PARKWAY Holdings, the owner of one of Singapore's largest health-care providers, is cutting 4 per cent of its workforce here in Singapore and slashing the salary of its top management by 15 to 35 per cent.

'The group is not immune to the current global economic challenges and has decided to initiate additional pre-emptive measures to enable the group to navigate through current market challenges,' the company said in a statement.

The Group employs 3,700 staff in Singapore, and 9,000 worldwide, meaning about 148 people will lose their jobs. The company said the cuts would come across all sectors of the business.

A spokesperson for the company said no nurses will be retrenched, while doctors are not hired by the company and so will also not be affected.

The company will also reduce the salaries of senior management including the chief executive officer and chief financial officer, by 15 to 35 per cent and salaries of middle management by 5 to 10 per cent.

Directors of the company have also volunteered to waive their fees for the current year.

These measures were taken as even the relatively recession-resilient health-care sector is beginning to feel the heat from the global economic crisis.

Mr Richard Seow, chairman of Parkway Holdings said: 'The regional healthcare sector is not immune to the effects of a volatile global economy.

'While Parkway's regional health-care business remains sound and long term industry fundamentals remain intact, we are taking necessary and prudent actions to prepare the company for a more difficult and challenging market environment ahead.'

The company said last month that the number of medical tourists at Parkway hospitals in Singapore had dipped 5 to 7 per cent from September to November, and that the number of medical tourists could fall by 10 per cent.