SALARY increases in Singapore are slowing down to a crawl, according to ECA International's latest Salary Trends Survey.
Held in February, the survey monitors how economic conditions have changed since its first run in September 2008. The data reflects nominal wage projections.
Singapore workers will see a lower pay increase of 2 per cent, down from 5 per cent last year. This is well below the regional average of 4.8 per cent and almost two-thirds lower than initial forecasts.
Of the 41 companies surveyed for Singapore, 36 per cent announced intentions to halt pay increases. These companies included multinational corporations (MNCs) as well as other companies headquartered here.
Other countries and territories in the region are also experiencing the squeeze. Japan, Taiwan and Hong Kong have recorded a steep fall in expected wage increases. In addition, almost a third of Asia Pacific-based companies surveyed plan to freeze salaries.
However, there are still some bright sparks in the region.
India, Vietnam and Indonesia are expected to see wage increases of 10.8 per cent, 10.6 per cent and 9 per cent respectively.
In particular, Vietnam is the only country in the region where rises are predicted to outstrip last year's.
'There is still a huge demand for talent in India which is keeping salary increases high despite the current economic situation. While in Vietnam and Indonesia, persistently high levels of inflation are keeping increases up,' said Lee Quane, regional director for ECA International's Asia operations.
However, in most other countries including Singapore, annual inflation rates have fallen. Hence, 'real wage increases - the difference between actual salary increases and inflation - may not differ significantly from last year'.
