MOM: Majority of high earners in Singapore are employed by foreign-owned firms

SINGAPORE: According to the Ministry of Manpower’s (MoM) Labour Market Report for the second quarter of 2024, six in ten Singapore residents with a gross monthly income exceeding $12,500 are employed by foreign-owned firms.

Although only 20% of companies in Singapore are foreign-owned, they employ a considerable portion of top-income residents. In contrast, 80% of the firms are locally owned.

This disparity emphasizes the impact of foreign investments on Singapore’s economy, especially in sectors offering high-paying roles.

Despite the influence of foreign-owned companies on high-income employment, the report noted a general moderation in resident employment growth.

The ministry attributed this to Singapore’s high labour force participation rate and the gradual slowdown in resident workforce expansion.

Singapore’s total employment saw an increase of 11,300 jobs in Q2 2024, a notable jump from the 4,700 jobs added in the previous quarter.

This growth was primarily driven by a surge in non-resident employment, particularly in the construction and manufacturing sectors, which added 12,000 jobs after experiencing a decline in Q1.

However, resident employment experienced a slight decline of 600 jobs in Q2 2024. For the first half of the year, total employment increased by 16,000, with non-resident employment accounting for 11,200 of that growth, while resident employment increased by 4,900.

The ministry’s report possibly suggests that employment trends in Singapore are being shaped by shifts in non-resident labour, especially in specific sectors, while the pace of resident employment growth appears to be stabilizing.