8 Ways to Prepare for a Recession in Singapore

With increasing interest rates and other political matters, the risk of a recession is steadily growing. Prime Minister Lee Hsien Loong even urged Singaporeans to brace for “economic challenges” as the financial crisis could strike from 2022 to 2024. 

While Minister of State for Trade and Industry Alvin Tan has expressed it’s unlikely Singapore will go into a recession or stagflation in 2023, there are still many risks that the global economy will face.

With such a threat to the world and potentially Singapore, here are ways to start preparing for a downturn, from proper financial planning to skills to make your career recession-proof.

Related article: Don’t Make Rash Decisions About Your Career Now. Here’s How Inflation Can Affect Singapore’s Employment and Salary Market

Know What’s Happening in Your Industry

Before you ready yourself for a recession, you must stay updated on current events and developments not just within the economy but in the industry you’re working in. 

You might want to subscribe to credible news sources such as major media outlets or follow opinion leaders or experts online to get a feel of what’s happening and how they’re adapting to any changes. This way, you're informed about potential disruptions that may impact your career.

Expand Your Skill Set

While you may be a valuable contributor to your present company, learn new skills outside what you are currently doing professionally. These days, you can find many courses available online for your convenience. You can even learn by simply watching videos on YouTube. Consider investing in a new and in-demand capability that you could potentially do on the side or venture into should your job be at risk.

Make sure to be committed as you train these new skills. Look for programmes you are sincerely interested in so you don't get bored and drop out eventually. You never know when acquiring new knowledge or know-how can come in handy should a recession occur.

Reach Out to Your Network

You know what they say, it’s about who you know. When a recession strikes, you may need to reach out to your contacts for job leads or income-generating ideas. If you’re fortunate enough, you may be connected with someone in a managerial or recruitment position who can either hire you or put in a good word for you.

Amid a pandemic that for the most part hurled most employees into a work-from-home or hybrid setup, it’s easy to lose touch with people we used to engage with on a more frequent and personal basis. Don’t let these relationships go to waste. Consider inviting for a quick catch-up, or ask for their opinion on something. 

Related article: 10 Qualities You Need to Form Great Friendships at Work

Set Aside Money for a Rainy Day

A recession very much counts as an emergency, and should that time come, you should have an emergency stash of money to tide you over for any unforeseen circumstances. With inflation jacking up prices of commodities, your salary loses its value – as if you suffered a drastic pay cut. 

The sad truth is you need to keep paying for food, rent, utilities, and other things even as goods become more expensive. Make sure you have at least six months’ worth of your monthly income in your bank account so you have enough to keep you afloat until you discover additional ways to earn money.

Get Additional Exposure

As companies may face the tough choice of letting employees go, you must assert yourself as someone indispensable to your organisation. It decreases your chances of getting axed.

The key is to put your best foot forward and strive to excel even more at work. Emphasise your strengths in the workplace by volunteering for projects, speaking up more during meetings, and staying up-to-date with the events within the company. 

If you feel extra bold, ask your boss to let you tag along in conferences with higher-ups so you can learn more about holding a higher position or accepting more responsibility. This strategy hints to your boss that you are gunning for a promotion or a bigger role.

Brush Up on Your Interview Skills

How long has it been since you sat down to be interviewed? While you may feel extra confident with your work experience, it never hurts to put yourself in the same shoes over again. With the possibility of layoffs during a recession, you won't have a sure way of knowing whether or not you'll need to submit a resumé again.

It doesn't matter if you're actively looking. Try practising your interview skills by responding to an application invitation or rehearsing with a friend. This practice not only helps you sharpen your conversation skills but also trains you on how you want to present yourself in a new and more impressive light to an employer.

Come Up With a Side Hustle

If you’re comfortable with your current job, chances are, you might not be even entertaining the possibility of losing it or suffering a pay cut. But with a potential recession looming ahead, you may want to consider taking on a side hustle to add to whatever you’re already earning.

A side hustle does not necessarily mean doing the same job or performing a similar role. Even better, it could be something you can't do at work. Think of a personal hobby, pastime, or interest that you could happily spend hours doing or talking about. It could be baking, photography, organising events, or tutoring. A side hustle allows you to dabble in activities that excite you, plus possibly launch that passion project you keep postponing. The best part is that, on top of having a good time, you also earn extra cash.

Related article: Part-time jobs: working in the new normal

Add a Personal Touch

With many interactions being relegated online, you may be losing out on the warmth of friendships at work. The idea is to enrich your existing work relationships as a recession can be mentally and emotionally taxing. 

Let’s face it: It’s hard to maintain bonds at the office when you message each other more via chat groups or email. Nothing compares to that random conversation by the water cooler or grabbing a coffee together. That being the case, it’s good to know that there are ways you can still add that personal touch.

Don’t underestimate the power of emojis. A simple smiley at the end of an email or in your chats helps establish the exchanges as friendly. Also, you can express your messages with a virtual gesture or expression. Don’t let the distance discourage you too from setting up online get-togethers. It can be as simple as enjoying a cup of tea together now and then with your teammates to game nights after work.  

We hope these tips provide practical ways to prepare for a recession. Whether such a financial crisis happens or not, these approaches will not just help you potentially generate additional income but also enrich your career and work relationships as well.

Visit our Career Resources page or download JobStreet’s app available on the App Store and Google Play for more tips on navigating your career. It also offers expert insights and advice to help you care for your mental health and emotional well-being at work. #LetsGetToWork