Singapore employers plan wage moderation and hiring freezes for 2027

A survey by the Singapore National Employers Federation (SNEF) indicates that more employers plan to freeze or moderate wages in 2027. According to the findings, 51% of 320 polled organisations intend to moderate pay, an increase from 48% in 2026. While the business outlook is improving—with 65% of companies expecting to perform well in 2026 compared to 63% in 2025—the wage outlook remains cautious.

Regarding employment, 54% of employers do not plan to increase their headcount in 2027, though this is a slight decrease from 58% the previous year. Conversely, 40% of companies plan to expand their workforce, up from 33% in 2026.

SNEF noted a “K-shaped” economic divergence, where outward-oriented sectors benefit from technology-driven demand, while domestic sectors like retail and food and beverage struggle with rising operating costs and weak consumer demand. Rising manpower costs were cited as a top challenge by 83% of employers. Despite these pressures, 48% of respondents identified exploring or adopting AI as a priority for 2027.