SINGAPOREANS can still expect to enjoy salary increases next year, despite the economic downturn, but increments will be somewhat smaller than this year's.

Human resource consultancy Mercer Singapore yesterday released its salary projections for next year after polling more than 230 firms based here, including multinational corporations.

The poll last month found that, on average, base-salary increments will drop from 5.1 per cent this year to 4.2 per cent next year. The biggest cuts in pay rises will be felt in banking, property and electronics manufacturing, which have all been hit hard by the current slowdown.

'If you look at the sectors here, it is typically electronics manufacturing and property that are not doing well, and banking and finance are also becoming conservative as a result of the global financial crisis,' said Mr Ajit Nambiar, Mercer Singapore's head of information product solutions.

The survey found that increments in the banking sector are likely to be cut from 6.1 to 4 per cent; in property, from 5.1 to 3.3 per cent; and in electronics manufacturing, from 4.4 to 2.9 per cent.

'These are typically the three industries that are relatively under pressure, and that is reflected in the decline of salary increases,' said Mr Nambiar.

He added that Mercer conducted the latest survey to keep clients updated on recent developments in the wider economy and pay trends.

'In the last three months, because of the economic crisis, there was a significant downturn and some industries felt the impact,' he said.

'Some of our clients had asked us to run a salary-increase survey to provide them with a snapshot to better understand if salary increases are, by any chance, coming down.'

Last month, the Ministry of Trade and Industry (MTI) revised its economic growth outlook for next year, saying that the economy could contract by as much as 1 per cent or grow by up to 2 per cent next year, depending on the depth and length of the recession.

MTI, however, also said it expects the current slowdown to intensify next year, and warned that some key sectors such as financial services, electronics and property may experience 'weak or no growth'.

It is under those dark clouds that companies will start to tighten their belts, resulting in a weakening trend for salary increments, said Mr Nambiar.

'Next year will be challenging and that's when companies will probably be more conservative in terms of increases in salary,' he added.

Separately, global recruitment agency Robert Walters released its market update yesterday, which showed that it is not all doom and gloom here, as jobs are still flowing in some industry sectors.

Buoyed by growth from the first half of this year, the engineering sector should have enough momentum to carry it through to next year in terms of adding fresh jobs, it said.

The engineering sector includes work in the aerospace, building and construction, chemicals, energy, marine, oil and gas, petrochemical, and pharmaceuticals industries.

'We envisage these industries - led by government-initiated projects such as the integrated resorts, marine offshore, Seletar aerospace hub and renewable energy - will continue to grow throughout next year, despite the recent economic slowdown,' said Robert Walters.

Also, demand for human resource professionals remained strong in most industry sectors, including information technology, telecommunications, property, energy, health care, retail, manufacturing, and hospitality.

'There continues to be a shortage of solid HR business partners with strengths in talent management at the middle to senior levels,' said Robert Walters.

However, the report also forecast a tough year ahead, saying: 'We foresee next year to be a challenging year with the real economy feeling the effects of the global financial fallout.'

franchan@sph.com.sg

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'What the economists are telling us is that next year is going to be tough, and the recovery will happen only some time in the early part or the second quarter of 2010.'

Mr Ajit Nambiar, Mercer Singapore's head of information product solutions