Software engineers in Singapore experienced a 3.3% salary increase in 2024, rebounding from a minor dip in 2023.

Meanwhile, salaries for AI specialists – those working in machine learning (ML), natural language processing (NLP), and other generative AI roles – saw a decline of up to 2.4%.

This shift, captured in NodeFlair’s 2025 Asia Tech Salary Report, points to evolving enterprise strategies: instead of building complex AI systems in-house, companies are adopting off-the-shelf AI tools such as OpenAI’s solutions and reallocating resources to software engineers who can adapt these tools to business-specific needs.

In parallel, salaries for product managers and DevOps engineers rose, while pay for cybersecurity professionals declined.

Companies are gravitating towards tech roles that support business agility, product innovation, and efficient integration of emerging technologies.

What Singapore’s tech salary trends mean

The 2025 Asia Tech Salary Report reveals a telling shift in the tech labour market. While global headlines may scream AI boom, the nuanced truth for HR leaders is that not all AI-related talent is in demand – at least not in the way many of us expected.

Read: Hiring remains strong in Singapore

1. Software engineers are back in the spotlight

Software engineers saw a salary bump in 2024, indicating renewed demand. This is partly because companies are choosing off-the-shelf AI solutions, such as OpenAI APIs, over building their own ML models.

These plug-and-play solutions are powerful but require skilled software engineers to tailor them to business needs – whether that’s integrating AI into customer service apps, workflow tools, or backend systems.

HR and talent leaders will need to prioritise developing software engineering talent who can act as ‘AI translators’ – those who understand how to implement and adapt AI tools to fit business use cases.

You may not need an army of PhD-level data scientists, but you’ll need adaptable engineers who can connect the dots between tech and business.

2. AI specialists face a paradox: A lot of hype despite low pay

Despite generative AI dominating the tech narrative, the actual salaries for AI specialists dipped. This is because companies are purportedly skipping custom AI model development in favour of pre-trained models. This reduces the need for deep AI expertise, at least on the implementation side.

Leaders must therefore be strategic when hiring AI talent. Instead of full-time hires, they can consider short-term consulting or project-based contracts for highly specialised AI skills.

Businesses will need to channel their budgets towards roles that can deliver business value fast, rather than exploratory or R&D-heavy AI efforts.

3. Product and DevOps roles are soaring

Salaries for product managers and DevOps engineers are on the rise. This reflects growing employer emphasis on product thinking, rapid deployment, and continuous integration – all essential for staying competitive in today’s market. These roles ensure that AI and other tech capabilities are embedded smoothly into customer-facing and operational systems.

Businesses will have to double down on cross-functional talent and look for product managers who can bridge engineering, business, and customer experience. They also shouldn’t overlook DevOps engineers – these quiet enablers keep tech stacks agile and reduce time-to-market.

4. Cybersecurity pay is falling – but that’s not a green light to deprioritise

Interestingly, pay for cybersecurity professionals declined. This may be due to market saturation or improved automation in security workflows. But that doesn’t mean the risks have diminished – if anything, AI tools can increase attack surfaces.

Companies shouldn’t underinvest in cybersecurity. Instead, they should be tactical; focus on upskilling existing teams in AI-aware security protocols; and hire hybrid roles that combine cybersecurity knowledge with DevOps or cloud engineering.

Read: Singapore firms need 'skills first' mindset

5. Cost-efficiency is driving tech hiring decisions

Across all the trends, companies appear to want to do more with less. They are revaluating which tech roles actually drive ROI and focusing hiring efforts on adaptable, implementation-focused talent rather than niche experts.

For HR and talent leaders, now is the time to reconfigure workforce plans. That includes revisiting compensation bands, rebalancing in-house versus outsourced roles, and investing in learning pathways that prepare current employees for adjacent skill sets.

Recalibrating tech hiring portfolios

These shifts mean employers must balance their tech hiring portfolios: lean into software engineers, product thinkers, and DevOps professionals who can integrate new technologies into business-ready solutions.

In this time of volatility and transition, employers need to be cautious about over-investing in high-cost AI talent when off-the-shelf solutions may suffice. However, they need to keep a steady hand on cybersecurity, even when market rates dip.

In 2025, tech talent strategy will be all about building practical, flexible teams that turn innovation into execution.