Hiring to pick up despite uncertainty

SINGAPORE - Mr Robert Tan found the right fit when he took on a job as a financial adviser late last year.

It suited his personality as he spends long hours each day meeting and chatting with clients.

"It appeals to me because it is who I am. I am very comfortable when I speak with people and it doesn't really count as work," the 25-year-old told My Paper.

And, as long as he meets his sales targets - he makes about $2,500 a month selling unit trusts and insurance - he feels secure in his role.

Employees in the sector of finance, insurance and real estate can look forward to brighter times.

The sector is the most optimistic when it comes to employment prospects in the first three months of next year, according to results of a survey conducted by workforce-solutions firm Manpower Singapore.

Results of the Manpower Employment Outlook Survey released yesterday show that while employers may be cautious in their expansion plans, there are signs of stability in the labour market.

A sample of 654 employers here was interviewed for the survey.

The country's overall employment outlook for the first three months of next year is good, with a "respectable" increase of 11 per cent and employers in all seven industry sectors expected to raise staffing levels.

Even the services sector, the weakest, is expected to increase staffing by 3 per cent.

A separate report released yesterday by global management consultancy Hay Group said that, despite the continuing uncertainty in the global economy, "hiring seems to have picked up in Singapore".

According to the report, 58 per cent of more than 505 Singapore-based companies from both the private and public sectors are planning to increase staffing levels. This is compared to 50 per cent this time last year.

The companies were polled on their business sentiments, and salary and bonus projections for the next 12 months.

The report showed that the top five areas of recruitment are in engineering, sales, finance and accounting, IT and telecommunications, and marketing.

It also said that Generation Y talent, typically those born between 1981 and 2000, are most attracted and motivated by measures such as financial assistance in education and training, job rotations and overseas-attachment opportunities.

Proceed with care in Asian investments

Q: Asian markets are at extremely cheap levels now. Do you think it is a good time for investors to enter this market? 

A: Using the MSCI Asia ex-Japan Index as a gauge, Asian markets are indeed at very attractive valuations. From a price-to-earnings perspective, the market is currently at its lows compared to the last 35 years. Further, from the angle of price-to-book ratio, Asia is also well below its long-term average of 1.8x at current levels.

Despite the cheap valuation, it may be too soon to jump back into a high beta market like Asia: the global headwinds stemming from the crisis in Europe, as well as the slowdown in the US and China, have shown few signs of easing.

However, it is also advisable for investors to maintain a balanced and diversified portfolio during these volatile times. Although risk aversion remains intact, investors interested in gaining exposure to the Asian equity market can consider the defensive sectors. These sectors may help manage downside risk of a portfolio.

Additionally, defensive companies are less sensitive to economic cycles as they produce items that are needed by consumers irrespective of economic circumstances. Another enticing aspect will be that of sustainable dividends which may help ease downward pressure from the market by adding a premium over steady income.

Investors can also consider dollar cost averaging (DCA) to gain exposure to Asian markets. This is a disciplined and convenient approach where investors reduce the need to time the market. In addition, it may help reduce investment costs and boost potential returns when the market turns for the better.

The foundation of successful investing remains educating and familiarising oneself with the various aspects of the market. Investors should also conduct due diligence to back each investment decision. It is also advisable to speak to a qualified financial adviser to truly understand the risk before investing in the market.