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Brief: Real Wage Growth For Singaporeans Decreases Due To Slowing Economy
What Is The News About:
- Singaporeans were expecting a slowing economy for Singapore since the year 2016. The Singapore economy is mainly affected by rising global uncertainties, increasing interest rates and also uninspiring business and consumer sentiment.
- With businesses not performing well, we see real wage growth decreasing from 5.4% in the year 2015 to 3.6%.
- Year 2016 is the year that sees the most number of companies ending their financial year in RED. The highest in the past 10 years.
What Does It Mean For Singaporeans:
- With Flexible wage system in place, companies can quickly cope with downturns by adjusting wages accordingly to the profitability of the company. This is a system to help keep jobs during downtime, and also to motivate workers to work harder for the company at all times.
- In slowing economy as such, it is important for Singaporeans to understand and exercise flexibility when it comes to wage. In fact, 13.1% of the surveyed Singaporeans took a pay cut. Having a job and constant income beats having none.
- The Singapore’s economy grew only 2% last year, and it is uncertain where Singapore’s economy might be heading this year. Singaporeans may want to prepare for the unexpected by saving up for rainy days. A healthy amount of rainy day fund will be one that can sustain one for 6 months at least.
- With companies letting go of 19,170 workers in 2016, an increase from 15,580 in 2015, the importance of saving up for an emergency fund as soon as possible should not be overlooked.
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