Singapore businesses are taking a more measured approach to workforce expansion while increasing their focus on artificial intelligence, technology and operational efficiency, according to new research from Reeracoen Group and Rakuten Insight.
Singapore’s employers are taking a more selective approach to hiring while continuing to invest in artificial intelligence and technology, as businesses prepare for longer-term growth amid changing economic conditions.
The findings come from The Great Restructuring: ASEAN Consumer & Business Pulse Survey 2026, published by Reeracoen Group in partnership with Rakuten Insight. The research covers six ASEAN markets and examines business sentiment, workforce decisions, technology investment and consumer behavior.
Among Singapore businesses reporting improving revenue, 52% said they were continuing to hire selectively, while 23% were expanding their overall headcount. The figures suggest that organizations with stronger financial performance are not necessarily returning to broad-based recruitment. Instead, they are concentrating hiring around capabilities considered important to future productivity and growth.
That approach reflects a wider shift in HR strategy from volume hiring toward skills-based workforce planning. For employers, the challenge is increasingly to determine which roles and capabilities have the greatest business impact before committing to additional headcount.
AI investment becomes a workforce strategy
Singapore stood out across the six ASEAN markets surveyed for its focus on AI and technology as a source of business growth. One-third, or 33%, of Singapore businesses identified AI and technology as a top growth opportunity, the highest proportion recorded among the markets in the survey.
The technology focus extends beyond generative AI and employee-facing applications. Operational efficiency was identified by 40% of businesses as a key priority, while 26% cited supply chain diversification.
Together, those figures point toward technology investment being viewed as part of a broader operating model rather than as an isolated IT initiative. Automation, workforce planning, analytics and digital processes can potentially help businesses increase output without relying exclusively on larger workforces.
For HR teams, this creates a more complicated planning environment. Technology adoption can change the skills required for existing roles while simultaneously creating demand for employees who can manage AI-enabled workflows and digital systems.
The survey also found a notable connection between AI and employee mobility. Only 13% of Singapore-based workers surveyed said they were interested in changing careers, the lowest share among the six ASEAN markets.
For employers, that relative stability can provide an advantage. A workforce that is less inclined to move may reduce some recruitment pressure, but organizations still need to ensure employees have opportunities to develop as technology changes their jobs.
AI is influencing the workers who are considering change
Among the comparatively small group of Singapore workers considering a career change, 32% identified AI and automation as their primary motivation. That was the second-highest proportion among the six markets surveyed, behind Vietnam at 39%.
The contrast is significant. Singapore’s overall workforce appears relatively stable, yet AI and automation are becoming an important factor for employees who are considering changing careers.
That could place greater emphasis on internal mobility, reskilling and employee experience. Rather than treating AI adoption purely as an automation project, HR leaders may need to consider how technology affects job security, career progression and the skills employees believe they need to remain competitive.
This is consistent with a broader labor-market trend in which employers are attempting to combine technology adoption with workforce capability development. The World Economic Forum’s Future of Jobs Report 2025 estimated that 39% of workers’ existing skill sets are expected to be transformed or become outdated over the 2025–2030 period, highlighting the growing importance of reskilling and upskilling.
A selective labor market
Reeracoen describes Singapore’s labor market as one characterized by strategic pragmatism. The survey’s employment findings support that characterization: companies are selectively adding capabilities while workers show relatively limited appetite for career changes.
For HR technology providers, the environment creates demand for tools that can help companies identify skills gaps, forecast workforce requirements, improve productivity and support employee development.
It also reinforces the role of AI in HRTech. Recruitment platforms, workforce analytics systems, learning technologies and employee experience tools are increasingly expected to provide more than administrative automation. They are becoming part of how businesses decide where to invest in people and technology.
The Singapore findings therefore point to a workforce strategy built around balance rather than rapid expansion: hire where capabilities are critical, automate where appropriate, and invest in technology that can improve operational productivity.
For enterprises, that combination could prove more sustainable than either aggressive hiring or technology investment alone.
Market Landscape
Singapore’s workforce technology market is developing around the intersection of AI, skills-based hiring, workforce analytics and operational efficiency. Employers appear to be balancing relatively stable employee behavior with targeted recruitment and technology investment.
The trend creates opportunities for HR SaaS providers offering talent intelligence, recruitment automation, skills management, employee analytics and AI-enabled workforce planning. It also increases pressure on vendors to demonstrate measurable productivity gains rather than simply adding generative AI features.
The regional picture is similarly important: Singapore’s 33% AI and technology growth-opportunity figure was the highest among the six ASEAN markets surveyed, positioning the country as a notable market for enterprise AI and workforce technology adoption.
Top Insights
- Singapore employers are favoring selective hiring, indicating that workforce expansion is increasingly centered on critical capabilities rather than broad headcount growth.
- AI and technology rank as Singapore’s leading identified growth opportunity, reinforcing the connection between digital investment, productivity and workforce strategy.
- Only 13% of Singapore workers surveyed are considering career changes, making the country’s workforce the most stability-oriented among the six ASEAN markets.
- Among workers considering career changes, 32% cite AI and automation as their primary motivation, highlighting technology’s influence on employee mobility.
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