The manufacturing sector in Singapore has shown resilience with factory output surpassing expectations in August 2024. However, amid ongoing global economic uncertainties, job growth is expected to remain conservative at least through Q1 2025.
While the sector is not experiencing recession-level decline, manufacturing employers are taking a measured approach to workforce expansion. Companies are focused on optimising their existing resources and maintaining operational efficiency as they await more stable global economic conditions before committing to significant hiring plans.
Singapore continues to see a strategic transformation in its manufacturing landscape. Due to space constraints and rising operational costs, companies are adopting a regional operating model where production facilities are relocated to neighbouring markets such as Malaysia, Vietnam and Thailand.
This shift allows manufacturers to maintain their competitive edge while preserving their high-value functions, including sales operations, advanced technology development and R&D capabilities, within Singapore's knowledge-intensive ecosystem.
Discover insights into Singapore's job market with Randstad's 2025 Market Outlook and Salary Guide. This report analyses labour trends, salary benchmarks, bonuses, and hiring patterns across industries. Download the report to improve your talent acquisition strategies and workforce planning for the upcoming year.
sustainability drives manufacturing transformation
Singapore's commitment to sustainability and renewable energy is reshaping the manufacturing landscape. As the government diversifies the nation's energy sources with a focus on solar and hydroelectric power, manufacturers are increasingly aligning their operations with green initiatives to reduce their carbon footprints.
The push towards sustainability is largely driven by Singapore's net-zero emissions target by 2050. More specifically, 80% of all new buildings must meet Super Low Energy standards by 2030, which would work towards enhancing the appeal of Singapore as a destination for environmentally conscious manufacturers.
This green transition is also being accelerated by market demands, with a growing number of manufacturers receiving requests for sustainable components from their customers who are themselves pivoting towards renewable energy solutions.
While this transformation is gaining momentum, we expect hiring activities specifically for sustainability roles to remain measured in 2025. Instead, companies are focusing on developing their existing workforce through green skills training and environmental certifications to meet evolving business needs.
Employers are also placing greater emphasis on transferable skills when evaluating candidates, recognising that technical expertise can be built through targeted on-the-job training and upskilling programmes.
AI revolution powers electronics manufacturing growth
The electronics manufacturing industry in Singapore is experiencing strong momentum, driven by surging artificial intelligence (AI) demands from technology customers. This growth trajectory is expected to continue over the next few years as AI applications become more prevalent across industries.
The 3-year AI Centre of Excellence (AI CoE) set for launch in Q4 of 2024 aims to “harness AI to optimise manufacturing processes, enhance quality assurance, product and component design, as well as leveraging on large-language models to complement human operators in the workforce.” It will further develop AI capabilities to boost the sector’s competitiveness and expand its talent pool to meet increasing recruitment demands.
evolving talent expectations in manufacturing
European manufacturing firms continue to lead in talent attraction, leveraging their established reputation for quality and stability. This trend presents both challenges and opportunities for American and Asian employers, who must strengthen their employer value proposition - particularly in areas of workplace flexibility, environment quality and competitive compensation - to attract top talent.
Our 2024 Employer Brand Research revealed that manufacturing talent in Singapore values “good work-life balance” slightly more than “attractive salary and benefits” when considering their ideal employer.
This changing mindset has prompted many manufacturers to adapt, with an increasing number offering flexible work arrangements for roles that can accommodate remote working. The percentage of manufacturing professionals with hybrid work options has seen modest growth, rising from 37% in 2023 to 41% in 2024.
The global economic climate has significantly impacted salary expectations during job transitions. Manufacturing talent has adjusted their increment expectations downward, from 20% to 25% in previous years to a more modest 10% to 15% in the current market. However, compensation is not the only deciding factor.
Career progression has emerged as a critical consideration, with our research showing that one in three manufacturing professionals cited lack of career growth opportunities as their primary reason for resignation in 2023.
hiring practices evolve with market dynamics
Manufacturing employers are maintaining their focus on fundamental hiring principles, with particular emphasis on job compatibility and cultural alignment. For example, companies with structured operations continue to prioritise candidates who demonstrate strong process adherence and operational discipline.
The hiring landscape has seen significant changes in 2024, with recruitment timelines extending to nearly twice their previous duration. This extension reflects a more thorough approach to talent acquisition, as employers conduct comprehensive candidate evaluations to ensure the right fit, in terms of technical skills and alignment of values. However, this extended process often reveals skill gaps within existing teams, sometimes necessitating job scope revisions and renewed recruitment efforts.
Internal mobility has gained prominence in manufacturing firms' talent strategies. Even after evaluating external candidates, many employers are choosing to promote from within, recognising the dual benefits of fulfilling their employees' career aspirations while leveraging existing organisational knowledge. This approach particularly values candidates who already understand company processes and cultural dynamics, enabling smoother transitions into new roles.
While some firms are preparing for increased costs and trade restrictions, others see opportunities for investment in Southeast Asia as an alternative manufacturing hub. As companies monitor market sentiments globally and regionally to adapt to the uncertain landscape, the trend of careful hiring will likely continue as companies in Singapore adopt a cautious approach.
download singapore’s 2025 manufacturing job market outlook and salary guide
Whether you're in electronics manufacturing, process engineering, or emerging areas like green manufacturing and Industry 4.0, learn about hiring trends, salary benchmarks and career opportunities. Explore Singapore's manufacturing sector and other key industries in our 2025 Job Market Outlook and Salary Guide Report.
The 2025 Randstad Job Market Outlook and Salary Guide report examines key talent expectations as well as current industry trends and salary benchmarks in the following industries:
- Accounting and finance
- Banking and financial services
- Human resources
- Insurance
- Legal
- Sales and marketing
- Supply chain
- Technology
partner with randstad
Finding the right talent or the right role shouldn't be left to chance.
Whether you're building your team or advancing your career, we're here to help. Looking to hire? Let's discuss your needs and the current market landscape. Ready for your next career move? Browse our opportunities or share your CV with us today.