Singapore - Top executives have been most affected by the wage freeze, a widely-adopted measure taken by companies to cut costs and retain employees.

A global survey conducted by Hay Group across 2,000 companies from 88 countries last month reports Singapore as the country hit hardest by the economic downturn in South East Asia. Eighty percent of the Singapore respondents predict that they would not be able to hit their business targets, compared to the 21% in a previous Hay Group survey in November 2008.

Reward practice leader for Hay Group in Asia, Kala Kularajan, says  top executive's salary packages make up a large portion of the company's salary budget, it is "understandable that the top executive’s salary increases are reduced more than other employees" when the economy worsens.

The report also show Singapore as registering a 0% base salary increase, with clerical level and high-performing employees as they only two groups of exception toreceived modest pay rises. Many companies believe that the downturn has the greatest bearing on clerical level workers,and the nominal pay increase is used to balance the cost of living. 

As many organisations feel business results will be worse than targeted, 26% out of the companies have also eliminated training and development programmes.

Kularajah states that in addition to facing wage freezes, low salary increases and wage cuts, employees will have to "contend with possible job losses as companies have been forced to restructure".

Countries in the South East Asia region like Malaysia, Thailand and Indonesia may be slightly more positive, but they are also intending to take conservative measures in anticipation of a more severe impact on the economy. Almost 40% of companies in Indonesia plan to decrease salary increments, while 22% will implement wage freezes.