Wd40 wrote: ↑Sun, 26 Mar 2023 11:33 pm
smoulder wrote: ↑Sun, 26 Mar 2023 1:10 pm
Wd40 wrote: ↑Sun, 26 Mar 2023 12:36 pm
My point is SG is very soon going to be a very unviable place for companies to setup up shop and bring foreign workers. The math just doesnt make sense. Even 4k seems a good deal now. People have really gone mad, they are asking for like 6.5k now for a HDB.
https://goodyfeed.com/amk-hdb-rented-6500/
So we need to think of some alternatives, near shoring to Malaysia could be an option. I dont understand why companies are not concerned about this yet.
The rents will hopefully come down again to saner levels. But your point is still valid - in my previous bank, Singapore was considered a high cost center and good for it's data center but the expectation was to have minimum IT staff. My current bank has set up a center of excellence in Malaysia. But that's in KL.
My bank uses Manila as their low cost COE in Asia, they have Poland and Romania too. This is a bit like bottom of the barrel scrapping now
In Singapore most teams are resisting hiring in Manila. The deal is you are allowed to liberally hire 5 guys in Manila no questions asked, but to hire in Singapore even one contractor, the approvals go to really high levels.
Cost center roles will inevitably get pushed out to lower cost regions. Has always been the case since the 90s, with the migration of disk drive manufacturing, printers etc.
Likewise with back office roles in banks, in the early 2010s.
Since then, rentals have only gone higher which goes to show that migration of higher value add roles into sg to replace these, and we’re now seeing various depts and foreign banks relocating profit center roles from HKG to SG. These are easily 200k sgd base comp and higher roles.
That’s what EDB has been actively doing, behind the scenes.