According to SGX website, the Singapore Straits Times Index (STI) hit a record high of 5,072.34 on 19 May 2026 at closing. This is an all-time high indicating a strong health and profitability of the SGX listed companies. In the years from 2018-2024, I recall STI was always hovering near the 3,500 mark.
Divergence of Stock Market vs. Job Market
A booming stock market, one would imagine indicates the economy is doing well as a whole. However, this isn't always the case.
In recent months, there have been news of retrenchment hitting the headlines. Some involved the most well-known Singaporean household brands, and hence have caused quite a stir.
On 31 March 2026, Yeo Hiap Seng announced laying off 25 employees to consolidate manufacturing to nearby Malaysia. Tiger beer maker, Asia Pacific Breweries also announced on 24 March 2026 that it was relocating all of its beer production in Singapore to Malaysia and Vietnam.
On 20 May 2026, Gardenia also announced it was shifting its manufacturing at Pandan Loop in Singapore to Malaysia, impacting 141 employees.
I totally enjoyed this Tiger Beer video coverage back in 28 May 2025.
These are some of the most well-known local brands for a Singaporean Son. If you served National Service, then you will have drank lots of Tiger beer at the army camps mess (often at subsidised rates), and also ate countless Gardenia Twiggies, which is a comfort food/snack that was often issued as a night snack. |
| Gardenia Twiggies - a Singaporean Son favourite Army night snack. Picture courtesy of Gardenia website |
These are blue collar, manufacturing jobs that are going away, and probably for good. But what about major MNCs and white-collar jobs that is the mainstay jobs for most Singaporean PMETs?
Banks such as DBS made headlines in Feb 2025 when it announced it was going to cut 4,000 jobs over 3 years. This year, HSBC and Standard Chartered announced impending global cuts and to their workforce in coming years citing AI. Meta and Amazon likewise have announced restructuring to its global workforce, which included Singapore.
With all this doom and gloom, it strikes a lot of fear into people's hearts on what to expect next.
But is it time to panic? No, it probably isn't.
According to preliminary data from the Ministry of Manpower website on retrenchments, Q1 preliminary data looks to be around the same range at 3,700 or 1.5 per 1,000 employees. This was comparable to Q4 2025 at 3,690. We will have to wait and see how 2026 turns out, but chances are that it will not be as bad as the year of COVID in 2020 when there was a record number of retrenchments.
Uncertainties Ahead
Nobody holds the crystal ball.
With the global macroeconomics and uncertainties ever increasing, one might wonder if we will continue to stay safe. For the Singapore stock market, it does seem to have a clearer path to its goals which are being charted out for growth.
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| Blue graphs above plotted according to Source: Labour Market Survey, Manpower Research & Statistics Department, MOM |
Likewise, unemployment statistics look to be relatively stable as compared to previous years. Therefore, based on the above statistics, it does seem to indicate that the job market is relatively resilient and there is no cause for immediate panic.
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| Report: labour Market Advance Release First Quarter 2026 |
Nobody holds the crystal ball.
With the global macroeconomics and uncertainties ever increasing, one might wonder if we will continue to stay safe. For the Singapore stock market, it does seem to have a clearer path to its goals which are being charted out for growth.
Firstly, there is the Expansion of the Equity Market Development Programme (EQDP) by the Monetary Authority of Singapore (MAS). It was first announced in February 2025 and is aimed to improve the local asset management and improve investor confidence in the Singapore equities market. The effect on SGX stocks is that it should see certain segments of stock valuations being boosted due to more coverage and thus attracting more commercial and retail investors.
While it is not a "rising tide lifting all boats" in that it does not guarantee all SGX stocks will rise, it does seem to have brought about a positive effect with STI climbing to 5,000 mark recently. With this it is expected to also attract more liquidity and activity.
To be honest, I'm totally not used to seeing 10% or 20% jump in SGX stocks often such as in those recent times in AEM, and UMS. But I see it as positive as there is now more interest in the STI than before, which can only be a good thing.
Secondly, macroeconomic uncertainties over the last few years have seen more "monies" looking for safe heavens. China and Hong Kong's geopolitics shift after COVID, influx of family offices such as those from South Korea (to avoid hefty inheritance tax) and the Middle East conflict in Iran have seen more interest coming onto Singapore and perhaps SGX.
This regional influx of monies has also acted as capital for SGX stocks.
What will you do?
People WILL continue to be laid off. This wave of retrenchment isn't the first and won't be the last for sure.
We don't know what the future holds, and AI in itself is touted to be revolutionary, with the ultimate aim to eventually replace workers.
In the mild scenario, we all learn AI tools and get on with our work. In an intermediate scenario, perhaps one worker will do like a 10-person or more job with AI agents. In the worst-case scenario, which anarchy and total collapse of labour and government, AI and robots totally replace us. (Perhaps like dystopian shows in the Matrix, and Terminator series).
The thing is, we don't know if our jobs will still be here tomorrow.
BUT, if you have a choice today, and you see that there is an avenue to channel your primary income into something you know has a good chance to grow in the next few years: What will you do?
Until the next time,
Stay vested. Stay hungry.
While it is not a "rising tide lifting all boats" in that it does not guarantee all SGX stocks will rise, it does seem to have brought about a positive effect with STI climbing to 5,000 mark recently. With this it is expected to also attract more liquidity and activity.
To be honest, I'm totally not used to seeing 10% or 20% jump in SGX stocks often such as in those recent times in AEM, and UMS. But I see it as positive as there is now more interest in the STI than before, which can only be a good thing.
Secondly, macroeconomic uncertainties over the last few years have seen more "monies" looking for safe heavens. China and Hong Kong's geopolitics shift after COVID, influx of family offices such as those from South Korea (to avoid hefty inheritance tax) and the Middle East conflict in Iran have seen more interest coming onto Singapore and perhaps SGX.
This regional influx of monies has also acted as capital for SGX stocks.
What will you do?
People WILL continue to be laid off. This wave of retrenchment isn't the first and won't be the last for sure.
We don't know what the future holds, and AI in itself is touted to be revolutionary, with the ultimate aim to eventually replace workers.
In the mild scenario, we all learn AI tools and get on with our work. In an intermediate scenario, perhaps one worker will do like a 10-person or more job with AI agents. In the worst-case scenario, which anarchy and total collapse of labour and government, AI and robots totally replace us. (Perhaps like dystopian shows in the Matrix, and Terminator series).
The thing is, we don't know if our jobs will still be here tomorrow.
BUT, if you have a choice today, and you see that there is an avenue to channel your primary income into something you know has a good chance to grow in the next few years: What will you do?
Until the next time,
Stay vested. Stay hungry.
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Share with me and fellow readers!
K.C.
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