Singapore’s retail sector experienced a challenging year in 2024, with sales contracting for two consecutive months, according to a report by UOB Global Economics and Markets Research.
December saw a 1.5% month-on-month decline, following a 2.8% drop in November. The downturn is attributed to sluggish tourist arrivals, which reached only 81% of 2019 levels, and a shift in resident spending abroad due to a strong Singapore dollar.
Despite a modest 1.2% growth in retail sales for the entire year, this was largely driven by a 17.1% increase in motor vehicle sales. Excluding motor vehicles, retail sales actually fell by 0.7%. Categories such as food and beverages, medical goods, and toiletries saw slight increases, whilst eight out of 14 retail categories recorded declines.
Looking ahead, the opening of new attractions, including a local theme park expansion in February 2025 and Singapore’s fifth zoological park, Rainforest Wild Asia, in March 2025, is expected to bolster domestic tourism. Additionally, an expansionary Budget 2025, featuring measures like CDC vouchers and increased cash support under the Assurance Package, is anticipated to further support retail sales.
The report highlights the potential for these developments to aid in the recovery of tourist arrivals and, consequently, retail sales in 2025. As Singapore continues to navigate the post-pandemic landscape, these initiatives may provide the necessary boost to revitalise the retail sector.
