Too many expats could inflate wages
Singapore - Wage inflation in Singapore is fast becoming a rising concern as the country sees an influx of expatriates this year.
Following the economic slump, the local job market is rebounding faster than expected, according to Alistair Cox, CEO of global recruiting firm Hays. With the recruiter recording a 35% to 45% rise in job applications from expatriates in the last quarter, Cox said wage inflation is becoming a concern as Singapore becomes more popular with expatriates.
Cox said wage inflation will increase by 5% to 10% over the next 12 months, while the banking sector could see inflated pay figures reaching 15% to 20%.
Cox added that jobs in the sales and marketing, HR, construction and property sectors have grown between 17% and 20% in the last quarter. Hiring numbers also rose more than 25% in the finance, banking, oil & gas, pharmaceutical and IT sectors.
Currently, about 45% of the 1,000 new jobs placed by Hays last year have gone to foreigners. More than half of the finance technology roles, which require qualified technical specialists with investment bank or hedge fun experience, were also given to expatriates.
The recruiter expects permanent job placements to grow by 50% this year. It added that Singaporeans need to shore up on specialist skills to remain competitive in the job market and fuel the economy.
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