Recent findings from ECA International found “real salaries” for Singapore and Hong Kong will rise to 2.7 per cent and 0.6 per cent respectively. This rise will be amongst the highest in the world.
The lower rate of salary growth for Hong Kong is because of the pandemic that caused an upsurge of socio-political turmoil for China, directly affecting its economy. Apart from the real salary, inflation has been taken into account, and for China the inflation is at 2.4 per cent for 2021, that pulls down any scope for salary growth. Without the inflation, Hong Kong’s actual salary increase stands at 3.0 per cent.
About 40 per cent of organisations in Hong Kong froze salaries, and only 25 per cent will carry this freeze forward into 2021, provided the Covid-19 vaccine is discovered.
While Hong Kong reels under the pandemic-induced consequences, most of China is doing better than Hong Kong with better figures for its 2021 predictions.
With inflation in the picture, China’s overall growth is projected at 2.3 per cent. Only five countries are seen surpassing China, including Bangladesh and Pakistan.
For most employees in Macau, the salary didn’t increase this year but is expected to recover to some degree in 2021. Macau also had the highest rate of salary freeze in China. The city derives its revenue from casinos, hospitality and leisure businesses that have been severely hit by the pandemic.
Singapore’s inflation continues to remain low with an expected rise to 0.3 per cent in 2021. In 2019 the city saw a deflation of -0.4 per cent.