Technology Hiring Outlook in Singapore (Q3 2023 to Q1 2024)

The tech industry in Singapore has undergone a remarkable transformation, establishing itself as a key player on the global tech stage. As we set our sights on the hiring outlook for Q3 2023 to Q1 2024, we will explore the multifaceted dynamics that define the local tech ecosystem. 

In this blog, we will delve into the current state of tech hiring, its challenges, the strengths of Singapore’s tech landscape, and insights from industry experts. 

Our survey with 200 tech professionals (50% with more than 15 years of industry experience, and the remaining 50% with at least 3 years of industry experience) revealed diverse opinions regarding the hiring outlook for Q3 2023 to Q1 2024. 

• Approximately 22.4% find it “bleak and slow”. 
• A larger proportion of 57.1% consider it “flat and conservative”. 
• Meanwhile, 20.4% see it as “positive and growing”. 

“I think there will be continued demand for tech talent into 2024; The tech industry has been experiencing strong and sustained growth, and the demand for tech talent is likely to continue. As technology continues to advance and digital transformation efforts expand across various industries, the need for skilled tech professionals is expected to remain high.” – Head of Sales, Logistics Tech Firm

1. Overview of Singapore’s Tech Industry

The Singaporean tech landscape boasts a rich history, evolving into a global tech hub. The challenges and strengths shaped the current state of the industry. 

Challenges

The “mindsets of businesses” (38.3%) emerged as a significant obstacle to tech growth with other prominent challenges such as “high cost of doing business” (25.8%), “limited local market size” (23.5%), and the “shortage of skilled talent” (20.8%). 

Strengths and Advantages

A substantial 24.6% recognised that “strong government support and initiatives” contributed to the tech industry’s advantage. Other strengths include strategic geographical location, well-established infrastructure, and a business-friendly environment. 

Tech Operations Moving Out

Approximately 50% of respondents observed companies shifting tech operations abroad, with Vietnam (42.9%) and India (31.4%) as top destinations. Functions like Engineering, Product Development, Customer Service, R&D, and Operations have moved abroad, while Sales, Finance, and Legal functions remained in Singapore. 

2. The State of Hiring in the Tech Sector

Many would recall the rampant hiring trend in the tech sector during the mid-stages of the global pandemic (late 2020 to mid-2022) and this was the period where competition for the best available talents rocketed, and so did salaries in the tech industry. However, that took a hit near the end of last year with major layoffs by tech giants globally, and that led to the decline of hiring needs ever since.

On the ground, we witnessed a recovery, despite a slow one, and it would take a while for the hiring surge to reach the heights of before with geo-political tensions surrounding major markets around the world. Varying perspectives on the hiring outlook reflect the complex dynamics within the industry. One of the respondents in this survey, who is the CEO of a Digital Financing platform, emphasised a focus on productivity improvement over hiring. 

3. Insights from Industry Experts

In the past year, the developments in Artificial Intelligence (AI) have also increased the viability and competitiveness of smaller companies and start-ups through increasing productivity. We observed some industry experts calling upon the government to provide more support towards tech start-ups. Fields and skills such as Data Analytics and AI (Machine Learning, Deep Learning) remain in strong demand in a regional tech hub like Singapore.

The optimism revolving around talent demand in these areas is clear to see, and it will be interesting to look out for the changes in policies surrounding reskilling, upskilling and even foreign talent attraction, from the Singapore Government. 

• An APAC Director of a Data Analytics firm provided insights into the tech hiring trend for the latter part of 2023 and 2024: “Demand for good talent will be strong. However, global headwinds in the tech industry may put a dampener.”
• The Head of Talent Acquisition and Development of a Fintech company expresses the desire for more government efforts to support tech start-ups and retain tech talents in Singapore.
• Another Senior Tech Leader also gave an interesting suggestion of lowering barriers for young talents from overseas and creating policies for them to settle down in Singapore for the long term.