SINGAPORE: Most employers in Singapore have yet to make direct changes to their workforce or workplace arrangements in response to rising energy prices, according to a snap poll conducted by the Singapore National Employers Federation (SNEF).

The survey, carried out between Apr 10 and 16, gathered responses from 210 companies across the manufacturing, services and construction sectors. Findings released on Monday (Apr 20) showed that 83% of employers have not introduced measures that would directly affect employees, suggesting that businesses are prioritising operational adjustments before turning to workforce-related actions.

Among the minority that have implemented changes, about two-thirds reported freezing hiring or postponing expansion plans. Around a quarter said they had reduced bonuses, allowances or other benefits.

Some firms have also taken steps such as cutting work hours, overtime or shifts, redeploying staff, introducing cross-training, or allowing headcount to decline through natural attrition.

Rising energy prices have had a widespread impact on business costs. Nearly all respondents — 96% — reported higher operating expenses, while 53% expressed concerns about increasing manpower costs. Of those experiencing higher operating costs, about two-thirds said these had risen by more than 10%, indicating moderate to significant increases.

Utilities and fuel were the most commonly affected cost components, each cited by 70% of respondents. This was followed by materials and supplies at 59%, and air and sea freight at 53%.

Employers also pointed to broader knock-on effects, noting that higher energy prices have driven up the cost of raw materials, supplies and logistics. Businesses in the hospitality, food and beverage, and retail sectors reported additional pressure from rising costs of temporary labour as the market adjusts to a more expensive operating environment.

Looking ahead, companies identified several forms of support that would be most helpful if energy prices remain elevated over the next year. These include measures to offset business costs through tax relief or financing assistance, cited by 83% of respondents, as well as energy cost relief and subsidies, highlighted by 77%. More than half, or 55%, also called for a delay in manpower policy changes that could further increase costs.

The results reflect broader concerns among employers about mounting cost pressures in an already challenging business climate. About 39% of respondents indicated a negative outlook for the next six to 12 months.

Beyond immediate cost concerns, SNEF noted that companies are increasingly worried about disruptions to global trade and business activity, with supply chains being reshaped and investment decisions becoming more cautious.

SNEF chief executive officer Hao Shuo said the federation welcomed the recently announced government support measures, including an enhanced corporate income tax rebate.

“As the global economic situation remains quite fluid, we hope that the government will consider the prevailing economic conditions when implementing the earlier announced foreign manpower policy changes,” he said.

Mr Hao also called for a tiered approach under the enhanced Progressive Wage Credit Scheme to better support employers who are increasing wages for lower-income workers.

This article (96% of Singapore companies polled face higher operating costs as energy prices rise) first appeared on The Independent Singapore News.

SINGAPORE: About one in three newly admitted lawyers in Singapore is considering leaving the profession within three years, raising fresh concerns about retention in a sector already grappling with rapid change.

Chief Justice Sundaresh Menon highlighted the issue on Monday (Apr 20) during his address at the High Court auditorium, where 321 new lawyers were welcomed to the Bar across three sessions held over two days.

Citing a survey conducted among the new entrants, he said a third indicated they were likely to leave legal practice within a few years. Among the main reasons cited were heavy workloads, unsupportive workplace environments and limited access to mentorship.

While acknowledging that there are multiple contributing factors, Chief Justice Menon pointed to the growing complexity of legal work as a key driver. He said the demands of the profession have intensified not only because of developments in the law itself but also due to the increasingly challenging environments in which lawyers operate.

He also drew attention to two major issues confronting the profession at a time of significant transition: the rapid rise of artificial intelligence (AI) and concerns over the long-term sustainability of legal practice. These pressures, he noted, are felt most acutely by junior lawyers.

The survey found that 92% of newly admitted lawyers are already using AI in their work. While the technology has improved efficiency, Chief Justice Menon warned that it could fundamentally alter traditional training pathways. Tasks such as legal research and drafting, once considered essential for building foundational skills, are increasingly being handled by machines.

He cautioned that if such work is no longer carried out by young lawyers, the profession must confront how best to ensure they still develop the critical thinking, discipline and judgment required for good lawyering.

Beyond training, AI is also expected to reshape the economics of legal services. Clients are likely to demand quicker turnaround times, lower costs, and greater transparency in pricing. At the same time, some work traditionally handled by law firms may shift to alternative service providers, potentially reducing both the volume and value of conventional legal work.

This, in turn, could weaken demand for junior lawyers, at least in the near term.

Chief Justice Menon stressed that these changes have far-reaching implications. They could influence whether talented individuals are drawn to the profession and whether they choose to remain in it. He added that the pressures lawyers face also affect their performance, mental well-being and the profession’s ability to uphold ethical standards.

Leadership within law firms and organisations will play a crucial role in addressing these challenges, particularly in shaping workplace culture and setting expectations.

In response, the legal sector has begun rolling out initiatives aimed at strengthening professional development, improving AI competency and promoting more sustainable work practices. Efforts are also underway to deepen understanding of AI tools and their limitations, ensuring that lawyers are able to critically assess their outputs.

The Singapore Academy of Law, for instance, has partnered with Microsoft to produce practical guides and organise training sessions focused on the use of AI in legal work.

However, Chief Justice Menon emphasised that technical skills alone will not be sufficient. He underscored the importance of qualities that cannot be replicated by technology, such as ethical reasoning, sound judgment, empathy and the courage to give clients honest advice.

Ultimately, he said, the challenge is not only to equip lawyers with the tools to work alongside AI, but also to ensure the profession continues to prioritise distinctly human attributes like integrity, responsibility and discernment.

Efforts are also being directed at safeguarding the long-term health of the profession through training initiatives and career guidance programmes aimed at supporting lawyers throughout their careers.

This article (92% of new Singapore lawyers are already using Al in their work: Chief Justice Menon) first appeared on The Independent Singapore News.

SINGAPORE: The Singapore dollar could continue to hold an edge over other Southeast Asian currencies, bolstered by its increasingly close relationship with China’s offshore yuan and supportive monetary policy settings.

An analysis by Bloomberg indicates that the Singapore dollar and the yuan have moved more closely together than any other pair of Asian currencies since the onset of the Middle East conflict. At the same time, the local currency has maintained a strong inverse relationship with the US dollar, a dynamic that has worked in its favour as the greenback weakens.

This trend is partly rooted in Singapore’s unique monetary framework. Unlike most central banks that rely on interest rates, the Monetary Authority of Singapore (MAS) manages policy through the exchange rate, guiding the currency against a basket of trading partners within an undisclosed band.

The yuan plays a significant role in this basket, with Bloomberg Intelligence estimating its weighting at 11.9%, the second largest component.

Khoon Goh, head of Asia research at ANZ, told Bloomberg that the yuan’s influence on the Singapore dollar stems from its substantial weight in the nominal effective exchange rate basket. He added that the MAS’s recent policy tightening, particularly a steeper appreciation path for the currency, could support further gains. Singapore’s reputation as a safe haven is also expected to underpin demand.

Although the Singapore dollar has slipped by about 0.4% since the Iran conflict began, it has still outperformed regional counterparts such as the Malaysian ringgit and the Philippine peso.

Recent data highlights the strengthening link between the Singapore dollar and the yuan. The 30-day correlation between the two has climbed to 0.90, up from roughly 0.6 at the end of February. Meanwhile, its correlation with the Bloomberg Dollar Spot Index stands at minus 0.94, the most negative among emerging Asian currencies.

With the dollar index already down nearly 2% this month amid hopes of easing geopolitical tensions, further weakness in the US currency could provide additional support to the Singapore dollar.

Maybank strategists, including Saktiandi Supaat, said in a note that a softer greenback and the possibility of further MAS tightening in July may lift Singapore’s nominal effective exchange rate. The bank expects the local currency to strengthen to 1.26 against the US dollar by the end of the year.

This article (Singapore dollar may outperform peers as yuan link deepens) first appeared on The Independent Singapore News.