COST-OF-LIVING CONCERNS PERSIST
While core inflation is expected to decline in 2025, the forecasted rate of 2 per cent remains higher than the 1.1 per cent seen during the pre-pandemic years from 2015 to 2019, said OCBC.
“Price levels also remain high due to the earlier increases in inflation,” the bank added.
Singapore’s core inflation fell to 1.9 per cent year-on-year in November, the lowest in three years, and is expected to remain below 2 per cent (including the one-off effects of the GST) through end-2024.
It is projected to average 2.5 to 3.0 per cent in 2024 as a whole, before stepping down further to 1.5 to 2.5 per cent in 2025, according to the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) on Monday.
OCBC’s head of group human resources Lee Hwee Boon said cost-of-living concerns persist despite inflation being forecast to moderate in 2025.
“The well-being of our people remains a top priority, so we hope that this one-off payment will ease concerns over the high living costs faced by our junior colleagues,” she said.
“Beyond that, we are committed to providing upskilling and reskilling opportunities to ensure that our colleagues are equipped to meet the challenges of the future, while also empowering them to take charge of their own financial well-being.”
UOB’s Mr Tong said on Monday that it will continually review and enhance its wage structure to ensure that it is fair and competitive.
“This is complemented with our holistic range of perks and benefits that are sustainable for the long term, including enhanced medical support, training programmes and staff housing loans,” he said.
“Human capital is our greatest asset and we are committed to ensuring that we provide holistic support for our employees, including taking care of their career development, as well as wellness and welfare,” Mr Tong added.
This will be the second year in a row that OCBC and UOB are giving one-off payments to help junior employees cope with the costs of living.
Earlier this year, OCBC gave a S$1,000 one-off payment to its junior employees in Singapore, following a 2023 recommendation by the National Wages Council (NWC).
DBS and UOB also provided similar payments for staff this year.
While NWC did not call for a one-off payment this year, it was noted in its guidelines that employers who have done well should reward staff with built-in wage increases and variable payments.
