Singapore employers are expected to maintain a cautious approach towards wage increases and hiring in 2027, even as the business outlook has improved modestly, a survey conducted by the Singapore National Employers Federation revealed on Thursday.
The Survey on Wage and Employment Outlook 2026/2027 found that rising manpower costs remained employers’ biggest workforce challenge, cited by 83 percent of respondents, up from 79 percent in 2025.
Concerns over the rising cost of upskilling and reskilling workers also increased, with 30 percent of employers highlighting the issue, compared with 23 percent a year earlier.
However, labor market tightness has eased. Fewer companies reported difficulties attracting and retaining professionals, managers, executives and technicians, at 41 percent, compared with 47 percent previously. Concerns over shortages of local high-skilled talent also fell to 35 percent from 42 percent.
Despite the easing, attracting suitable talent remained employers’ top human resource priority, cited by 59 percent of respondents. Companies are also placing greater emphasis on exploring and adopting artificial intelligence, with 48 percent identifying this as a priority for 2027, up from 39 percent for 2026, alongside efforts to upskill and reskill employees.
The survey showed a modest improvement in business sentiment, with the proportion of employers expecting uncertain prospects in 2027 falling to 63 percent from 72 percent in 2026. Meanwhile, 65 percent of companies expect to perform well, compared with 63 percent a year earlier.
The outlook, however, remains uneven across sectors. While some export-oriented industries are benefiting from stronger external and technology-driven demand, domestically focused sectors such as retail trade and food and beverage services continue to face softer consumer demand and rising operating costs.
The survey, conducted between June and August 2026, gathered responses from more than 300 companies employing close to 160,000 workers across 20 industries.
