CapitaLand to freeze or cut pay for some staff; Singtel reviewing measures to manage manpower and wage costs

SINGAPORE — Property developer CapitaLand said on Wednesday (Feb 26) it is freezing or slashing pay for managerial and senior staff, while telco Singtel is reviewing its cost-control measures — including those for manpower and wages — as the firms take steps to deal with the financial fallout from the Covid-19 outbreak.

In a press release announcing its full-year financial results, CapitaLand said that “as a show of togetherness and solidarity” with its stakeholders, board members and senior management will take a cut in their board fee and base salary of between 5 per cent and 15 per cent from April.

It has also imposed a wage freeze for all staff at the managerial level and above.

“These measures will be reviewed after six months or when the position arising from the Covid-19 outbreak has stabilised,” CapitaLand said.

Separately, in reply to queries from TODAY, a Singtel spokesperson said that the company has no plans to downsize its operational team due to the Covid-19 outbreak.

However, the spokesperson added: “Naturally, we are monitoring the evolving situation closely to assess the overall impact of the virus threat on our business and will review measures to control costs where necessary — with manpower and wage costs among the items we are looking at.”

CapitaLand and Singtel are among the portfolio companies of state investment firm Temasek Holdings, which announced earlier this week that it was freezing salaries for all staff and that its senior management team — managing directors and above — will be allowed to take a voluntary base salary reduction of up to 5 per cent, for a period of up to one year.

Meanwhile, Singapore Airlines, which is also a Temasek portfolio company, has cut nearly 10 per cent of its capacity, frozen recruitment for ground positions and deferred spending as it deals with lower demand due to the Covid-19 outbreak.

It is understood that Temasek does not direct its portfolio companies' decision on compensation matters.