SINGAPORE: Concerns are mounting that hiring in Singapore – especially of fresh graduates – may slow as investors and companies delay investment decisions amid ongoing uncertainty over US President Donald Trump’s fluctuating tariff policies.
However, Singapore’s reputation as a trusted financial hub will enable it to continue attracting global investments, talent and technologies, while a new task force to prepare companies and workers for volatility has positioned the Republic well to navigate the uncertainty, said National Development Minister Chee Hong Tat on June 4.
Speaking at Nomura’s annual investor forum at the Ritz-Carlton, Chee, who is also deputy chairman of the Monetary Authority of Singapore (MAS), said that while it is understandable for companies to adopt a wait-and-see approach in the current environment, this could affect jobs if adopted on a broader scale.
“We are worried,” Chee said, noting that a persistent slowdown could impact job opportunities for workers as well as students who are about to graduate.
Access to financing is also an emerging concern.
“There are companies which actually have viable businesses, products and services but, because of the uncertainty, may face more difficulties in drawing financing,” he said.
Additionally, Chee was responding to a question from Nomura Asia-Pacific chief executive Nags Sankaranarayanan on the impact of the US-China trade war on Singapore, and the government’s assessment of the situation.
He noted that Singapore’s overall factory activity is now at its lowest levels in months, reflecting the concerns businesses have with regard to the more uncertain environment.
While there is still a need to provide support in weathering the current volatility, particularly in areas like financing and hiring, that alone is not enough, Chee said.
There is also a need for companies and workers to look ahead and be ready for a landscape with new challenges and opportunities.
The Singapore Economic Resilience Taskforce, announced in April, was set up for this purpose.
“We have a team that’s looking at how to help companies and workers, how to provide some interventions on top of what we have already announced in the budget earlier this year,” Chee said.
The task force is also helping companies adapt to a shifting landscape by identifying emerging opportunities and potential challenges, as well as equipping workers with the skills required to stay relevant, he added.
Meanwhile, MAS has been consistently reviewing Singapore’s rules and processes to identify the barriers to business, and improve the Republic’s attractiveness to businesses and investors.
“We have new services, new business models, new requirements, and it’s important for us to be able to keep up with these new changes and in doing so, improve our efficiency and reduce business costs,” Chee said. — The Straits Times/ANN
