Why Manufacturing Turnover Hit 26% in Singapore in 2025, and What Employers Can Do About It

Manufacturing turnover in Singapore reached 26 percent in 2025. That figure comes directly from Reeracoen's own placement and market data, reported in our Salary Guide 2025/2026, and it sits well above what most employers in the sector would consider sustainable.

The harder question is what to do about it, especially in a year when overall wage growth is expected to moderate to 4.0 to 4.3 percent. Throwing more money at the problem is not a realistic option for most manufacturing employers this year. The data points elsewhere.

Key Findings

Sources: Reeracoen Singapore Salary Guide 2025/2026; Singapore Economic Development Board, Monthly Manufacturing Performance.

The Number, in Context

A 26 percent turnover rate means that, on average, roughly one in four manufacturing employees left their role over the course of 2025. The Salary Guide flags this specifically, alongside a broader note that wage growth is expected to slow in 2026 as companies face cost pressures.

Source: Reeracoen Singapore Salary Guide 2025/2026, Message from our Group CEO.

Put those two facts together and the picture is clear. Employers cannot expect to retain people simply by paying more, because most do not have meaningfully more to offer this year than last. The lever has to be something other than the pay cheque.

Manufacturing Is Not One Story Right Now

It is worth being precise about which part of manufacturing this affects most. Singapore's electronics and semiconductor output has been growing strongly, driven by global AI infrastructure demand, a trend we covered in detail in our previous article on the sector's AI-driven hiring boom. But that growth is not evenly spread. Singapore EDB's own monthly manufacturing data shows output in general manufacturing industries and biomedical manufacturing both contracting in some recent months, even as electronics surged.

Source: Singapore Economic Development Board, Monthly Manufacturing Performance.

This unevenness is a reasonable part of the retention story, though the Salary Guide does not draw this specific link itself, so treat it as analysis rather than a confirmed finding. Employees in sub-sectors facing production volatility are likely operating with less certainty about shift patterns, overtime, and job security than their counterparts in the fast-growing semiconductor space, which can itself drive people to look elsewhere.

Where the Pay Ceiling Actually Sits

Part of why pay alone will not solve this is structural. Across Manufacturing (Machinery) and Manufacturing (Food/Chemicals/Materials), junior-level roles such as Production Engineer or Technician sit in a basic monthly salary range of roughly 2.5 to 3.9 thousand SGD. There is limited room within that band to compete purely on compensation, especially against sectors like semiconductor R&D, where senior roles can reach 10.0 to 15.0 thousand SGD a month.

Source: Reeracoen Singapore Salary Guide 2025/2026, Manufacturing (Machinery) and Manufacturing (Food/Chemicals/Materials) tables.

What the Salary Guide Recommends

Reeracoen's own recommendation for 2026 is specific to this exact problem:

Strengthen retention efforts in sectors where high turnover rates, such as the 26 percent seen in Manufacturing in 2025, have been observed. Prioritise measures beyond monetary rewards, including clear career development pathways and flexible work arrangements.

Source: Reeracoen Singapore Salary Guide 2025/2026, Labour Market Trends 2025 and Recommendations for 2026.

In practice, this means documenting a visible path from production technician to senior technician to team lead, rather than leaving progression informal. It means looking at where flexibility is genuinely possible within shift-based work, even if it cannot look like a typical office hybrid policy. And it means being honest with your workforce about which parts of the business are growing and which are under pressure, since uncertainty left unaddressed tends to push people toward the exit on its own.

A 26 percent turnover rate is not a one-year blip to wait out. It is a structural signal that the usual retention lever, pay, is not enough on its own in this sector right now. The employers who address career pathways and workplace stability directly are the ones most likely to bring that number down in 2026.

Frequently Asked Questions

What is the manufacturing turnover rate in Singapore in 2025?

26 percent, according to Reeracoen Singapore's own placement and market data, reported in the Salary Guide 2025/2026.

Is manufacturing turnover the same across all manufacturing sub-sectors in Singapore?

Likely not. Electronics and semiconductor manufacturing has seen strong output growth driven by AI demand, while general manufacturing and biomedical manufacturing have both seen output declines in some recent months. The 26 percent figure is a sector-wide average, not a uniform rate.

Can employers fix manufacturing turnover by raising pay?

It is unlikely to be enough on its own. Overall wage growth is forecast to moderate to 4.0 to 4.3 percent in 2026, and junior-level pay bands in several manufacturing sub-sectors leave limited room to compete on compensation alone.

What does Reeracoen recommend for manufacturing employers facing high turnover?

Prioritise career development pathways, flexible work arrangements, and clear communication about job security, alongside, not instead of, fair compensation.

Where can manufacturing employers find more detail on salary benchmarks?

Reeracoen's Salary Guide 2025/2026 includes full salary tables for Manufacturing (Machinery), Manufacturing (Food/Chemicals/Materials), and Manufacturing (Electronics/Semiconductors), among other industries.

Get the Full Report

This article covers one finding from a much larger report. The complete Salary Guide 2025/2026 includes full salary tables across 15 industries and 95 job categories, plus Reeracoen's complete labour market recommendations for 2026.

Request your copy of the full Salary Guide 2025/2026

Struggling with retention in your manufacturing team? Talk to a Reeracoen consultant about building a practical retention plan.

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About the Author

Valerie Ong

Regional Marketing Manager, Reeracoen Group

Valerie leads content and market insights for Reeracoen across Southeast Asia. She works closely with Reeracoen's specialist recruitment consultants to translate hiring data, salary benchmarks and labour market trends into practical guidance for Singapore's employers and professionals. Her work draws on Reeracoen's proprietary research including the annual Salary Guide, Hiring Pulse, and Hiring Manager Survey.

Language note: This article is published in English. Reeracoen Singapore also publishes selected content in Japanese for our bilingual and Japanese-speaking professional community.

References

• Reeracoen Singapore Salary Guide 2025/2026. Reeracoen Singapore Pte. Ltd., 2026.
• Singapore Economic Development Board. Monthly Manufacturing Performance. https://www.edb.gov.sg/

 

 

Disclaimer

This article is based on findings from Reeracoen Singapore's Salary Guide 2025/2026, alongside publicly available manufacturing production data from the Singapore Economic Development Board. The findings are intended to be informative and directional rather than definitive or predictive. They should be used as a general reference and not as a substitute for tailored workforce planning advice.