Bankers net highest pay increase this year: survey

Bankers received the highest average salary increases last year, according to a survey by global management consultancy Hay Group.

A survey it conducted in September 2011, covering over 480 Singapore-based companies (local and foreign-owned) from both the private and public sectors, revealed that the top three sectors with the highest salary increases (excluding pay freeze) are Banking and Financial Services (7.0 per cent), Transportation (4.9 per cent) and Fast Moving Consumer Goods (FMCG) (4.6 per cent).

Actual average salary increases (excluding pay freeze) are 4.4 per cent for 2011 while average salary increases for 2012 are forecasted at 4.4 per cent.

Mr Victor Chan, Regional General Manager (Singapore and ASEAN) for Productized Services, Hay Group, said: "Traditionally, the market trend around actual and forecast for salaries indicates a higher salary forecast for the following year. This time around, we've observed that the forecast is stagnant. Although the outlook for 2012 is less optimistic, the tight labour market in Singapore will nevertheless ensure that salary increments remain positive."

In terms of bonuses, the report (Bracing for an unpredictable economy) showed that the actual average variable bonus (i.e. performance-based bonuses excluding annual wage supplement, contractual bonuses) is 2.7 months for a 12-month period. This is slightly more than the average of 2.3 months in 2010.

Senior management will have something to cheer about this festive period, receiving the highest average bonus payout of 3.6 months. Middle management will look forward to 2.8 months, the second highest average bonus payout, while junior professionals and clerical support will receive an average bonus payout of 2.4 months and 2.2 months respectively.

The forecast average variable bonus payout is 2.7 months for the coming 12 months.

As a reflection of the downward business sentiment, only 46 per cent of the surveyed organisations plan to increase staffing levels by five to 10 per cent, compared to 62 per cent this time last year.

According to the report, the employee group in high demand are technical specialists (62 per cent) and junior professionals (47 per cent). Middle mnagement is seeing the highest cutback among the groups at 35 per cent.

Going by job functions, the main focus of recruitment is on Engineering (30 per cent), Sales (29 per cent), Finance & Accounting (27 per cent) and Administration/Support Service (27 per cent).

In its report today, Hay Group said that for companies to thrive in the current global economic uncertainty, companies have to differentiate their reward and employee engagement initiatives for high-performing talent.

"In light of the subdued economic outlook, companies are looking once again at how to do more with less. Hence, having employees who are willing to go the extra mile is critical for business success.

However, their discretionary efforts will be wasted if companies do not support them for success e.g. by removing red-tape, providing adequate resources. Otherwise, their additional efforts will not translate into business results," said Mr Chan.

The survey also showed that talent retention is still a major focus for companies, with 88 per cent of surveyed organisations looking into retaining and engaging their workforce.

Revised fares hit cabbies' takings

COMFORTDELGRO taxi drivers reported a drop in daily takings of at least 20 per cent yesterday, the first day the company's revised fares kicked in.

Cabbies my paper spoke to lamented that some passengers avoided getting into their taxis as a result of the fare revision.

"Even though they see that our cabs are empty, they choose to board those of other companies," said cabby S. L. Chua.

The 50-year-old, who has been a taxi driver for more than a decade, said his earnings yesterday had been "significantly" affected by the fare changes.

"Typically, I could easily make up to 20 trips in a day. But this morning, I had to go around hunting for passengers," he said.

Cabby Teh Kok Wah, 58, said he barely made enough money yesterday to cover the daily rental of his taxi and diesel costs of about $120.

"It is a lose-lose situation for both the passengers and us. They end up having to pay more while we see fewer people taking our cabs," he explained.

Even during the evening rush hour, cabbies said they faced similar difficulties.

When asked how business had been affected yesterday, ComfortDelGro spokesman Tammy Tan said that it was "too early to say".

ComfortDelGro's taxi companies, Comfort Transportation and CityCab, manage a fleet of about 15,700 taxis. Drivers of other taxi operators, too, reported a drop in earnings yesterday.

Trans-cab cabby H. W. Wong, 58, said: "When the biggest player increases prices, the passengers assume that all the cabs are charging higher fares and so avoid them altogether."

However, cabbies said they expect the situation to stabilise within the next two weeks, once passengers get used to the changes.

They also pointed out that December has traditionally been a slow period due to the school holidays, when people go on vacation.

However, it being the festive season, "people are in a festive mood and won't mind spending, so a clearer picture will emerge after Chinese New Year next year", said Mr Teh.

Yesterday, SMRT, the third-largest operator with some 4,000 taxis, also announced changes to its fare structure.

When contacted, two of the four other taxi companies said they are monitoring the situation.

Trans-cab and Smart Taxi said they are in discussions with their drivers to review their fares.

COE prices for cars fall

Premiums for certificates of entitlement (COEs) for cars fell at the end of Wednesday's open bidding exercise.

Prices for small cars (1,600cc and below, and taxis) dipped to $52,392 from $54,887 in the last bidding in November, a 4.5 per cent drop.

The open category, usually used for cars, also saw a two per cent dip to $75,889 from $74,340.

The biggest drop was reserved for the big car category (above 1,600cc). Prices fell 6.5 per cent to $72,350.


Commercial vehicle premiums slided marginally to $40,189 from $40,009.

Motorcycle premiums did not move much at $1,902 from $1,889, a 0.7 per cent change.

Singapore property shares plunge on gov't cooling move

SINGAPORE - Shares of Singapore property developers fell sharply on Thursday after the government announced new measures to cool the city-state's housing market.

CapitaLand Ltd shares fell as much as 6.5 per cent to S$2.44 while smaller rival City Developments Ltd fell 7.6 per cent to S$9.26 and Wing Tai Holdings was down 6.5 per cent at S$1.00.

Shares of Ho Bee Investment Ltd, which develops high-end condominiums in Singapore, tumbled by as much as 12.1 per cent to S$1.09.

Singapore said on Wednesday foreigners who buy private homes will have to pay an additional stamp duty equal to 10 per cent of the property value.


Analysts said they expect developers with greater exposure to high-end luxury apartments to face more pressure because as foreign buyers make up a large chunk of their sales.

"We believe each of the key residential demand drivers, foreign buying, job creation and credit availability, will likely see signs of softness," Goldman Sachs said in a report.

It added that this could lead to a 15 per cent decline in home prices over the next 18 months with the prime segment facing more immediate pressure as foreign buyers pull back.

S'poreans reminded to sign up for Growth Dividend

SINGAPORE: Letters will be sent out from December 7 to remind Singaporeans aged 21 and above to sign up for the Growth Dividend this year.

They must do so by 31 December 2011, said the Finance Ministry.

This can be done either online or at any community centre.

Grassroots leaders will also be visiting one- to three-room HDB flats to help the elderly and low-income Singaporeans sign up for their payouts.

Eligible Singaporeans can sign up online at the "Grow & Share" website www.growandshare.gov.sg.

Alternatively, they may complete the "Grow & Share" form available at any community centre, Community Development Council or CPF Service Centre. All forms should reach CPF Board before 31 December 2011.

What lies ahead for SMEs

SINGAPORE: Caution ahead! The sign seems to what most small and medium enterprises (SMEs) in Singapore see on the horizon.

The findings of the 9th annual SME Development Survey which were shared during a conference co-sponsored by HSBC Singapore, indicated that SMEs seem more aware of the potential for another downturn and the need for financial strength.

Ms Ong Siew Kim, general manager of DP Information Group, however noted that despite the low confidence level that impacted overseas expansion, SMEs should push beyond the familiarity of the local market to seize opportunities presented by regional as well as global markets as part of their overall long term strategy.

Other findings revealed – plans to freeze new hire in the year ahead, with the proportion of SMEs reducing human capital in the year ahead doubling, as opposed to the 2010 increase in hiring activities. The report further reveals that fewer SMEs are looking to invest in staff training and development. The conclusion is backed by WDA’s training scheme Skills Programme for Upgrading and Resilience (SPUR) in November 2010 which has seen SMEs’ investment in staff training take a backset.

The survey conducted between May and August this year among some 2,504 SMEs also found that only those in the information & communications sector plan to invest in staff training, while more companies in general, intend to employ higher skilled workers as part of their manpower strategies.

Given that budgets for technology innovation and staff training are being reduced, the survey also found that expansionary expenditure like branding and advertising strategies are less important.

Association urges other taxi operators to follow fare revision

The National Taxi Association (NTA) has urged the five other taxi operators in Singapore -- Trans-Cab, SMRT, Premier, Smart and Prime, to follow ComfortDelGro's fare revision, The Straits Times said on Tuesday.

The NTA represents taxi drivers here and currently has more than 11,000 members.

It said this would help to defray rising costs of operation, for example, higher diesel prices, and increase the annual income of taxi drivers.

NTA president Wee Boon Kim said drivers are expected to make about $6 or $7 more under the new fare structure.


Other firms say they have not decided whether to revise their fares, and will make a decision after seeking feedback from their drivers.

The report added that SMRT Taxis will consider a fare revision as drivers' operating costs have increased since the last fare revision in 2007.

ComfortDelGro explained the reason behind the revision by pointing to how "strong population growth and an increase in tourist arrivals" have led to a significant increase in demand for taxis throughout the day -- even during "off-peak" hours, The Straits Times said.