Only 14% Singapore workers engaged at workplace, among lowest globally: Report

SINGAPORE: Singapore's workforce is among the most disengaged globally, with only 14 per cent of employees saying that they feel engaged at work, raising concerns about the city-state's future competitiveness, according to a report released on Monday.

The inaugural Singapore Workplace Report 2026, published by the Singapore Institute of Directors (SID) and US analytics firm Gallup, found that employee engagement in Singapore lagged behind the global average of 20 per cent and the Southeast Asian average of 25 per cent in 2025.

SID is the national association of company directors. It works closely with the authorities to uphold and enhance the highest standards of corporate governance.

Workplace engagement in Singapore has remained largely unchanged since falling in 2019, the report stated.

By comparison, employee engagement stood at 9 per cent in Vietnam, 25 per cent in Malaysia, 27 per cent in Indonesia and 34 per cent in Thailand in 2025.

Singapore's "chronically low engagement" may increasingly become a "strategic liability" that inhibits the economy's future competitiveness, the report said.

Speaking at the launch of the report, Minister of State for Manpower Dinesh Vasu Dash said many organisations continue to treat human capital as a human resources function rather than a strategic priority.

This approach could become a "strategic liability", he said, stressing that organisations perform better in the long run when human capital is managed with the same rigour as financial capital.

"Reframing human capital as a strategic issue requires leadership at the highest level. When human capital is treated with the same rigour and discipline as financial capital, for example, organisations make better decisions about their people, and these better decisions then translate directly into better long-term performance," the Channel News Asia quoted Vasu Dash as saying.

The study defines employee engagement as the level of involvement and enthusiasm workers have for their jobs. It assessed factors such as fulfilment of basic workplace needs, opportunities to contribute, a sense of belonging and prospects for learning and growth.

According to the report, disengagement at work may be costing Singapore billions of dollars annually through lost productivity. It cited estimates showing that low employee engagement costs the global economy about USD 10 trillion in 2025, equivalent to nearly 9 per cent of global GDP.

This is even more important for Singapore as its economy is highly services-oriented, and the impact of worker engagement is greater in service-intensive industries, it said.

Several senior corporate leaders attributed low employee engagement to factors such as global economic conditions, labour market policies, the prevalence of family-owned small and medium enterprises and Singapore's highly competitive business environment.

The study identified managers as the most important driver of employee engagement, but said they often receive inadequate support and investment.

It found that many organisations invest heavily in senior leadership development and technical training while providing comparatively little support to people managers.

Researchers also found that managers frequently lack the authority to address workplace conditions affecting employee engagement and well-being.

The study highlighted a significant generational divide, with workers below the age of 35 reporting lower engagement levels and higher levels of negative emotions than older employees.

Younger employees were less likely to be thriving at work and reported higher daily stress levels than workers aged 35 and above.

"The generational split is real and not imagined, and consequently, Singapore's employers need to respond to the unique needs of younger employees," the report said.

The survey also examined attitudes towards artificial intelligence among senior corporate leaders.

While most leaders expressed confidence that their organisations could harness the benefits of AI while managing associated risks, they were "less optimistic" about the "preparedness of the country's employees to adapt to disruptive forces such as AI adoption", it said.

The survey was conducted through telephone interviews with around 1,000 workers between June and July 2025.