SINGAPORE, May 29 -- Workers in Singapore enjoyed stronger spending power last year as inflation cooled significantly, allowing real wages to grow faster even though salary increases moderated, according to a new labour report.

Data released by Singapore's Ministry of Manpower (MOM) showed nominal wages for full-time employees, including employer Central Provident Fund contributions, rose 4.9 per cent in 2025, down from 5.6 per cent a year earlier. However, after accounting for inflation, real wages increased by 4 per cent, up from 3.2 per cent in 2024.

The improvement came as Singapore's inflation rate fell sharply to an average of 0.9 per cent in 2025 from 2.4 per cent the previous year, giving workers greater purchasing power despite...