40% of S'pore businesses plan to expand hiring: SBF poll

Reflecting caution, 48% of respondents plan to maintain current staffing levels

Amid a growing sense of confidence in the economy, 40 per cent of companies here intend to expand hiring in the next 12 months, up from 29 per cent in 2023, according to an annual manpower and wage survey by the Singapore Business Federation (SBF).

More businesses expect the economy to improve (27 per cent) than worsen (24 per cent) in the same period, while about half expect conditions to remain flat, said SBF on Aug 22.

But its chief executive officer Kok Ping Soon noted: "While there are signs of a more positive employment outlook with some businesses seeking to expand hiring and raise wages, a sizeable proportion of businesses continue to be cautious about the future." Around 48 per cent of respondents plan to maintain their current staffing levels, which SBF said reflected "caution amid the current economic climate".

Fewer plan to cut headcount, at 12 per cent, down 4 percentage points from 2023. Those who plan to do so mostly cited a decline in business activity, economic uncertainty and cost management.

There was more optimism about the economy from companies in logistics and transport, as well as banking and insurance. Those in hotels, restaurants and accommodations, as well as administrative and support services, were more pessimistic.

In general, small and mediumsized enterprises (SMEs) had gloomier outlooks than large companies.

Sentiments for both the global and Asean business climate were more neutral in 2024, with a smaller proportion of respondents feeling either satisfied or dissatisfied compared with 2023.