According to recruitment expert Ken Ong, Managing Director at Morgan McKinley Singapore, banks in the city-state are significantly reducing their hiring, with some halting it altogether, as companies cut back on spending to preserve cash.
Ong told Asian Banking & Finance that hiring is not keeping up with employee turnover, noting that for every two people who leave, only one is replaced. He anticipates a general slowdown in bank hiring this year, although specific roles in wealth management, family offices, and relationship management remain sought after.
He observed that while major “bulge bracket” banks have scaled back their recruitment, second-tier and other Asian banks are still strategically hiring for certain positions. These banks are particularly focused on acquiring specialists in cybersecurity, cloud technology, and data analytics to enhance their capabilities.
Ong pointed out that with Singapore’s economy projected to be flat, much of the current hiring is for contract and project-based roles rather than permanent positions. This approach provides banks with greater cash flow flexibility and a safety cushion. “The main challenge currently in the market is that everyone is just being very cautious,” he stated.
This trend towards contractual work also serves as a trial period for employers to assess a candidate’s performance before offering a permanent role.
From the employee perspective, Ong noted a shift in preferences, with new hires often seeking contract jobs to gain varied experience before committing to a specialization. He also mentioned other market trends, such as bankers transitioning to the fintech sector and banking roles relocating from Hong Kong to Singapore.
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