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Wage increase in Singapore to slow next year: report
WAGE increase in Singapore is set to slow to 4 per cent next year amid the cautious business outlook, a report by Korn Ferry Hay Group said on Wednesday.
This is weaker than the 4.4 per cent increase in salary that is expected in Singapore this year.
"The low increment projection for Singapore is in line with muted business sentiments amid a global slowdown and businesses adopting a still-cautious outlook," the report said.
Given the low inflation forecast, real wage increase next year in Singapore should come in at 3.7 per cent, the report showed.
It did not provide the real wage increase expected for 2015, but by BT estimates, in taking an expected 0.5 per cent fall in inflation this year as according to the forecast by the central bank, workers here should see a real wage increase of about 4.9 per cent in 2015.
With the weak inflation overall, real wages in Asia are expected to rise by 4.2 per cent - the highest globally. The largest real wage increases are forecast in Vietnam, China, and Thailand. Workers in China are set to see an 8 per cent salary increase in 2016, amid the increasing need for skilled workers and the sustained rise of the burgeoning middle class, the report said.
Globally, workers are expected to see real wage increases of 2.5 per cent - the highest in three years.