$10k Starting Pay: Are We Too Expensive or Do We Lack Talents in Singapore?

If you’ve been scrolling social media over the past week, you would’ve seen a viral video featuring the salary expectations of students from the National University of Singapore (NUS).

For those who’re unfamiliar, the NUS students featured expected a starting salary of $5,000 to $10,000,

And that, of course, sent netizens into a heated debate over the seemingly high expectations.

For context, the latest Graduate Employment Survey 2021 found that the highest gross monthly salary (75th percentile) stood at $8,225 and belonged to those who graduated with a double degree in Business and Computer Engineering/Computing from the Nanyang Technological University (NTU). The lowest (25th percentile) was $2,850, for those who majored in Art, Design & Media from NTU.

With such figures and a lack of working experience, it’s no wonder why some netizens have pointed out that the expectation is unrealistic.

But for some, it’s possible as there are jobs that are known to be extremely well-paid such as Investment Bankers.

That said, we are also in the season of layoffs right now. In 2022, there were high-profile layoffs and probably a lot more under the radar.

From Shopee, Meta, Google, and Microsoft to food delivery company, Deliveroo, and if you’ve noticed, Linkedin was flooded with layoff posts for a good period of time.

Covered in student debts and an expected higher cost of living in the near future, it is unsurprising that these students are looking at a higher starting salary.

This made me think: how can we ensure we continually stay competitive in an increasingly demanding job economy besides upskilling and making sure people know you on LinkedIn?

Let’s take some time to reflect.

The Current State of Talents in Singapore

When we talk about talents, we have to include the foreign workforce in Singapore.

It’s difficult to pinpoint the exact number of Singaporean talents versus foreign talents in Singapore, as the definition of “talent” can vary widely.

But, after some research, these are what I’ve found:

If you noticed, there are lesser EP and S Pass holders over the years and more Work Permit holders over the years.

As most of us are already aware, there are still some industries that are highly reliant on foreign labour.

Singapore has a well-educated population and a strong emphasis on education and skill development, which has helped to cultivate a large and diverse pool of local talent.

However, at the same time, the country’s open economy and welcoming immigration policies have attracted a significant number of talented individuals from around the world.

Overall, Singapore’s workforce is made up of a combination of both Singaporean and foreign talent, and the country benefits from this diversity of skills and perspectives. The government and private sector are continuously investing in talent development and attracting top talent from around the world, to ensure a strong and dynamic workforce for the future.

So, the next question to ask is…

Are Singaporeans Too Expensive?

There’s a reason why the video didn’t sit well with some netizens.

We’ve always heard about income disparity and most recently, how it might be hard to move up the social ladder in Singapore.

But, we should be careful here as we don’t want to generalise that Singaporeans are more expensive, simply because we know that the cost of labour is determined by a variety of factors and cannot be determined based solely on nationality.

It is our skills, experiences, and market demand.

Singaporean workers may command higher salaries than foreign labour due to their education, training, and experience. However, foreign labour may be willing to accept lower wages due to differences in their cost of living, exchange rates, and other factors.

And since this is so, why aren’t Singaporeans taking up certain jobs?

Are We Holding Ourselves to High Regard?

There are several factors I wish to dive into.

High Cost of Living & High Cost For Businesses

Singapore is one of the most expensive cities in the world, and this puts a lot of pressure on people’s finances.

This, in turn, can lead to high expectations for salaries to cover the costs of living and inflation.

For the realists amongst us, getting a good education and securing a stable job are more direct ways to grow your wealth; this is our culture and deeply ingrained in us (🐯👩‍👧).

By extension, it’s expensive to operate a business in Singapore too.

While the cost of operating a business in Singapore can vary greatly depending on a number of factors, such as the size and type of the business, its location, and the industry in which it operates, in general, Singapore is considered expensive compared to neighbouring countries due to its high cost of living, high business and tax costs, and strict regulations.

A stronger Singaporean currency also makes paying employees locally more expensive.

We read how Shopee’s parent company, Sea, expanded its investments in Malaysia which will create 2,000 jobs.

Besides setting up a three-storey green facility to host its cloud computing project, the company also intends to construct a two-storey mega warehouse – an integrated hi-tech logistics park equipped with cloud infrastructure spanning 130,000 sqm there.

Before we forget, Sea was reportedly seeking a replacement tenant for its 200,000 sq ft office square in Singapore late last year. According to The Business Times, real estate experts believe that Sea’s relinquishment of office space is due to its aggressive strategy, excessive expenses, and rapid hiring over the past three years in order to increase its market presence.

It’s a good thing that companies are expanding their businesses, and this is something worth thinking about – are our costs of operations too high now?

But that said, there are also advantages to operating a business in Singapore as we have well-developed infrastructure and access to a large and educated workforce.

Geographically, we are also in a strategic location that provides easy access to the wider Asia-Pacific region, making us an attractive destination for companies looking to expand their business in the region, and that’s why Singapore ranks second in the world for ‘ease of doing business’, according to the World Bank’s Doing Business 2020 report.

Financial Security, Social Status & Pressure to Conform

With an uncertain economic climate and job market, clinching a high salary to put enough food on the table becomes even more important.

In a highly-competitive society, many may feel compelled or pressured to keep up with their peers and this can lead to expectations for high salaries to maintain a certain standard of living and social status.

We’re often told a good-paying 9-to-5 job constitutes sitting in a well-air-conditioned office, drinking expensive coffee, eating good food and looking at their screens.

But, do you know that some blue-collar jobs actually earn way more than an average office job?

Prime mover drivers and crane operators – both specialist roles – do not require a bachelor’s degree and yet, they are earning around $4,000 to $7,000 per month – with the upper limit being way higher than $5,070, the median income of Singaporeans!

Of course, these are specialised roles, but they say something, isn’t it?

It’s undeniable that there is a certain expectation in Singapore for people to conform to certain norms and lifestyles, such as owning a car, going on holidays, eating out regularly, and these can put pressure on people to earn high salaries to maintain this lifestyle.

Similarly, people expect to be rewarded for their hard work and dedication with high salaries. They believe that their efforts should be reflected in their income.

Education Costs

There are far too many talks on how Singapore is overemphasising paper qualifications and let’s not go into that.

Education is highly valued in Singapore, and many people expect to earn enough to cover the costs of their children’s education, which can include tuition fees, textbooks, transportation, and other expenses.

Don’t get me wrong. I’m not saying a university degree is not worth it (been there and done that by yours truly).

Rather, because universities are so expensive, it’s human nature to hope for a decent (or even better) income after we struggled to pull through the three to four years of intense academic rigour. Also, the experiences we got as students were invaluable.

If you’ve put in so much effort, you want to be paid enough.

Saving For The Future

Putting aside the high cost of living, most people want to earn enough to build a nest egg for the future – Central Provident Fund (CPF) – and this is even part of our national agenda.

Saving for the future includes saving for retirement, buying a home, and other long-term financial goals.

Being able to put aside 20% of your salary for savings might even be a privilege these days.

Read more:

• I Love Singapore but I Might Not Want To Retire Here: Here’s Why
• How Much Does It Cost To Be The Last Sandwich Generation?
• Inflation Rate By Country (2022): How Does Singapore Fare?

Afterthoughts

With all that said, I personally do not think that we have a lack of local talent.

Instead, we need to manage our expectations. Expectations can be highly subjective and when not met, we risk job hopping becoming a permanent trend.

It’s also good practice to benchmark your expectations against similar roles, be able to understand where your strengths and weaknesses lie and acquire the skills to negotiate for areas where you’re lacking.

A high-paying job is great, but it’s also not without sacrifices.

Related Articles:

• The Ultimate Civil Service Salary, Bonus and Benefits Guide (2022)
• Your Job Does Not Define You: Life Lessons From My Mother, a Domestic Cleaner
• Nurse Salary Guide (2022): Are Nurses in Singapore Paid Enough?
• Teacher Salary Singapore Guide: How Much Do Teachers Earn in Singapore?
• Latest Fresh Poly Graduate Salary Guide (2023): Here’s How Much Poly Graduates Are Earning