Singapore logistics firms mull cost-cutting moves amid energy crisis, but some EV adopters find room to expand

The firm has begun tightening hiring, prioritising only essential roles, and raising productivity expectations across teams. It is also reviewing costs across departments to improve efficiency, said Mr Tay.

“Workforce adjustments would only be considered under sustained and significant deterioration in business conditions, such as prolonged fuel price escalation combined with a substantial and persistent decline in demand.

“At present, we are not at that stage,” said Mr Tay.

Pacific Logistics Group (PLG) also does not foresee reducing its workforce, said its commercial director Edwin Lim. Instead, the company will be diversifying its business streams by strengthening its warehouse capabilities and expanding services to boost its portfolio.

It is also raising the skills and productivity of workers through training and development courses. 

“The company remains committed to hiring, while managing costs prudently,” said Mr Lim. This includes bringing in interns and students in work-study programmes to develop future talent, he added.

Singapore Logistics Association chairman Dave Ng told CNA there was no clear sign of broad-based retrenchment across the logistics sector at the moment.

Still, he noted that the operating environment has become more challenging for the industry, with cost pressures arising from fuel, electricity, materials and other business expenses.

“While companies continue to manage through cost controls and operational adjustments, prolonged increases across these areas may place greater strain on SMEs, especially those operating on tighter margins,” said Mr Ng.

Support measures that can help affected businesses manage these pressures would be useful in sustaining operations, he added.

Earlier in April, the Singapore government announced initiatives to help businesses affected by the Middle East crisis. This includes increasing the corporate income tax rebate for the Year of Assessment 2026 to 50 per cent from 40 per cent.

The Energy Efficiency Grant – a subsidy for businesses to purchase energy-saving equipment – will be extended to all sectors for another year, to Mar 31, 2028.