- News>
- World
Asia to face widespread salary freeze next year: Survey
Fresh data on expected wage freeze in several countries across Asia, coupled with rising unemployment, spell bad news for policy makers seeking to stimulate consumer spending to spur economic growth next year, analysts say.
Fresh data on expected wage freeze in several countries across Asia, coupled with rising unemployment, spell bad news for policy makers seeking to stimulate consumer spending to spur economic growth next year, analysts say.
Companies around Asia are predicting widespread salary freezes in 2002, according to a just-released wage survey conducted between August and October by management consultants Hewitt Associates Llc. The survey was conducted in Australia, China, Hong Kong, Malaysia, the Philippines, Singapore, South Korea, Taiwan and Thailand.
The outlook is particularly gloomy in Hong Kong, where 30 per cent of survey respondents plan to freeze wages next year, The Wall Street Journal reported quoting the survey. Meanwhile, unemployment rates in many Asian countries have continued to rise since the region's 1997-1998 financial crisis. The percentage of eligible workers that are unemployed in Singapore, for example, climbed to three per cent in September 2001 from 1.9 per cent in March 1998. In Hong Kong, unemployment has increased to 5.5 per cent from 3.3 per cent over the same period. Economists expect Asian policy makers to continue to cut interest rates and push fiscal-stimulus packages early next year to help encourage domestic spending and offset weakness in key export markets. But as wage growth flags and unemployment mounts, such measures may have limited impact, analysts say.
Bureau Report
Companies around Asia are predicting widespread salary freezes in 2002, according to a just-released wage survey conducted between August and October by management consultants Hewitt Associates Llc. The survey was conducted in Australia, China, Hong Kong, Malaysia, the Philippines, Singapore, South Korea, Taiwan and Thailand.
The outlook is particularly gloomy in Hong Kong, where 30 per cent of survey respondents plan to freeze wages next year, The Wall Street Journal reported quoting the survey. Meanwhile, unemployment rates in many Asian countries have continued to rise since the region's 1997-1998 financial crisis. The percentage of eligible workers that are unemployed in Singapore, for example, climbed to three per cent in September 2001 from 1.9 per cent in March 1998. In Hong Kong, unemployment has increased to 5.5 per cent from 3.3 per cent over the same period. Economists expect Asian policy makers to continue to cut interest rates and push fiscal-stimulus packages early next year to help encourage domestic spending and offset weakness in key export markets. But as wage growth flags and unemployment mounts, such measures may have limited impact, analysts say.
Bureau Report