Singapore shares closed 0.64 percent higher on Monday, after the latest U.S. payrolls data indicated strong underlying wage growth.

U.S. stocks rose on Jan. 6 on the back of a positive December jobs report that continues to support expectations for higher inflation. While the headline non-farm payrolls of 156,000 was lower than market expectations, average hourly earnings advanced by 2.9 percent over the 12 months to December.

Investors now await a news conference by President-elect Donald Trump on Wednesday where his views on global trade and China will be carefully scrutinized for future policy implications.

Meanwhile, oil prices edged lower due to a stronger dollar and growing concerns over whether major oil producers would stick to an agreement to cut output.

Singapore's benchmark Straits Times Index rose 18.91 points to 2,981.54 points. Trading volume was 2.14 billion shares worth 881 million Singapore dollars. Advancers outnumbered decliners 265 to 177, while 648 stocks did not move.

SembCorp Marine rose 2 percent to 1.52 Singapore dollars. It said its wholly owned subsidiary Jurong Shipyard (JS) and North Atlantic Drilling (NAD) agreed the delivery of the semi-submersible drilling rig, the West Rigel, to be further extended to July 6.

SembCorp Marine said during the standstill period, NAD will continue to market the unit for an acceptable drilling contract and JS will have the right to sell the unit at an acceptable price. The unit will remain at the JS yard in Singapore during this period.

In the event that no employment is secured and no alternative transaction is completed when the standstill period concludes, the parties will form a holding company for joint ownership of the unit to be owned 23 percent by NAD and 77 percent by JS.

KSH Holdings ended flat at 54 Singapore cents. It announced that its indirect 22.5 percent owned joint venture company, Sino-Singapore KAP Construction, has amended the scope of its business activities by adding property management, carpark management, housing construction, road works construction, piping works, and sale of property and finishing and decoration materials to its original business activity of property development. The company is a 50-50 joint venture between KSH's 45 percent-owned associated company Beijing Jin Hua Tong Da Real Estate Development (BJJHTD) and KAP Holdings China.

Among top gainers, Jardine Matheson rose 1.7 percent to 60 U.S. dollars, while GuocoLand became one of the top losers by falling 2.2 percent to 1.82 Singapore dollars. (1 U.S. dollar equals to 1.45 Singapore dollars)