20 April 2026
A snap poll conducted by the Singapore National Employers Federation (SNEF) from 10 to 16 April 2026 found that 96% of respondents are facing higher operating costs amid higher energy prices, and more than half (53%) are concerned about rising manpower cost pressures. The poll drew responses from 210 companies across the manufacturing, services, and construction sectors. More details are in Annex A.
2 Within the 96% of respondents who are facing higher operating costs, 36% reported slight cost increases of 1% to 10%, 41% reported moderate cost increases of 11% to 25%, and 19% reported significant cost increases exceeding 25%. The most affected operating cost components have been utilities (70%), fuel (70%), materials and supplies (59%), and air and sea freight (53%).
3 Respondents highlighted that higher energy prices were having a knock-on effect on business operations. Beyond direct increases in utilities and fuel expenses, businesses were also facing higher costs for raw materials, supplies, and logistics. Respondents in the hospitality, food and beverage, and retail sectors also reported upward pressure on temporary labour costs as market adjusts to the higher-cost environment. Taken together, these pressures were squeezing margins, especially amid softer consumer demand.
Most Employers Have Held Off on Workforce Changes
4 The poll further revealed that 83% of respondents have not implemented workforce or workplace changes in direct response to higher energy prices. This suggests that most employers are exploring operational adjustments before resorting to measures that directly affect their employees.
5 Among the 17% of respondents who have implemented workforce or workplace changes, the most common measures were hiring freezes or delayed expansion plans (67%), staff redeployment or cross-training (33%), and headcount reduction through natural attrition (33%). Other measures included reductions in bonuses, allowances or benefits (25%), and reductions in work hours, overtime or shifts (19%). These are largely calibrated responses aimed at managing costs while preserving jobs.
Employers Call for Targeted Support Should Energy Prices Remain High
6 When asked what forms of support would be most useful should energy prices remain elevated over the next 12 months, employers identified three clear priorities:
a) Business cost support such as tax relief or financing assistance (83%);
b) Energy cost relief and subsidies (77%); and
c) Delaying manpower policy changes that would add further cost pressures (55%).
The responses reflect employers’ concerns about the cumulative burden of higher business costs amid an already challenging operating environment.
Employers Remain Cautious About Business Outlook
7 Employers remain cautious about the business outlook, with 39% of respondents indicating a negative outlook for the next six to twelve months. Beyond the immediate cost pressures, employers highlighted deeper concerns over growing disruption to global business and trade, noting that supply chains are being redrawn and investment decisions are becoming increasingly cautious.
8 SNEF CEO Hao Shuo said, “The poll findings show that employers continue to be concerned over manpower costs amid escalating energy prices, which are driving up overall operating expenses. We welcome the support measures already announced by the Government, including the higher 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 and also introduce a tiered level of support under the enhanced Progressive Wage Credit Scheme to help employers that are raising wages for their lower-wage workers.”
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About Singapore National Employers Federation
The Singapore National Employers Federation (SNEF) is a trade union of employers. Our mission is to advance tripartism and enhance labour market flexibility to enable employers to implement responsible employment practices for sustainable growth. SNEF has a membership of more than 4,000 companies with around 900,000 employees. For more information, please visit www.snef.org.sg.
Annex: About the Poll
The snap poll was conducted by SNEF between 10 and 16 April 2026. A total of 210 companies across the manufacturing, services and construction sectors responded.
Key Findings
1. 96% of respondents reported increased operating costs due to higher energy prices; 60% face cost increases exceeding 10%.
2. 53% of respondents highlighted rising workforce cost pressures as a top concern.
3. 83% of respondents have not yet implemented workforce-related changes. Among the 17% that have done so, the most common measures were hiring freezes or delayed expansion plans, staff redeployment or cross-training, and headcount reduction through natural attrition.
4. Employers’ top three calls for support were business cost support (83%), energy relief and subsidies (77%), and delays to manpower policy changes that add to cost pressures (55%).
5. 39% of respondents indicated a negative business outlook for the next 6 to 12 months.
Profile of Respondents
