It says companies should also consider making use of flexible wage arrangements to reduce monthly variable components (MVCs) of salaries as appropriate. Those companies that are well leveraged should consider only "moderate" increases to their staff MVCs.

Importantly, the NWC has advised organisations to cut non-wage costs wherever possible. It also urged them to follow the tripartite guidelines on managing excess manpower so that retrenchments are used only as a last resort option.

The NWC meeting was brought forward several months in response to the economic downturn. Many experts saw this as a sign that the council would call for a cut in employer Central Provident Fund contributions but council chairman Lim Pin said this would not be the best weapon against falling demand.

Rather, he argued that the current guidelines were (for now) "sufficiently substantive and adequate to see us through this unusual crisis".