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Sep 20, 2007

FORECAST FOR 2008

Salaries to rise 3.8% in S'pore: Report

SINGAPOREANS can expect a pay rise, in real terms, of 3.8 per cent next year - less than India's 7.9 per cent but well ahead of Hong Kong's 0.4 per cent.

A new report by consulting group Hay Group says salaries across the Asia-Pacific region are expected to keep rising next year.

Hay's annual Asia Compensation Report, which was published yesterday, calculates real wage rises by taking account of inflation.

In Singapore's case, it arrived at 3.8 per cent by subtracting projected inflation here of 1.1 per cent next year from projected salary increments of 4.9 per cent.

Of the 13 markets surveyed, the Republic was in joint-sixth position with South Korea. India ranked first, followed by China with 6.2 per cent, Indonesia 5.6 per cent, the Philippines 5.2 per cent, and Thailand 4.7 per cent.

After Singapore and South Korea came Vietnam with 3.4 per cent, Malaysia 3.3 per cent, Taiwan 3.1 per cent, Australia 2.6 per cent and New Zealand 1.7 per cent. Hong Kong ranked last.

Hay's managing director for reward information services, Mr Roland Ruiz, said Singapore's real pay increase for next year is 'very healthy due to a positive business outlook and low inflation'.

He also recommended that companies 'link pay firmly to performance'.

CHUA HIAN HOU