- Singapore Press Holdings
A survey found that Singapore workers will see a real salary increase of 2.6 per cent next year.
This 2019 forecast (2.6 per cent) is lower compared to the increase received in 2018 (2.9 per cent).
This is because of higher inflation, human resources data firm ECA International (ECA) said on Thursday (Nov 22).
In its latest report, ECA predicted that inflation in Singapore will rise from one per cent in 2018 to 1.4 per cent in 2019.
But the good news is that while the projected pay rise in Singapore is slightly lower than the Asia Pacific average increase of 2.7 per cent, it will continue to be higher than that in Hong Kong and Japan, ECA said.
The predicted global average pay raise of 1.2 percent is almost half of that of Asia Pacific’s.
In fact, Asia Pacific countries dominated a ranking of those with the highest real wage increases, occupying 14 spots out of the global top 20.
Singapore did not make it into the global top 10, but in terms of comparative salary increase in Asia Pacific, the country was ranked 11th out of 20.
Almost all the top ten countries in the global rankings are Asian – with the exception of Ukraine, which came in ninth, with an expected real salary increase of 2.7 per cent.
Malaysia and Korea Republic were also ranked ninth.
The report said: “The impact of recent political events in Malaysia have not made a noticeable difference to salaries, as the nominal rates of salary increases will remain at 5 per cent in 2019, the same as in 2018.
“However, with inflation expected to increase at a faster rate in 2019 compared to 2018, Malaysians will not see as high a rate of increase in their real incomes in 2019 as they did this year.”
India topped the global list, with employees forecast to receive a 5.1 per cent real salary increase, more than twice the increase employees in Hong Kong will experience. Vietnam and Indonesia ranked second and third respectively in the global rankings, due to their “rapidly growing economies”.
China, which was ranked fourth alongside Thailand, is expected to see a real salary increase of 4.1 per cent. In greater China, mainland China will lead the way with real salaries increasing at the fastest rate in 2019, followed by Taiwan, Hong Kong and Macau.