Photo of MAS from Reuters Edgar Su

According to the latest economic review report by the Monetary Authority of Singapore (MAS), the growth of salaries in Singapore is significantly lower than productivity growth in 2017. Resident (including foreigners on permanent residency) wage growth declined to 2.5% for the first half, lower than the 2.8% productivity growth for the same period.

MAS commented that the salary growth rate is lower than the 10-year-average of 3.7%, and that wages will continue to be depressed next year:

“Wage pressures are thus unlikely to build up rapidly, even as the improvement in productivity growth continues into next year.”

While the Prime Minister’s Office-controlled MAS deliberately omitted job vacancy rate, the MAS commented that job vacancy rate “edged up”. The last known statistic of job vacancy rate is 1.3 jobseeker for every job available.

MAS also omitted comments on the unemployment rate which is at it’s 8-year-low, and painted a rosy picture claiming there is a “turning point” and unlikely to worsen:

“The labour market may have reached its turning point… Nevertheless, the previously accumulated slack in the labour market will “take time” to be absorbed, and the unemployment rate will likely remain close to current levels in the near term.”