Singapore’s IT sector is expected to experience high demand for skilled professionals and contract workers in 2018, particularly in fintech, healthcare, and technology.

Specialized skills will be highly sought after in 2018 across accounting and finance, human resources, sales and marketing, and technology sectors.

According to the 2018 Salary Survey by Robert Walters, a professional recruitment firm, the economic outlook for the coming year is positive. The survey anticipates that continued digitalization and market expansion in Southeast Asia will fuel salary growth. Candidates with robust technical skills, particularly in IT, and international experience are expected to be in high demand.

The overall job market in Southeast Asia remained active throughout 2017, largely driven by new companies entering the market and existing businesses expanding. A key priority across most markets was digitalization, influenced by a growing younger population and increased consumer spending.

Toby Fowlston, Managing Director, Southeast Asia, at Robert Walters, highlighted the impact of digitalization on businesses, stating, “The digitalization trend that is sweeping the region has spurred many businesses to create online or mobile platforms as companies seek to enhance their competitiveness and increase market share with the consumers.” This has resulted in high demand for professionals with digital expertise in marketing and IT, particularly those with skills in back-office digital infrastructure and niche technologies.

The demand for IT professionals extends to areas like cloud computing, cybersecurity, and big data, which are expected to remain key growth areas in 2018.

The focus on business transformation has also increased demand for human resource (HR) professionals with experience in change management, especially those with a proven track record in cultural transformation.

However, talent acquisition and retention pose challenges due to talent shortages and high staff turnover rates. Hiring managers are advised to simplify and streamline their recruitment processes for timely hires, and be open to hiring candidates with learning potential rather than solely focusing on technical skills.

Despite an economic slowdown in the previous year, Singapore remained a desirable location for companies establishing local and regional hubs. This led to significant hiring activity in several growing sectors, supported by changing consumer behavior and government investment in the local business ecosystem.

The government’s push to enhance technology infrastructure and establish a Smart Nation is expected to drive businesses to further improve digital processes, creating opportunities for professionals with both traditional and new technology skills. Key sectors driving this digital transformation include e-commerce, insurance, and logistics.

Mirroring this year’s trend, the IT job market will remain active in 2018, with all sectors investing heavily in modernizing their customer-facing e-channels. Sales and marketing professionals with specialized skills in areas such as commercial excellence, digital marketing, e-commerce, and those who are up-to-date with digital trends and possess strong analytical skills, are predicted to be in high demand, particularly in the fast-moving consumer goods (FMCG), retail, luxury, and healthcare industries.

Sales and marketing professionals can anticipate an average salary increase of 10-15%, similar to the increments experienced in 2016 and 2017.

The HR sector is expected to remain client-driven in 2018. The demand for business-savvy HR experts with experience in change management will persist as restructuring continues. With firms increasingly recognizing the value of employee training, there will be a demand for senior regional learning and development professionals, especially those skilled in leadership development and organizational design. In Singapore, candidates switching jobs can expect salary increments between 10-15% in 2018.

While minimal salary increments are expected in Singapore in 2018 due to flat inflation rates, Robert Walters forecasts increments between 5% and 15%. Candidates with skills in digital marketing and cybersecurity, especially those with local market knowledge, are likely to see higher increments during annual salary reviews.

Key highlights from the 2018 Salary Survey include:

• The accounting and finance sector will see increased consolidation, leading to high demand for candidates with broad skillsets, particularly in financial reporting, systems implementation, FP&A, treasury, tax compliance, advisory, transfer pricing, and FP&A business partnering. Professionals who can act as business partners and provide financial insights will be highly sought after. Robert Walters predicts salary increases of 10-15% for accounting and finance professionals changing jobs.
• In the IT sector, business/consumer-facing professionals with deep learning and machine learning skills will be in high demand. UX/UI professionals, particularly front-end developers with a strong design sense, were sought after in 2017 and will continue to be in demand in 2018 due to the importance of attractive interfaces in user acquisition. Cloud architects are also highly sought after by companies.
• With regulatory requirements continuing to be a primary concern in the banking sector and companies increasing digitalization efforts to secure their systems, cybersecurity professionals will remain in high demand. However, hiring managers will face challenges finding techno-commercial digital professionals, local developers, and solution architects due to the limited talent pool.
• Robert Walters predicts a 3-5% salary increase for banking and financial services professionals changing jobs. The firm notes a trend of companies limiting new hires and increasing offshoring to lower-cost countries like the Philippines. With improving infrastructure in other countries, Thailand is emerging as a regional hub and a potential gateway to frontier markets. Banks are also strengthening their AML/CFT, KYC, and CDD functions.
• The HR sector is expected to experience high demand for strategic talent acquisition leaders capable of leading regional teams, designing recruitment strategies, and developing talent management initiatives. Hiring managers are advised to streamline recruitment processes for timely hires and consider candidates with potential and learning ability over purely technical skills.
• Other in-demand skills include multitasking, adaptability, and proficiency in multiple ASEAN languages.
• Key industries driving digital transformation in 2018 include:
  • E-commerce
  • Insurance
  • Logistics
• In-demand qualities for IT professionals in the banking and financial services sectors include:
  • Workspace transformation
  • Cloud infrastructure and virtualization
  • Project and program management
  • Business analytics with strong regulatory understanding

Contract work is emerging as a viable option to address skills gaps across various sectors, with candidates becoming more open to contract opportunities to gain diverse corporate experience.

While this year saw an increase in employers hiring mid-level professionals for interim positions, especially for projects requiring specialized skills, there was also a rise in short-term contract legal roles due to a limited talent pool and budget constraints. This trend is expected to continue in 2018 as employers recognize the value of contractors, particularly legal professionals in fintech, healthcare, and technology. Companies are seeking professionals with experience in ISDA negotiations and proficiency in multiple ASEAN languages. Robert Walters reports that the legal sector has experienced average year-on-year salary increments of 3-7%.

Robert Walters launched the Balik Kampung campaign in 2015 to attract and connect with overseas Singaporeans interested in returning to work in Singapore. The company currently has access to a pool of 3,000 untapped overseas candidates and believes that Balik Kampung candidates can contribute to a long-term local permanent or contract talent pipeline, especially as the demand for local talent continues to rise.

Robert Walters has been operating in Southeast Asia for nearly 20 years and has offices in Singapore, Malaysia, Indonesia, Thailand, Vietnam, and the Philippines. Unlike some recruitment consultancies where consultants handle hiring across all disciplines for a single client, Robert Walters consultants specialize in one core discipline.