Singapore has felt the impact of the recent spate of lay-offs in the tech sector. Employees have been hit on two fronts, retrenchments from global giants like Google, and from regional heavyweights, like Shopee. But despite the cutbacks, niche skills in areas such as AI and cybersecurity remain in high demand within the tech industry. CGTN's Miro Lu reports.

Singapore authorities say that tech companies slashed 1,270 jobs between July and November last year. Recruiters estimate that another 1,000 job cuts took place in the first quarter this year. 

WEIYI NG Assistant Professor, Strategy and Policy, National University of Singapore Business School "The pandemic ended, so whatever perceived demands for certain services like e-commerce, logistics, etc - the demand dropped. And when the demand drops, when interest rates go up, the venture money dries up, the layoffs happen."

Instead of hiring contract workers for greater flexibility, companies overcommitted by hiring full-timers with exorbitant salaries, often to stop them from joining competitors.

FAIZ MODAK Associate Director, Tech and Transformation, Robert Walters Singapore "A lot of firms basically overhired, invested in a lot of projects. So what we are seeing is not necessarily a downsizing but right sizing."

Beyond layoffs, recruiters say companies could look at remote hiring as a cost cutting strategy.

ETHAN ANG Co-Founder, Nodeflair "In the past it is all about assembling in one location, but right now if you start to think and COVID has really accelerated that thinking that talent are everywhere in the world, you don't have to just compete with talent here in Singapore, companies can basically tap into a global talent pool at much lower cost and still achieve the product dream."

Despite the cutbacks, observers are confident that Singapore will remain a tech talent hub in the long term.

FAIZ MODAK Associate Director, Tech and Transformation, Robert Walters Singapore "The government actually here is investing a lot in tech, so the examples are this financial district coming up in Punggol in the east which is going to give rise to 28,000 jobs over the next five years."

In fact, even in the short term, companies are investing heavily in niche skills such as AI, data science, data analytics and cybersecurity.

MIRO LU Singapore "It's unclear whether the layoffs will continue in this part of the world, but the digital economy in southeast Asia is expected to surpass 300 billion US dollars in the next two years. So the demand for tech talent will remain relatively high in Singapore and beyond. Not only from tech companies but also from other sectors that are in the midst of their digital transformation. Miro Lu, CGTN, Singapore."