Agoda's Layoffs Spark Outrage

Agoda's recent decision to lay off approximately 50 employees has stirred significant controversy in Singapore. Allegations emerge that the company's severance agreements contained clauses preventing workers from reaching out to the Ministry of Manpower (MOM) or unions—warnings that could jeopardize their severance pay.

In response, the MOM has launched an investigation into these claims. Unions, including NTUC and SISEU, have characterized the clauses as "deeply concerning" and called upon Agoda to amend its approach to retrenchment.

Impact and Industry Response

The layoffs predominantly affected customer support positions in cities like Singapore, Shanghai, and Budapest. While Agoda attributes these cuts to operational efficiency, critics assert that they were driven by quotas without sufficient transparency.

The National Trades Union Congress (NTUC) insists that retrenchment procedures must go beyond mere legal compliance; they should also uphold respect and fairness. Unions are stepping up to support the affected workers, regardless of membership status.

MOM's Probe Could Change Severance Norms

Agoda's reluctance to comment on the allegations has intensified public skepticism, and the outcomes of the MOM's investigation could redefine how severance agreements are crafted in Singapore. This case highlights the urgent need for clearer ethical guidelines surrounding retrenchments and pathways for dispute resolution.

Job Market Disparities Revealed

According to Singapore's Q2 labour market report, a growing disconnect between job availability and accessibility has emerged. While the number of job vacancies exceeds the number of job seekers, those displaced from their roles face prolonged re-employment periods.

The six-month re-entry rate for retrenched workers has dropped to 56.3%, down from 60.6% in Q1, suggesting that while unemployment isn’t the sole issue, job searches are becoming increasingly prolonged.

Economic Landscape and Job Market Trends

Total employment witnessed a modest increase of 10,400, and retrenchments remained relatively low at 3,540. However, the MOM has cautioned that hiring activities may decelerate, and wage growth could stabilize due to global economic pressures.

Employers are reportedly becoming more selective, with job vacancies now at 76,900. Sectors like ICT and professional services are experiencing softening demand, while health and finance sectors continue to thrive.

GST Hike Spurs Tax Revenue Surge

In financial news, Singapore's recent Goods and Services Tax (GST) hike has resulted in a substantial revenue increase, with FY2024/25 GST revenue reaching $20 billion—up from $16.6 billion the previous year. The rate adjustment, effective January 1, 2024, from 8% to 9%, has contributed significantly to this boost, coinciding with heightened consumer spending.

GST now represents 22.6% of the country’s total tax revenue, following corporate income tax, which remains the largest contributor. Despite the hike, compliance rates have remained impressively low at 0.66%.

Trade Initiative Amidst Global Uncertainty

Singapore has partnered with 13 other small and medium-sized WTO members to establish the Future of Investment and Trade (FIT) Partnership. This coalition aims to promote open and fair trade in response to rising concerns over protectionist policies and trade fragmentation. Deputy Prime Minister Gan Kim Yong emphasized the role of smaller economies in shaping a resilient global trading framework.

The inaugural ministerial meeting will take place in November, where concrete initiatives will be unveiled. The partnership is designed to adapt to the rapidly evolving global economic landscape.

Concerns Over Construction Safety in Singapore

In a tragic incident, a 52-year-old construction worker was killed after being trapped between two walls at an Upper Changi site. He was manually digging when the retaining wall collapsed. Emergency responders confirmed his death on the scene.

Although the Ministry of Manpower and the Building and Construction Authority (BCA) are investigating, preliminary assessments found no immediate structural risks. The incident raises critical questions about safety practices within the construction sector.

Just days earlier, another incident involving a toppled bore piling machine prompted MOM to reiterate the importance of structural integrity and safety during construction activities. Singapore recorded 76 construction-related fatalities and serious injuries in the first half of 2025, necessitating stricter enforcement measures.