SINGAPORE: Singaporeans may need to rein in plans to quit their jobs, as the so-called “Fire Horse year” may bring heightened volatility and economic strain.
With heightened risks, Thammasat Business School professor Witawat Rungruangphon warned, “Leaving the workforce at this time carries high risk, as finding new employment will be difficult.”
Although he was referring to Thailand’s economy, reports of cost-of-living pressures and youth employment issues in the little red dot suggest that Singapore workers should heed the same advice.
The city-state ended 2025 with a robust 4.8% economic growth, up from 4.4% the previous year, yet DBS expects Singapore’s economic resilience to be tested in 2026.
The bank expects the economy to show “measured resilience”, with macroeconomic fundamentals and policy buffers cushioning the little red dot from external challenges.
However, Chua Han Teng, senior economist at DBS Group Research, noted that the above-trend growth of over 4% in the past two years will be tough to replicate.
Challenging job market trends also add to these pressures, making career moves riskier.
A LinkedIn report earlier this year found that two-thirds of Gen Z professionals in the city-state plan to switch jobs in 2026, even as many are unsure how to stand out in a competitive market.
Meanwhile, a more recent report from Indeed forecasted the continued decline in job postings in the near term, reflecting a survey by the Singapore National Employers Federation (SNEF) showing that nearly three in five employers plan to freeze hiring this year due to uncertain business prospects.
To stay afloat this year’s economic challenges, Professor Witawat, as Bangkok Post reported, advised households to reassess their assets that make little to no money to preserve liquidity.
For workers trying to upskill, they could learn practical skills like cooking or repair work that could later turn into side hustles, aside from learning high-tech skills like artificial intelligence (AI).
Small and medium-sized enterprises (SMEs) were also warned against external pressures from global trade tensions and US tariffs to supply chain disruptions from geopolitical conflicts and competition from low-priced Chinese imports.
“Some businesses will not survive,” he said, but those who adapt, cut non-performing assets, leverage AI, and maintain cash flow will have the opportunity to “grow again” when the economic cycle turns. /TISG
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