SINGAPORE: Most employers in Singapore have yet to make direct changes to their workforce or workplace arrangements in response to rising energy prices, according to a snap poll conducted by the Singapore National Employers Federation (SNEF).
The survey, carried out between Apr 10 and 16, gathered responses from 210 companies across the manufacturing, services and construction sectors. Findings released on Monday (Apr 20) showed that 83% of employers have not introduced measures that would directly affect employees, suggesting that businesses are prioritising operational adjustments before turning to workforce-related actions.
Among the minority that have implemented changes, about two-thirds reported freezing hiring or postponing expansion plans. Around a quarter said they had reduced bonuses, allowances or other benefits.
Some firms have also taken steps such as cutting work hours, overtime or shifts, redeploying staff, introducing cross-training, or allowing headcount to decline through natural attrition.
Rising energy prices have had a widespread impact on business costs. Nearly all respondents — 96% — reported higher operating expenses, while 53% expressed concerns about increasing manpower costs. Of those experiencing higher operating costs, about two-thirds said these had risen by more than 10%, indicating moderate to significant increases.
Utilities and fuel were the most commonly affected cost components, each cited by 70% of respondents. This was followed by materials and supplies at 59%, and air and sea freight at 53%.
Employers also pointed to broader knock-on effects, noting that higher energy prices have driven up the cost of raw materials, supplies and logistics. Businesses in the hospitality, food and beverage, and retail sectors reported additional pressure from rising costs of temporary labour as the market adjusts to a more expensive operating environment.
Looking ahead, companies identified several forms of support that would be most helpful if energy prices remain elevated over the next year. These include measures to offset business costs through tax relief or financing assistance, cited by 83% of respondents, as well as energy cost relief and subsidies, highlighted by 77%. More than half, or 55%, also called for a delay in manpower policy changes that could further increase costs.
The results reflect broader concerns among employers about mounting cost pressures in an already challenging business climate. About 39% of respondents indicated a negative outlook for the next six to 12 months.
Beyond immediate cost concerns, SNEF noted that companies are increasingly worried about disruptions to global trade and business activity, with supply chains being reshaped and investment decisions becoming more cautious.
SNEF chief executive officer Hao Shuo said the federation welcomed the recently announced government support measures, including an enhanced corporate income tax rebate.
“As the global economic situation remains quite fluid, we hope that the government will consider the prevailing economic conditions when implementing the earlier announced foreign manpower policy changes,” he said.
Mr Hao also called for a tiered approach under the enhanced Progressive Wage Credit Scheme to better support employers who are increasing wages for lower-income workers.
