Domestic, border reopenings could further push up consumer prices amid scramble for labour

Singapore

SINGAPORE'S domestic and border reopening could push up consumer prices even further, as employers struggle to fill vacancies in a tight labour market, industry watchers have warned in conversations with The Business Times.

While more foreign workers are expected to return as travel restrictions ease and cross-border commuting with Malaysia resumes, upward pressure on wages could still exacerbate local cost conditions. Barclays economist Brian Tan said in a report that "the reopening of the economy will likely further strain the labour market, which is already suffering from shortages, and further fuel wage growth".