Disclaimer: Unless otherwise stated, any opinions expressed below belong solely to the author. Data sourced from the Singapore Department of Statistics and the Economic Development Board.
2026 is upon us already, so it makes sense to take a look at what the coming year is promising to bring to the Singaporean economy, including jobs and salaries.
Between Sept and Oct, EDB and the Singapore Department of Statistics conducted their quarterly surveys of business expectations in the manufacturing and services sectors, respectively, asking them, i.a., about their predictions for the period until Mar 2026.
Here are their findings.
Dark clouds over factories?
With 23% of local manufacturing companies reporting optimistic business outlook compared to 15% expressing pessimism (with the rest expecting business as usual), the net weighted average for the sector is a positive 8%.
However, things are a little different when you look at specific industries.
Image Credit: Singapore Economic Development Board
While four out of the six broad categories expect growth, there seems to be a significant slowdown in precision engineering, particularly in Machinery & Systems.
What’s more, even Electronics, primarily driven by the surge in demand for semiconductors, and businesses in Computer Peripherals & Data Storage are all bracing for headwinds. In fact, not a single company there expects the coming months to be better.
It’s a similar story with Transport Engineering, whose optimism is driven by the strong Aerospace sector, far outweighing the negative outlook of companies in Land transportation.
Source: Singapore Economic Development Board
The turbulent situation in some of these industries is, of course, caused by a blend of uncertainty caused by tariffs and the AI boom, which is both a boon for some and a risk, in case the bubble rapidly deflates, leaving technology companies scrambling for something else to do instead.
Sunny skies for most services
Fortunately, the situation appears to be better in the services sector, which accounts for 3/4 of all resident employment in Singapore.
Image Credit: Singapore Department of Statistics
Following the scare of recession after Trump’s tariff policy shook the world, the sentiments have rebounded to similar levels as before the new US president took office.
Gloomy scenarios have not materialised, and the Singapore economy actually posted a stellar GDP growth this year, rising by over 4% (with final data coming early next year).
As a result, with the exception of two industries, all others are expecting growth in early 2026, chiefly in trade, tourism, and recreation, as well as IT.
Source: Singapore Department of Statistics
The two outliers are Real Estate and Transportation & Storage. The former is experiencing both domestic and external pressures, as the overheated local market has seen a government clampdown in recent years while grappling with the very same uncertainty the new US administration has caused elsewhere, dampening investors’ moods.
As local authorities are trying to rein in the price inflation and discourage speculative purchases, trying to protect both the public and private property markets, there’s simply less business for companies in the property sector, with no end to restrictions in sight.
Meanwhile, businesses in logistics—especially in water transportation—are facing tougher competition amid an oversupply of vessels, which is affecting freight rates.
The brief pandemic bonanza, when many experienced a surge in demand and profits, appears to be over, and the industry is now trying to figure out where the new normal lies.
Even if the economy as a whole keeps growing in 2026, these issues may impact both employment and salaries in the affected sectors. And while on average Singaporeans can hope for a pay bump of between 3 to 6%, bringing the national median to S$6000 per month, your individual situation may differ greatly depending on what you do.
Read other articles we’ve written on Singaporean businesses here.
Featured Image Credit: peerapat/ depositphotos
