Retrenchments up in 2nd quarter of 2024, total employment grew by 11,300

The number of retrenchments in the second quarter of 2024 was 3,270.

This was higher than the number of retrenchments in the first quarter of 2024, 3030, but lower than the number in the first quarter of 2023, 3,820.

In comparison, total employment grew by 11,300 in the second quarter of 2024, more than double the increase of 4,700 in the first quarter of 2024.

Moreover, in the second quarter of 2024, more than half of all retrenched residents were able to secure jobs within six months of being retrenched, Deputy Prime Minister (DPM) and Minister for Trade and Industry Gan Kim Yong said in a written reply on Oct. 14, 2024.

The reply was made to a query by Yio Chu Kang SMC Member of Parliament (MP) Yip Hon Weng on recent retrenchment operations by multinational companies (MNCs).

Household appliances company Dyson recently retrenched workers in Singapore on Oct. 1.

The Ministry of Manpower (MOM) said in a statement on Oct. 12 that Dyson had notified the ministry within five working days of notifying the affected employees, which was "on time".

The United Workers of Electronics & Electrical Industries (UWEEI) had previously told Mothership it was "disappointed" as it was only notified a day before the company informed affected employees.

Samsung also started a retrenchment exercise on Oct. 1, Bloomberg reported.

Key factors behind retrenchments

Companies, including MNCs, may choose to close or reduce their presence in Singapore for various reasons, DPM Gan explained.

These include changes in market dynamics leading to poor performance by the firm or shifts in the company’s global strategy leading to changes in their operating structure.

"In such situations, the Government works closely with the companies and unions to assist the retrenched workers with skills upgrading and job matching," DPM Gan said.

Attractive location for investments

DPM Gan said that Singapore remains an attractive location for foreign investments.

He highlighted how the Singapore Economic Development Board (EDB) attracted S$5.4 billion in Fixed Asset Investment (FAI) commitments in the first half of 2024.

EDB is also on track to meet its medium- to long-term investment commitment goal of S$8 to S$10 billion in FAI this year.

FAI commitments refer to incremental capital investment in facilities, equipment, and machinery.

DPM Gan also referred to plans by cloud service provider Amazon Web Services to invest an additional S$12 billion into existing cloud infrastructure in Singapore over the next four years for cloud and Artificial Intelligence projects.

Pharmaceutical company AstraZeneca has also planned a S$2 billion manufacturing facility for antibody-drug conjugates, DPM Gan noted.

"These investments will translate into good jobs for Singaporeans," DPM Gan wrote.

Some 60 per cent of locals earning a gross monthly income of above S$12,500 are employed by foreign-owned firms.

Foreign-owned firms make up around 20 per cent of firms in Singapore and provide jobs for nearly one-third of employed residents, MOM said in a press release on Sep. 17, 2024.

Top photo by Canva.