The telco company is the latest to implement the cost-cutting measure
Singtel is the latest Singapore-based company to implement an organisation-wide salary freeze in light of rising uncertainty caused by the ongoing COVID-19 outbreak.
Operational and support staff at the telco company will be exempt from the freeze.
In a memo to employees, group chief executive Chua Sock Koong said that ongoing business challenges will require the company to “strengthen our financial resilience”.
“Times like these require us to tighten our belts, both as a company and as workers, to ensure the long-term competitiveness of our business,” Chua said.
The CEO added that the company needs to ready itself for uncertain times – not just due to the impact of COVID-19, but predictions of an overall weak economy, reported The Straits Times.
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While the Singapore government is bracing itself for “the possibility of a recession”, a recent McKinsey report stated that “a range of outcomes is possible” for the global economy and that “decision makers should not assume the worst”.
The report, published on March 9, shared three possible economic scenarios: a quick recovery, global slowdown, and global pandemic and recession.
In a global slowdown, small and mid-sized companies would be affected “more acutely” – and not all sectors will be equally affected.
The third and most dire scenario is dependent on how well countries manage or contain the virus. While transmission numbers have been rising outside of China, they still remain localised to areas in affected countries, cited the report.
Additionally, countries have also been implementing “strong countermeasures”, be it through efforts by the government and/or corporations.
The report concluded that the COVID-19 outbreak “is a story with an unclear ending”. Besides the tragic human impact, companies have an “imperative to act immediately” to protect employees, address business challenges, and help mitigate any risks.
