Over 20% of Japanese firms in Singapore cutting salaries due to Covid-19 impact
SINGAPORE, NNA – Over 20 percent of Japanese firms operating in Singapore are cutting salaries, prompted by the economic impact of the new coronavirus pandemic, a survey has found.
Among 219 members of the Japanese Chamber of Commerce & Industry Singapore, eight firms have already slashed salaries and bonuses and 38 firms are planning to do so, according to the May 12-13 survey.
Of these 46 companies, 17 are implementing pay cuts for full-time employees of up to 24 percent, according to the poll conducted with the Japan External Trade Organization.
Of all respondents, 175 firms said they are not facing problems with financial conditions, being supported by the Singapore government’s rescue measures and assistance from parent companies in Japan.
With international travel restrictions since late March and subsequent 14-day quarantine rules, 126 Japanese companies in the city-state have suspended entry by Japanese staffers, resulting in hampering personnel changes and relocations in Southeast Asia’s financial and business hub, the survey found.