Earnings up in Singapore, but fewer companies raising wages

Only two in 10 companies plan to increase salaries.

The average monthly earnings in Singapore rose 5.8% QoQ in Q1 2024, reversing the 2.5% QoQ drop in Q4 2023.

Average monthly earnings increased despite fewer companies planning to raise wages (26.1% vs 32.6% in Q4).

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Nomura said the increasing average earnings of Singaporean workers is "consistent with a robust economic recovery."

Whilst fewer companies plan to raise wages, more plan to hire employees, which Nomura says hints at sustained wage pressure.

"Still-rising labour costs and the improving growth outlook further support our long-held view that underlying inflation pressures will likely persist and that core inflation will remain sticky in the coming months," Nomura said.