Table of Contents

Tertiary sector

Tourism and hospitality

According to Lim (2024), Singapore’s tourism industry is expecting a rise amid the global travel recovery from the recent COVID-19 pandemic outbreak. Based on the findings, the arrival of international tourists to Singapore has more than doubled in 2023, recording a total of 13.6 million tourists in contrast to 2022’s 6.3 million tourists. Tourism receipts of the country have also exceeded the Singapore Tourism Board (STB)’s forecast of between SGD 18 billion and SGD 21 billion for 2023, with an estimate value between SGD 24.5 billion and SGD 26 billion. The growth of the industry is also supplemented by Statista (2024), which has projected the market’s revenue to reach USD 3,826 million (approx. SGD 5,210 million) by 2024. The growth of the market is expected to grow continuously at an annual rate of 4.74% between 2024 and 2028, with a projected volume of USD 4,605 million (approx. SGD 6271 million) by 2028. Notable trends of the industry include the customers’ preference in package holidays, in which Statista (2023) has projected to reach 4.98 million users by 2028. Another notable trend in the Singaporean tourism industry is the increasing awareness on sustainable and eco-friendly travel options. In other words, businesses looking to succeed in the Singaporean tourism industry may need to focus on green accommodations, carbon-neutral transportation, and responsible tourism practices to ensure the capture of the market share.

Wholesale & retail

The wholesale and retail industry makes up a majority Singapore’s economy and is known as the largest service industry in the country with an 18.6% nominal valueadded (VA) recorded in 2022 (MTI, 2023). According to Romero (2024), the Singaporean wholesale and retail industry has recorded a contribution of approximately SGD 150.61 billion to the country’s GDP in 2023. Owing to the country’s high market of e-commerce retailing, the industry has shown consistent growth despite being hit by the COVID-19 pandemic outbreak in 2020. According to Mordor Intelligence (2024), the integration of Augmented Reality (AR) and Virtual Reality (VR) appears to be an upcoming trend in the Singaporean wholesale and retail industry. A survey conducted in 2019 has recorded over 45% of retailers citing plans to implement AR – VR solutions by 2020. While the market condition of the wholesale and retail industry in Singapore is attractive, it is worthwhile to note that the market operates under an oligopoly market structure with a few major players. These major players such as big retail hypermarkets and supermarkets have been increasingly replacing smaller unorganized outlets in the industry. These market leaders include:

  1. Japan Foods Holding Ltd
  2. Sheng Siong Group Ltd
  3. Watsons
  4. ABR Holdings Ltd
  5. Dairy Farm International Holdings (DFI)

 

In other words, the high barrier of entry of the industry must be addressed before businesses decide to enter the Singaporean wholesale and retail industry. Nonetheless, the industry remains attractive with a CAGR of more than 3% over the next 5 years. 

Food service 

As updated on the 1st of May 2024 by the Singapore government agency, the food service industry in Singapore is a highly competitive market with more than 7,200 establishments across five sub-industries including restaurants, fast food, cafes, coffee shops (food courts, canteens), pubs, and food caterers. The market size of the six sub-industries as recorded in 2022 is provided below with restaurants being the largest and pubs being the smallest among the sub-industries (Romero, 2024). The vibrant food scene of the country may be attributed to Singaporean’s long working hours, resulting in a higher frequency of dining out (Hirschmann, 2023). According to Mordor Intelligence (2024), the market size of the Singaporean food service industry is estimated at approximately USD 24.88 billion in 2024 and is expected to reach USD 55.93 billion by 2029 with a CAGR of 17.58% during the forecast period. Owing to the long working hours of Singaporeans, it is no surprise that chained outlets with standardized offerings and efficient operations ended up being the fastest-growing segment in the industry by outlet type, with an 18% projected CAGR from 2024 to 2029. An ongoing market trend in the Singaporean food service industry includes the increasing demand for ghost kitchens, which are defined as restaurants without a dining space that solely operate through delivery services. Based on the findings from Mordor Intelligence (2024), the number of cloud kitchens will only continue to increase, with a projected CAGR of 19.96% during the forecast period between 2024 and 2029. This indicates business opportunities with low investment and high revenue as there is little to no cost involved in infrastructure or restaurant setup

Public transportation

Singapore is known as a global leader in terms of public transportation system with its extensive metro network and innovative use of technology. One of Singaporean’s main means of public transport is the MRT system, which has over 140 stations on six lines with a recorded network length of 230 kilometers in 2022 (Romero, 2023). According to Statista (2024), a significant increase in Singapore’s public transportation market is expected by 2024, bringing the revenue of the industry to approximately USD 1.34 billion by 2024. The figure is projected to grow at an annual rate of 1.28%, ultimately reaching a market volume of USD 1.41 billion by 2028. As of 2022, the country has recorded an average of 6.4 million daily passengers of the public transportation system. Of the 6.4 million passengers, around 2.75 million are users of the country’s Mass Rapid Transit (MRT) system. A concurrent trend in the public transportation industry of Singapore is the integration of technology. For instance, the government and transportation companies have been investing in smart technologies such as contactless payment systems and real-time tracking apps to further improve the convenience and efficiency of public transportation services.

Leave a Reply

Your email address will not be published. Required fields are marked *