Singapore’s Finance Jobs Face Pressure as Hong Kong Gains Momentum
During the pandemic, Singapore's finance job market surged while Hong Kong struggled. Many bankers from Hong Kong moved to Singapore, with banks eager to welcome them. But three years on, the momentum in Singapore has slowed, and Hong Kong is experiencing a revival.
Shifts in Regional Job Markets
Singapore’s local job market remains stable, but companies are increasingly expanding operations to nearby countries like Malaysia. Higher labor costs and strict visa rules in Singapore are pushing this trend. Junior and mid-level roles, especially in middle and back office functions, are the most affected.
Offshoring is also impacting Singapore’s finance sector. For example, Standard Chartered recently cut 80 jobs in Singapore as roles move to India. DBS Bank currently has more vacancies for operations and product professionals in India than in Singapore, signaling a broader trend within the financial services industry.
Recruitment firms describe hiring in Singapore as cautious, with new positions closely scrutinized to ensure necessity. This cautious approach reflects wider structural challenges beyond typical market cycles.
AI’s Growing Role and Job Impact
Singapore has become a hub for roles in risk management and product control over the past two decades. However, artificial intelligence (AI) now threatens many of these jobs. Earlier this year, DBS announced plans to cut 4,000 temporary "project" positions as AI takes over certain functions.
The Singapore government recognizes these challenges. Deputy Prime Minister Gan Kim Yong recently highlighted efforts to work with banks on identifying jobs affected by AI. Banks are also expected to focus on upskilling and reskilling employees to adapt to these changes.
Why Hong Kong Is Gaining Ground
While Hong Kong faces similar AI and offshoring pressures, its strength lies in front office roles like sales and trading, which are less prone to automation. Additionally, China's financial investment in Hong Kong is fueling growth.
Capital flows from China to Hong Kong have already surpassed 2024’s total, driving stock prices higher and boosting banking jobs. IPO activity in Hong Kong is at record levels, benefiting traders and other finance professionals.
As Kenneth Chow, co-head of equity capital markets in Asia at Citigroup, noted, Hong Kong is attracting a surge of international and Asian investors, creating fresh opportunities in the market.
What This Means for Finance Professionals
- Finance roles in Singapore, especially in operations and middle/back office functions, are under pressure from offshoring and AI automation.
- Upskilling in AI and related technologies could be essential to maintain career growth in Singapore’s finance sector.
- Hong Kong’s finance market is benefiting from strong capital inflows and remains a hub for front office jobs less impacted by automation.
- Monitoring regional shifts and adapting skill sets will be crucial for professionals targeting roles in Asia’s financial hubs.
For those interested in building AI skills relevant to finance, exploring specialized courses can provide a competitive edge. Resources like Complete AI Training’s finance AI tools offer practical ways to stay ahead.
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