The Singapore Institute of Directors (SID) and Gallup have unveiled the Singapore Workplace Report 2026, revealing a concerning engagement rate of just 14% among Singapore’s workforce. This figure is significantly lower than the Southeast Asia average of 25% and the global average of 20%, with younger workers under 35 showing an even lower engagement rate of 10%.
In 2025, 86% of Singapore’s workforce was disengaged, costing the economy an estimated US$73.6b (approximately S$95b) in lost productivity annually. With GDP growth forecast to slow to 2–4% in 2026, the report argues that low engagement is transitioning from a cultural concern to a strategic liability.
The report, launched on 22 June, identifies four key priorities for Singapore’s leaders: enhancing manager capability, aligning organisational culture with employee experience, repositioning HR as a strategic function, and maximising talent density across all age groups.
A significant finding is the generational engagement gap, with younger workers experiencing higher stress levels and lower engagement compared to their older counterparts. The report attributes this to structural conditions such as high living costs and limited career pathways. It also highlights the impact of generative AI, which is reducing entry-level opportunities that traditionally helped build foundational skills.
The report stresses the role of managers, with 70% of team engagement variance linked to direct management. However, Singaporean leaders rated their organisations’ manager effectiveness poorly. Kanika Singh, Regional Director of Gallup Singapore, stated, “The generational engagement gap is a management gap.”
To address these challenges, SID is collaborating with Singapore Management University to launch a new module on Strategic Human Capital Stewardship. This initiative aims to equip directors with the tools needed to govern workforce issues strategically, ensuring long-term organisational resilience and performance.
