More than 90% of Singapore companies are facing higher costs as Middle East tensions push up energy prices, according to a survey by the Singapore National Employers Federation, or SNEF. Many companies cited rising utility bills and fuel costs. Among firms that have taken steps to cope, hiring freezes or delays in expansion plans were common.
SNEF surveyed companies across a wide range of industries and received responses from 210 firms. Information and communications, finance, insurance, professional services, education and social services made up the largest share at 37%. Manufacturing accounted for 32%, hospitality, food and wholesale 15%, and transport and warehousing 10%.
A total of 96% said they were facing higher costs due to a surge in energy prices linked to worsening conditions in the Middle East. The most common response was that business costs rose 11% to 25% (41%), followed by 1% to 10% (36%) and more than 25% (19%).
By category, utilities and fuel were cited most often, at 70% each. Raw materials and consumables were named by 59%, and air and sea freight costs by 53%.
Asked whether they were reviewing staffing and workplace deployment because of the energy price spike, 83% said no. SNEF said, “Many companies are exploring whether operational adjustments are possible before taking measures that directly affect employees.”
Among those that said yes, the most common actions (multiple responses allowed) were hiring freezes or postponing plans to add staff, at 67%. Redeployment and cross-training, and headcount reductions through attrition, were each cited by 33%. Bonus and allowance cuts were reported by 25%, and reduced working hours, including overtime, by 19%.
As support measures to address rising costs (multiple responses allowed), companies most often called for tax-related support such as tax cuts (83%), subsidies for energy costs (77%), and delaying the implementation of employment policies related to manpower (55%).
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.