- Increasing Demand: Singapore is facing a growing demand for accountants, with projections suggesting a need for up to 7,000 professionals by 2025. Despite this demand, there has been a noticeable decline in interest among Singaporeans in pursuing accounting careers.
Current Trends in Accounting Education
- Decline in Students: There has been a 10% drop in students pursuing accounting degrees over the past five years. This trend is concerning, particularly as it contrasts with the increasing demand for accounting jobs and may lead to a potential talent shortage.
- Impact on Smaller Firms: The declining number of graduates in accounting and auditing exacerbates talent shortages, especially impacting smaller and medium-sized accounting practices. These firms are facing intensified competition from larger industry players, notably the Big Four firms.
Government and Industry Responses
- Government Initiatives: Recognizing the severity of the situation, the Singaporean government has formed a task force to enhance the accounting profession’s attractiveness and address manpower challenges.
- ISCA’s Awareness Program: The Institute of Singapore Chartered Accountants (ISCA) has launched a $1 million program to raise awareness about the accounting profession, aiming to inspire renewed interest and cultivate the next generation of accounting professionals.
- Private Sector Involvement: Deloitte plans to hire an additional 3,000 professionals in Singapore over the next five years, with a significant portion contributing to regulatory services. Similarly, KMPG is investing $50 million over five years to enhance its financial services, innovation, and ESG capabilities.
Potential Future Developments
- Emerging Roles and Salaries: The momentum in corporate sustainability is leading to new roles, such as Chief Finance and Sustainability Officer, which could make the accounting profession more appealing. Salary ranges for various accounting roles in Singapore vary based on experience and expertise.
Conclusion
The contrasting trends of rising demand and declining interest in accounting careers in Singapore highlight a significant challenge for the industry. Strategic interventions by the government and private sector are crucial to ensure the sustainability and vibrancy of Singapore’s accounting market.
