Singapore’s bank workers may see more job losses amid recession, regulator says
- There’ll be fewer jobs on offer while the number of retrenchments is likely to rise in the second half, says the Monetary Authority of Singapore
- Supporting the local workforce in the financial sector during the crisis is a priority for the central bank, an MAS official said
Banks, insurers and other financial institutions held up well during the first six months when the sector created about 1,500 jobs and retrenchment levels stayed “subdued”, the Monetary Authority of Singapore said.
Locals snapped up three out of every four new jobs, Jacqueline Loh, MAS Deputy Managing Director for markets & development said in a speech.
“The economic environment continues to be challenging,” Loh said. “We have to expect that new job creation in the financial sector will slow, while retrenchments are likely to pick up.”
The sector matters to Singapore, an Asian financial hub, as it employs more than 170,000 people and contributes 13 per cent of gross domestic product. The economic downturn also triggered fears of job losses while the government asked companies to treat its citizens fairly when it comes to both employment and promotion.
The Singapore economy is headed for a contraction of between 5 and 7 per cent in 2020, after shrinking by 13.2 per cent on a year-on-year basis during April to June, according to government data.
Supporting the local workforce in the financial sector during the crisis is a priority for the central bank, Loh said.