Over half of firms still hire selectively despite better revenue

About 13% have frozen hiring, whilst 7% are reducing their headcount.

Hiring in Singapore remains cautious even amongst firms reporting better revenue, with 52% still recruiting selectively versus 23% expanding their workforce, according to a Reeracoen Group-Rakuten Insight report.

About 13% of such firms have frozen hiring, whilst 7% are reducing their headcount.

Across all Singapore respondents, 32% are hiring selectively, and just 8% are expanding their workforce. Meanwhile, 27% have frozen hiring, and 17% are cutting staffing.

Meanwhile, employment expectations in the third quarter have fallen to 13%, the weakest since 2021, Lewis Garrad, Workforce and Rewards Leader at Marsh Asia, told Singapore Business Review in a separate interview.

“Revenue recovery is no longer a sufficient condition for hiring growth,” Reeracoen said. “Businesses are choosing to reinvest in efficiency, technology, and margin before they reinvest in people. “

Business confidence in Singapore stood at 39%, the lowest amongst Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. Another 17% cited ‘very limited opportunities,’ the highest share amongst the six markets.

Only one in five, or 20%, of businesses said they were increasing investment. Revenue conditions were also mixed, with 38% reporting no major change and another 38% recording a decline.

Nearly a quarter, or 24%, said revenue was improving, the report added.

On the consumer side, 33% of respondents had a pessimistic economic outlook, the highest in the survey, compared to the 26% who were optimistic.

Moreover, 76% said they were spending more cautiously, and 59% were saving more.

“Understanding both sides of the equation—what consumers feel and what businesses do—is essential,” Cheryl Ng, country director for Singapore at Rakuten Insight, said.

The Reeracoen and Rakuten report surveyed 3,630 consumers and business leaders across six Southeast Asian markets in June. The Singapore sample comprised 302 consumers and 301 business respondents.

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