Issue #10: What’s Happening This Week?—Pay Raises for Healthcare Workers, Record High Coffee Prices, and More

Good news—thousands of healthcare workers in Singapore are getting a pay raise this year! Whether you’re a physiotherapist, pharmacist, or support staff, this salary bump is something to look forward to by mid-2025. So, the next time you’re sleepily sipping your morning cuppa before work, take a moment to appreciate the upcoming boost.

Oh, but about that coffee—bad news. Prices are soaring, with arabica futures nearing $4 per pound due to supply shortages in Brazil. If you rely on caffeine to power through the day, you might need to budget a little extra.

Meanwhile, central banks are heading in different directions—some are cutting rates to boost growth, others are holding steady, and Japan is hiking rates. These shifts could impact exchange rates, investments, and borrowing costs in Singapore.

All this and more in this edition of What’s Happening This Week?, our weekly series rounding up the latest finance news and updates that matter to you.

TLDR Pay raises coming for 37,000 healthcare workers: Singapore’s healthcare workers, including allied health professionals and nurses, will receive salary increments by mid-2025 to improve retention and career prospects. Coffee prices keep climbing, hitting record highs: Arabica coffee prices are nearing $4 per pound due to supply shortages in Brazil, meaning your daily caffeine fix could soon cost more. Central banks take different paths on interest rates: While some countries are cutting rates to boost growth, others are holding steady or hiking rates, impacting global markets and borrowing costs.

Want more details? Let’s dive in.

 

Psst, missed last week’s issue? View all past editions of What’s Happening This Week? to catch up.

 

Pay raises coming for 37,000 healthcare workers by mid-2025

Good news for Singapore’s healthcare workforce—around 37,000 allied health professionals (AHPs), pharmacists, and support staff will receive salary increments by mid-2025.

This adjustment, which follows discussions with unions, aims to attract and retain talent in Singapore’s public healthcare sector. It’s the first pay raise for these groups since 2021 and will benefit professionals like physiotherapists, occupational therapists, dietitians, and administrative staff.

Additionally, 26,000 public healthcare nurses will also see salary adjustments. While smaller than previous increases, these tweaks build on the ANGEL (Award for Nurses’ Grace, Excellence, and Loyalty) scheme, which supports nurses in developing lifelong careers.

Beyond salary increments, the Ministry of Health (MOH) has been working to improve transparency and career prospects for healthcare workers. In 2024, community care organisations (CCOs) received funding to boost staff salaries, and salary guidelines were published for job seekers.

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ALSO READ: Cost of Health Screening Packages in Singapore (2025)—Public and Private Hospitals, Clinics and More

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Coffee prices keep climbing, reach record highs

Coffee lovers, brace yourselves—arabica coffee prices are soaring and nearing a record $4 per pound, thanks to tight supplies and concerns over upcoming crops. On 30 Jan 2025, arabica futures in New York hit $3.7685 per pound, already up 15% this year.

What’s behind this caffeine-fuelled rally? Brazil, the world’s top arabica producer, is facing major supply shortages after last year’s severe drought. While recent rains offered some hope, new forecasts predict below-average rainfall and rising temperatures in key growing regions, fueling fresh concerns.

Big coffee roasters like Nestlé and JDE Peet’s are reportedly still scrambling to secure enough supply, while traders remain bullish on coffee prices. Stockpiles of certified arabica beans at ICE (the global coffee exchange) have already fallen by 100,000 bags, with further declines expected.

It’s not just arabica—robusta coffee, commonly used for instant coffee, is also in short supply. Prices surged 2.2% to $5,734 per ton, close to an all-time high. Vietnamese farmers, the world’s top robusta producers, are holding back sales in hopes of even higher prices.

 

Central Banks are taking different paths in 2025

Unlike last year, when most central banks cautiously cut interest rates, 2025 is shaping up to be a year of mixed strategies. Some countries are cutting rates to boost growth, while others are holding steady or even raising rates to fight inflation. Here’s the lowdown.

Rate cutters

Switzerland, Canada, Sweden, New Zealand, and the Eurozone have lowered rates to stimulate sluggish economies. The European Central Bank has already cut rates five times since mid-2024, and more cuts are expected this year.

Holding steady

The U.S. Federal Reserve kept rates unchanged, signalling caution in making further cuts. Fed Chair Jerome Powell said they will wait for clearer inflation and job data before deciding.

Rate hikers

Japan stands out as the only major economy increasing interest rates, raising them to 0.5% for the first time since 2008. More hikes are likely as Japan fights inflation with rising wages.

For Singaporeans, these shifts could impact exchange rates, investment returns, and borrowing costs. If global rates fall, we might see cheaper loans and stronger stock markets—but if rates rise, borrowing could get pricier. Keep an eye on how this unfolds.

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ALSO READ: 10 Best Savings Accounts in Singapore with the Highest Interest Rates (2025)

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