Singapore Real Wages Rise 3.2% in 2024 Amid Softening Employer Sentiment

Singapore's real wages increased by 3.2% in 2024, a significant improvement over the 0.4% growth seen in 2023, supported by a lower inflation rate of 2.4% compared to 4.8% the previous year. Nominal wages rose by 5.6%, slightly higher than in 2023, with more firms granting wage increases despite a slight decline in the proportion of profitable businesses. However, employer optimism for future wage hikes has waned, with only 22% of firms planning wage increases in 2025, down from 32% in late 2024, largely due to geopolitical tensions and global trade uncertainties. The Ministry of Manpower anticipates a moderation in wage growth in 2025, particularly in trade-reliant sectors like manufacturing and wholesale trade, though the tight labor market may limit the extent of this slowdown. Policymakers continue to monitor these trends closely, balancing economic competitiveness with fair wage progress amid external risks and cost pressures. Overall, while wage growth in Singapore is currently robust, future prospects remain cautious given global economic uncertainties.