Salary increase frozen for promotions. Pay cuts for senior management.

For some employees waiting for good news on the increment for 2020, they may be worried. COVID-19 is really starting to wreck havoc to many economies. Many governments have announced stimulus measures too. Stimulus is coming. Please hold on In fact, my orders through Shopee to be shipped from China is already delayed for over 2 weeks and there has been no further updates. I am not rushing to get it. Just let the Chinese government do their best and ensure COVID-19 is under full control soonest possible instead.

Meanwhile one prominent organisation has announced a company-wide salary freeze as well as asking the senior management to take voluntary pay reductions for up to a year. It has 800 employees from some 30 nationalities across 11 offices based on its latest annual report.

Article in Temasek Holidngs Pte, Singapore’s state-owned investment firm has announced that it will stop all raises and salary increases linked to promotions for a duration to be determined by market conditions. Besides that, the firm will also introduce partial cuts to the annual bonuses of senior management as well as asking them for a voluntary pay reductions by as much as 5% too.

This is not the first time such a measure has been taken. Temasek took similar measures during the SARS outbreak in 2003 and during the global financial crisis in 2008. Temasek has 26% of its investments in China as at March 2019. Thus, COVID-19 would have affected its portfolio negatively. Singapore has just lowered its growth outlook for 2020 to a range of -0.5% to 1.5% as it has suffered hits to tourism and trade. Please read the full Article in

Seriously, I think this measure is only temporary. We should be able to beat COVID-19 in the near future and hopefully we have a V-shaped recovery starting from China? V-shaped recovery for China from COVID-19 (click to read here) For the rest of us, hopefully we did save enough in case our increment and bonus is also going to be delayed for a while. Unforeseen circumstances may happen, always be prepared, financially. Happy understanding and please continue to spend if necessary yeah. The economy needs some of your salaries as well.

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