Singapore’s accounting industry is grappling with a significant manpower shortage, driven by declining interest among students and increasing demand for accounting professionals. Over the past five years, there has been a 10% decrease in accountancy degree students at universities in Singapore. This trend is concerning, especially as the demand for accounting jobs is projected to reach up to 7,000 by 2025.
The shortage is further exacerbated by the profession’s modest starting salaries and long working hours, which deter potential entrants. In 2023, accountancy graduates from Singapore’s autonomous universities earned a median gross monthly starting salary of S$3,800, lower than the overall median of S$4,313. Smaller firms are especially affected, struggling to attract and retain talent amidst stiff competition from larger firms and more lucrative industries.
To tackle these challenges, the Accountancy Workforce Review Committee (AWRC) has proposed several strategies, including raising starting salaries, offering faster qualification pathways for polytechnic graduates, and enhancing the recognition of the Chartered Accountant (Singapore) designation.
As a result of this talent crunch, the cost of hiring in-house accountants is steadily increasing. Companies now face higher salary expectations, greater competition for qualified talent, and increased recruitment costs — pushing many businesses to consider outsourcing as a more cost-effective alternative.
