Costs are creeping up again—and you might already be feeling it at the hawker centre. At the same time, the job market is showing signs of cooling, even as policymakers step in to manage rising inflation. Across the economy, higher energy prices are quietly pushing up costs for businesses and households alike, while growth momentum looks a little less certain. There’s also a longer-term outlook on inflation, plus a surprising shift in how Singaporeans are approaching their careers. Here are 7 key updates shaping your money this week.
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Hawker prices rise as costs climb amid Middle East conflict
Your next hawker meal might cost a bit more. Across Singapore, some hawkers have raised prices by up to $1 as rising energy and ingredient costs squeeze already thin margins.
The main culprit? Higher fuel prices linked to the Middle East conflict, which are pushing up everything from utilities to delivery fees. For many stallholders, absorbing these costs is no longer sustainable.
What’s happening on the ground
- Price increases: +$0.50 to +$1 per dish
- Operating costs: up ~10% in recent weeks
- Profit drops: up to 20% for some stalls
- Over 220 vendors affected at Chinatown Complex alone
Why prices are going up
- Higher energy bills (electricity, gas)
- Increased ingredient costs from suppliers
- Delivery fees rising due to fuel surcharges
Some hawkers are also seeing fewer customers, with daily revenues falling by at least 20% in certain areas. Industry groups are calling for support like rental and utility rebates, while authorities monitor the situation.
MAS outlook: Hiring and wage growth set to slow in 2026
Singapore’s job market is expected to cool in 2026, with slower hiring and smaller pay rises as businesses turn cautious amid global uncertainty. According to MAS, the Middle East conflict and softer economic outlook are prompting firms to reassess expansion plans.
While this doesn’t signal a downturn just yet, it does mean the strong labour market seen in 2025 may not carry through at the same pace.
What’s changing
- Hiring likely to slow as companies pull back on expansion
- Wage growth expected to moderate from 2025 levels
- Business sentiment has softened slightly
Where jobs are still growing
- Healthcare and social services
- Education and public sector roles
- Tech and engineering (ongoing skills shortages)
MAS notes that sectors hit harder by rising energy costs may cut hiring more aggressively, while others remain resilient. There’s also a risk that if the slowdown worsens, retrenchments could rise and wage growth could weaken further.
For now, the labour market remains balanced—but workers may need to temper expectations on pay bumps and job opportunities this year.
MAS tightens policy as stronger Singdollar expected amid energy-driven inflation
Singapore’s central bank has tightened monetary policy for the first time since 2022, signalling a stronger Singdollar ahead as global energy prices surge due to the Iran conflict . The move aims to soften the impact of rising import costs—but it also points to higher inflation in the months ahead.
MAS is allowing the currency to appreciate more quickly, which helps make imports cheaper and offsets rising oil and gas prices. Still, the broader outlook is mixed, with inflation expected to climb while economic growth slows.
Key updates at a glance
- 2026 inflation forecast raised to 1.5%–2.5% (from 1%–2%)
- Policy tightened by steepening Singdollar appreciation path
- Energy prices rising due to Middle East supply disruptions
What this means for you
- Higher costs likely for: electricity, transport, and groceries
- Imported goods and services expected to get pricier
- Stronger Singdollar may cushion—but not fully offset—price increases
Meanwhile, Singapore’s economy grew 4.6% year-on-year in Q1 2026, but contracted 0.3% quarter-on-quarter, signalling a possible slowdown ahead as global uncertainty persists.
Energy shock to hit property and F&B as costs ripple across economy
The impact of rising energy prices is spreading beyond utilities and transport—now hitting everyday sectors like property and food & beverage (F&B) too. As the Iran conflict disrupts global oil and gas supplies, businesses across Singapore are bracing for higher costs and tighter margins.
The effects are both direct and indirect, with energy-intensive industries feeling the squeeze first—but knock-on effects are already reaching consumers.
Sectors under pressure
- Transport: higher fuel costs for land, air and sea
- Construction: rising material costs (especially petroleum-based)
- F&B: higher utility bills, packaging and ingredient costs
- Real estate: increased development and operating expenses
What’s happening behind the scenes
- Oil and gas supply disruptions pushing up global prices
- Bunkering sector already affected, with record-high fuel prices
- Supply chain issues raising costs for raw materials and logistics
Over time, these higher business costs are likely to be passed on to consumers—adding to inflation and squeezing household budgets. If the energy shock drags on, it could also slow hiring, wage growth and overall economic activity.
ALSO READ: Compare the Best Electricity Price Plans: Open Electricity Market
Singapore economy grows 4.6% in Q1 but momentum slows
Singapore’s economy grew 4.6% year-on-year in Q1 2026, easing from 5.7% in the previous quarter and falling short of expectations. While growth remains steady on the surface, a 0.3% quarter-on-quarter contraction suggests momentum is starting to cool.
The slowdown comes as global uncertainties—especially the Middle East conflict—begin to weigh on trade, energy costs and overall business activity.
Key figures at a glance
- GDP growth: 4.6% (down from 5.7% in Q4 2025)
- Quarter-on-quarter: -0.3% (reversal from +1.3%)
- Full-year forecast: 2%–4% (unchanged for now)
What’s driving the economy
- Manufacturing: +5% YoY, but -4.9% QoQ pullback
- Construction: +9% YoY, supported by public and private projects
- Services: +6.7% YoY, led by trade and transport sectors
Looking ahead, rising energy costs and weaker global demand could drag on growth. Sectors like manufacturing and transport are especially exposed, while domestic sectors may face higher operating costs.
MAS outlook: Inflation may ease in 2027—but risks remain if conflict drags on
There’s some relief in sight on inflation—but not just yet. MAS expects price pressures to ease gradually in 2027 as global energy prices stabilise, though ongoing conflict in the Middle East could keep costs elevated for longer.
For now, the outlook remains uncertain. Higher energy and food prices are already feeding into everyday expenses, and any prolonged disruption could push inflation higher while slowing economic growth.
What to watch
- Inflation expected to ease in 2027 (if energy prices stabilise)
- Risks remain tilted towards higher inflation in the near term
- Growth in 2026 likely to slow from 2025 levels
Why it matters
- Rising import costs may push up prices across goods and services
- Household purchasing power could be squeezed
- Businesses may cut spending or delay investments
While inflation may cool eventually, the road there could be bumpy depending on how the global situation unfolds.
MOM study: 1 in 5 Singapore workers are overqualified—but most choose it
Nearly 1 in 5 workers in Singapore are overqualified for their jobs—but here’s the twist: most are perfectly okay with it. A Ministry of Manpower (MOM) study found that 19.4% of resident workers held qualifications above their job requirements in 2025, up from 16.3% in 2015 .
Rather than a weak job market, this trend reflects changing priorities. Many workers are intentionally choosing roles that better suit their lifestyle, whether that means less stress, more flexibility, or time for family.
What’s driving this trend?
- 17.7% of workers chose less demanding roles
- Only 1.7% couldn’t find a better job match
- Common reasons: work-life balance, flexible hours, personal interests
What the data suggests
- 64% of workers are tertiary-educated (vs 41.2% globally)
- Overqualification rate (19.4%) is still below global average (21.6%)
- Median monthly pay rose from $5,800 to $7,605 over 10 years
Interestingly, employers are shifting focus too—nearly 80% of job listings in 2025 prioritised skills and experience over formal qualifications.
ALSO READ: I Don’t Want to Advance in My Career—is That Bad?
That’s it for this week! Stay tuned for next week’s What’s Happening This Week to keep up with the latest in finance, business, and beyond.
This article was first drafted with the help of AI and later reviewed and refined by the author.
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