Retrenchments and Vacancies in Singapore

If you read the news, you will notice both retrenchment and vacancies are happening simultaneously in Singapore.

CNA Commentary : As retrenchments rise in Singapore, only the paranoid will survive

BT News : Share of newly created job vacancies in Singapore at six-year high

So, what’s really happening?

There is a big shift in Singapore’s economy.

Here are a few observations:

Business NOT as usual (BNAU)

Every company is facing headwinds, some stronger than others. Business models that worked in the past are no longer applicable. I have heard this in every sector.

1. In renewable energy, it’s not easy to make money as the business models are constantly evolving.
2. In telco, companies are still figuring out how to make money from the high data consumption. It defies logic, thanks to competition, that we don’t pay a lot for 5G access.
3. In machinery, every Western company is facing Chinese competition. It’s hard to ignore the “good enough” equipment that Chinese companies are selling.

In short, you need to review all your company's strategy and business plans. Throw out the old playbook and develop a new one. Business leaders will need to lead with insight and learn quickly about the new environment.

Singapore is a high-cost country

Singapore is a high-cost country and the cost will continue to go up. Many companies, especially SMEs, are operating on a low-cost labor model. This will not work anymore.

The qualifying salary for Employment Pass (EP) will raise to $5,600 by Jan 1, 2025. It will not be possible for many SMEs to hire employees at that level. If there are no contingency plans, the company will go into losses.

In short, move up (the value chain) or move out (to another low cost country like Malaysia or Indonesia). There is really not much option left.

The tech sector continues to grow

The tech sector is not contracting, just shifting. Tech workers continue to be in high demand and the skills required are changing. If you know something about AI, you will get at least 3 job offers. But no one can guarantee that your job will be there in 12 months. So, be mentally ready for change.

Remember: AI does not take away human jobs. It is Humans with AI who take jobs away from Humans without AI.

Microsoft just appointed Mustafa Suleyman as the new CEO of Microsoft AI. This is a big move and I imagine all our Microsoft products to be souped up with AI functions.

Singapore Inc is ready for the future

Singapore is rather advanced in preparing for the future. The Singapore Economy 2030 vision shares four key pillars of growth: Trade, Enterprise, Manufacturing and Services.

Although it doesn’t have a crystal ball, it is willing to invest big time in human capital and smart technology. There is a lot of prudence and a deep-dive approach in making these strategic decisions.

While I don’t foresee another Jurong Island (petrochemical hub; low hanging fruit), I think Singapore will continue to remain relevant in the world of AI, global trade flows, and climate change/carbon trading.

It's very interesting to see the appointment of Ravi Menon, Singapore's former Central Banker to be the first Ambassador for Climate Action !

Conclusion

In summary, the future remains bright for Singapore. But everyone needs to learn more to remain relevant to the new world.

What have you learnt in the last 3 months? Have you upgraded yourself in the last 12 months? It’s never too late, only too little.

If you are a Singaporean, how do you plan to utilize the Skillsfuture grant?

To all jobhunters: Only The Paranoid Survive! (quoting Andy Grove, Intel founder)