Higher Starting Salaries for Fresh Graduates

A recent survey released by Hay Group last week revealed that fresh graduates are drawing higher starting salaries compared to 2011. Those without Honors drew S$2, 678 while those with second upper Honors and higher drew S$2, 766 and S$2, 882 respectively. It also revealed that those working in the engineering sector drew the highest average salaries of $2,777 without honors. Jobs in research & development and merchandise operations ranked second and third, with the graduates earning S$2, 764 and S$ 2, 742 a month, respectively.

I am actually quite surprised by the survey as I always assumed that those working in the finance sector are usually paid well and would be among earn highest earners. But the results of the survey showed otherwise.

Based on the results, I think engineers are still in demand and would still command respectable starting salaries. I am heartened by this as my degree is engineering and I hold an engineering job. I would like to think that my engineering career can still last for another 10 -15 years, unless I decided to do a career switch or switch to entrepreneurship.

Another interesting fact is that the starting salaries for non-honors engineering graduates are quite high (at $2,777). I got an engineering degree with honors in 2005 but my starting salary was $2600. Even if you factor in inflation, the starting salaries seem quite high for a non-honors graduate. So I think this reflect the strong demand in engineering graduates in Singapore.

Yesterday, Minister for National Development cautioned Singaporeans to be prudent in buying properties and not be induced by 50 year housing loan (offered by UOB).

He mentioned that fresh graduates should be realistic with their incomes and that for their first properties, they should not buy a 5 room or bigger flats or private properties.

On this respect, I totally agreed with the Minister. Fresh graduates, when considering buying a property, should not just only look at the downpayment and monthly installments.

They should also do a thorough financial planning and not be seduced by the 50 year loan. They have to realize that the trade-off for a more affordable monthly installment is the huge interests accumulated over 50 years. So ultimately, it is important to examine the term and conditions offered in the 50 years housing loan before committing to such loans.

Magically yours,

SG Wealth Builder