A new report from Robert Walters, a professional recruitment firm, suggests that competition for skilled workers in Singapore will increase in 2016. This demand will likely lead to more attempts to recruit Singaporeans working abroad. Hiring managers believe that these experienced professionals could help alleviate the tight labor market, benefiting both companies and the “Fair Consideration Framework,” which promotes local hiring.

Returning Singaporeans are desirable candidates because they often have international experience and a broader range of skills compared to their counterparts who haven’t worked overseas. Almost a quarter (23%) believe they can offer a global perspective combined with knowledge of the Singaporean market. Robert Walters highlights their multilingual abilities and capacity for cross-cultural collaboration.

The demand for this talent pool is particularly strong in fields like digital technology, cybersecurity, e-commerce, and corporate governance. However, companies seeking these specialized professionals may face challenges due to the limited number of candidates and a gap in necessary skills.

Ivy Low, International Candidate Manager at Robert Walters, mentioned increased activity in the Balik Kampung program (meaning “return to where you grew up”). While the initiative officially began recruitment efforts in June 2015, awareness campaigns started earlier. The program initially had a database of 2,500 individuals but expanded by reaching out to inactive members globally and asking if they were interested in returning to Singapore.

Many contacted by Robert Walters were either ready to return immediately or planning to do so in a few years. Low explained that a significant portion, primarily couples in their 30s and 40s with parents in their 60s and 70s, expressed a desire to return due to family reasons like caring for aging parents or providing for their children’s education. They view Singapore as home and wish to return.

Employers, especially those who have tried similar recruitment strategies, have shown great interest. Low pointed out that Robert Walters’ dedicated resources for the program give them an advantage.

Low emphasized the importance of finding candidates genuinely interested in returning, while acknowledging that not every returning Singaporean will find a suitable position immediately. Timing, she believes, is crucial.

The report suggests that salaries in 2016 are expected to remain largely unchanged. However, candidates with in-demand skills could see an average salary increase of 10-20% when changing jobs.

Toby Fowlston, Managing Director of Robert Walters Southeast Asia, stated that Singapore remains a vital economic center in Southeast Asia and predicts a dynamic recruitment market to match. He believes that with companies competing for skilled Singaporean professionals, candidates will have the upper hand in 2016. To attract and retain top talent, companies need to go beyond offering attractive salaries and focus on aspects like interview processes and employee development programs to strengthen their employer brand.

However, three out of four overseas Singaporeans prefer securing a job before returning. Fowlston added that certain benefits are considered highly desirable by this group. For instance, one in two returning Singaporeans expect a 15% increase over their current salary. Unfortunately, only one in five companies are willing to offer such an increment. Fowlston acknowledged the issue of wage inflation in Singapore.

Flexible work arrangements are another sought-after benefit, though many find themselves working longer hours than in a standard setup and eventually switch back. Other deciding factors include clear career progression opportunities, flexible hours, and relocation assistance covering housing and transport.

Fowlston reported that nine out of ten employers are open to hiring returning Singaporeans, with 46% having already done so.

Additional highlights for Singapore in 2016 include:

• Openings for secretaries capable of supporting entire departments, as well as top-tier executive secretaries and office managers who can independently manage an office.
• Increased hiring within private legal practices due to Singapore’s position as an arbitration hub. Lawyers with proven track records and familiarity with the Singaporean market will be in demand for in-house legal teams.
• Within accounting, employers offering training and development, flexible work hours, and overseas work opportunities are more likely to retain professionals. Specialists in niche areas such as treasury, tax, and internal audit are in high demand due to a limited talent pool.
• Ongoing offshoring and cost management measures within financial services, particularly investment banking, will contribute to market uncertainty. However, professionals in cash management, trade finance sales, and structured trade will see job opportunities.
• Strong recruitment demand within technology, especially for specialists in data protection and cybersecurity as companies protect themselves from online threats. This demand is driving salaries up by as much as 20% for job seekers.
• Changing perceptions about contract work have led to a pool of highly qualified professionals becoming “career contractors” in search of a better work-life balance.
• Despite the trend toward a business-partnering HR function, continued restructuring will result in leaner HR operations. Therefore, HR professionals will still be expected to be more hands-on, regardless of seniority.

The recruitment firm stated that the banking sector faced challenges in 2015, including cost-cutting measures and increased offshoring. While economic uncertainty related to the slowdown in China made financial companies hesitant to expand their permanent workforce, the contract market experienced growth.

IT professionals, particularly those specializing in cybersecurity and e-commerce, were highly sought after in 2015.

The company advises employers to clearly define their role requirements, highlight career opportunities, and provide a clear timeline for the interview process to attract the best candidates. Their Salary Survey for 2016 emphasizes the importance of aligning hiring teams on expectations, avoiding mixed messages to candidates, and establishing a clear salary budget early in the recruitment process.

Recruitment in Malaysia is expected to remain cautious in the first half of 2016 due to the weak ringgit and falling crude oil prices. Hiring is only anticipated for replacement positions or within critical business units across various sectors.

With the slowdown in recruitment, employers are focusing on upskilling their current workforce. This strategic move is expected to aid companies in retaining their top talent in anticipation of economic recovery. Hiring is predicted to increase in the latter half of 2016 as the Malaysian economy stabilizes.

Published data indicates that qualified job seekers with in-demand skills, such as IT and corporate governance, can expect an average salary increase of 20-25% in 2016.

Sally Raj, Managing Director of Robert Walters Malaysia, commented that during times of economic uncertainty, companies should recognize the long-term benefits of investing in their employees. She believes that employee retention is crucial, especially as Malaysian professionals are highly motivated by opportunities for training and development, as well as leadership opportunities. Despite the general slowdown, growth is still projected in IT, corporate governance, and Islamic banking, all of which are driving the recruitment of highly skilled specialists.

Other highlights for Malaysia in 2016 include:

• Demand for accounting and finance professionals experienced in project management and shared services business environments as more multinational corporations relocate functions to Malaysia.
• Malaysia, a major player in the global Islamic banking industry, will see more opportunities for relevant professionals, particularly in Islamic asset management.
• As the technology sector experiences rapid growth, more firms are expected to utilize digital channels to increase revenue. This will lead to an increase in positions for IT specialists skilled in big data and e-commerce.
• Penang has been identified as a hub for semiconductor and electrical and electronics (E&E) manufacturing, attracting more foreign direct investment to the state.

Robert Walters specializes in placing highly qualified professionals in permanent, contract, and temporary positions at all seniority levels. In Singapore, the company recruits across various sectors, including accounting, banking, business support, compliance, financial services, human resources, legal, IT, risk, sales, supply chain, marketing, and procurement. The Malaysian branch focuses on accountancy and finance, banking, business support, compliance, financial services, human resources, legal, IT, sales, supply chain, marketing, and procurement.