Singapore’s tech sector is showing early signs of revival in 2025, following a difficult year marred by hiring freezes and widespread layoffs across the region. According to the NodeFlair Salary Report 2025, companies have begun to cautiously reinitiate hiring activities, fuelling cautious optimism for the months ahead.
This shift suggests that the worst post-pandemic correction may be behind the sector, although uncertainty remains amid ongoing shifts in technology and workplace expectations.
Among the most impactful trends influencing the tech landscape is the growing integration of artificial intelligence (AI) into day-to-day development work.
While the report does not quantify AI’s direct effect on salaries, it offers anecdotal insights from industry leaders that point to a deeper shift in the nature of tech work.
In the report’s “Humans of Tech Q&A” section, several senior leaders reflect on how AI is reshaping workflows, priorities, and potentially the skill sets that drive compensation.
Li Hongyi, Director at Open Government Products (OGP), cautions against the indiscriminate use of AI tools.
“AI is a effective tool as long as you are clear on what problem you’re trying to solve,” he says. “Teams focused on solving problems naturally use AI effectively, while those just trying to ‘use AI’ might build frivolous things.”
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Li also notes that AI could reduce the cost of building disposable prototypes, hinting at greater efficiency in early-stage software development. This in turn may shift hiring criteria, favouring engineers who can iterate quickly and adapt to changing product demands.
At Carousell Group, CTO Igor Volynskiy observes that most engineers now use AI assistance in some form.
He suggests that AI allows developers to “move up levels of abstraction,” focusing less on code and more on user experience and system design. This could lead to a re-evaluation of how value is measured in technical roles.
Similarly, Rajat Malhotra, CTO at GXS Bank, highlights a distinction that may shape future hiring practices. “AI might replace a developer who simply codes, but not an engineer who engineers a solution,” he states.
Around one-third of GXS engineers now regularly use AI tools, which Malhotra believes improves productivity and enables more personalised product development.
These insights suggest a subtle but growing divide between roles centred on routine coding and those requiring higher-order problem-solving and systems thinking. If these patterns continue, it is plausible that future salary structures will begin to reflect this divergence, rewarding individuals who can integrate AI meaningfully into their work.
Shuyang Quek, Country Head Singapore at Padlet, reinforces the point about AI’s utility when used purposefully. “AI can be efficient if used in a way that’s fit for purpose, like writing code in well-supported languages and stacks,” she notes, underlining the importance of choosing the right tools for the job rather than following trends.
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While the NodeFlair Salary Report 2025 does not draw direct correlations between AI use and pay, the shift in discourse among tech leaders indicates that compensation trends may evolve alongside the changing nature of work. Roles that emphasise strategic thinking, user-centric design, and system-level problem-solving may become more highly valued than those focused purely on execution.
As Singapore’s tech industry continues to navigate recovery and transformation, AI’s role appears set to change not only how work is done but potentially who gets paid more for it.
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Image Credit: Alex Kotliarskyi on Unsplash
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