Singapore Tourism board has approved 4.4 billion rupsiah in bonuses for Singapore tourism and tourism board staff, with the company providing some of the most lucrative bonuses in Asia.
Singapore Tourism’s (STB) top brass will get a total of 4.2 billion rUPiah ($5.1 million) in bonuses, a 2.4 per cent increase from the previous year.
The company said the bonus will help attract more visitors and boost its revenues.
STB CEO Tan Seng Keng said in a statement the board’s board decided to approve the bonuses to ensure that the company can meet the demands of its customers, including those who use its facilities for tourism.
The bonuses come as STB faces growing pressure to attract more tourists and boost revenue as it strives to attract a bigger share of tourists to the country.
STB chief executive Tan Sengu Keng.
Source: Bloomberg News/Bloomberg via Getty Images Singapore Tourism has struggled to keep up with the pace of growth of its business, which has slumped from an annual growth rate of 6.7 per cent in 2015 to just 1.5 per cent last year.
In 2017, it suffered its worst-ever annual loss, accounting for 2.6 per cent of the company’s $9.3 billion in revenue.
Last year, the company said it would slash staff by 50 per cent to reduce costs.
STBs staff has also been hit hard by the financial crisis.
Last month, STBs board cut its workforce to 860,000, a 10 per cent cut from the current 830,000.
STs CEO Tan said in May that the cuts would result in more staff reductions.
The cuts will also hit the bottom line of the business, with STBs operating income down 16 per cent compared with a year ago.
ST’s shares rose 1.2 per cent on the news.
“We believe that STB has a strong future and that the time to change has come,” STB chairman Tan Sesiang told a news conference on Wednesday.
Last year, STB received about $9 billion in bonuses from its employees, including bonuses for its top management, as the company struggled to attract tourists and keep up its revenue.
In 2018, STs top brass received a total $4.3 million in bonuses.
The total is 1.7 times more than the previous fiscal year, when the company received $2.2 million in bonus.
For the first time in a decade, ST was able to cut staff by half last year to reduce its costs, while also providing better value to customers and boosting its earnings.
As of the end of April, ST received about 3.3 per cent more revenue than the year before.
Its annual profit fell from $7.8 billion in 2017 to $5.2 in 2018, while its profit margin stood at just 0.5 percent.
Despite a sharp downturn in tourism numbers, ST has enjoyed a comfortable financial performance.
In the last five years, the number of tourists visiting Singapore rose by 40 per cent, to more than 10 million visitors a year.
ST saw a net profit of $924 million in 2018.
Source: Bloomberg/Getty Images In recent years, Singapore has also faced growing criticism from Chinese officials over its handling of the countrys financial crisis, with some critics questioning whether Singapore has a future in the region.