Difference between Fresh Graduates' Wages in Singapore and East Asian Economies
Ministry of ManpowerSpeakers
Summary
This question concerns Mr Kwek Hian Chuan Henry’s inquiry regarding how Singaporean fresh graduate wages compare with other East Asian economies and the strategy for maintaining wage competitiveness. Minister for Manpower Dr Tan See Leng responded that Singapore’s 2023 and 2024 median wage, adjusted for purchasing power, was higher than China, Japan, South Korea, and Taiwan, but slightly lower than Hong Kong. These differences reflect Singapore’s concentration in high value-added industries and its strong base of multinational corporations that compete internationally for talent. To sustain growth, the Government aims to attract investments in sectors like advanced manufacturing and the green and digital economy while raising productivity. Additionally, the Government will continue to equip graduates with industry-relevant skills through schools and workforce training to ensure sustainable wage growth amidst global disruptions.
Transcript
50 Mr Kwek Hian Chuan Henry asked the Minister for Manpower (a) whether the Ministry has compared fresh graduate wages in Singapore with those in other East Asian economies; (b) if so, what the wage differences are and what accounts for them; and (c) what the Government's strategy is to sustain Singapore graduates' wage competitiveness amid disruption from automation and offshoring.
Dr Tan See Leng: Based on the latest available comparable data for 2023 and 2024, the median wage among fresh graduates in Singapore was higher than most major East Asian economies. When adjusted for purchasing power, Singapore's median wage among fresh graduates was higher than China, Japan, South Korea and Taiwan, but slightly lower than Hong Kong.
The observed wage differences, after adjusting for purchasing power, reflect differences in economic structure and the types of activities undertaken across economies. Singapore's economy is more akin to Hong Kong's, with a greater concentration in high value-added industries and services, and deeper integration into global supply chains. Singapore also hosts a strong base of multinational corporations and regional headquarters, which play an important role in job creation. These firms compete internationally for talent and offer competitive wages to candidates who possess the skills and qualifications that the jobs demand.
To sustain wage growth for our fresh graduates, we must continue to grow good jobs in Singapore by attracting investments, raising productivity and supporting growth sectors, such as advanced manufacturing, as well as the green and digital economy. At the same time, we will continue to equip our fresh graduates, in schools and after entering the workforce, with industry-relevant skills that supports sustainable wage growth.