technology develops rapidly, MAS noted.
As for companies in sectors that are more significantly affected by energy shocks, MAS said they could pull back on hiring, but the market should remain balanced.
