From Jan – Sept 2025, 80+ new recruitment agencies were established in Singapore under Non-FDW Comprehensive and Select licences. 40 of these were Select licences, signalling a sharp increase in solo and boutique consultancies.

Many of these founders are experienced recruiters breaking away from traditional agencies, either because they couldn’t find a role that suited their career ambitions, or wanted autonomy to run their own way of working.

WHAT DOES THIS MEAN FOR THE MARKET?

For standalone / boutique recruiters:

• Autonomy comes with risk – running a solo business means owning everything: clients, compliance, marketing, finance.
• Niche is critical – depth beats scale. Success comes from owning a vertical, a role type, or a specialist network.
• Sustainability is key – starting is easy; staying profitable and consistent is the real challenge.

For larger agencies:

• Talent retention is harder – senior recruiters are leaving to start their own ventures. Flexibility, autonomy, and influence matter more than ever.
• Competition is shifting – agencies are no longer just competing with other agencies. They’re competing with boutique operators and independents who can move fast and operate with lean structures.
• Market fragmentation is real – client relationships, candidate networks, and top talent are increasingly dispersed across smaller operators. Agencies need to understand this dynamic when planning growth and retention strategies.

The takeaway: The recruitment market is fragmenting. Large agencies must recognise that the real competition is increasingly with independents and small boutiques, not just other large firms and thus they must consider how they retain those consultants at risk of going it alone.