Singapore’s retail sales experienced a second consecutive month of growth in February, with a 3% month-on-month increase, according to UOB Global Economics and Markets Research. However, year-on-year figures revealed a 3.6% decline, attributed to shifting holiday effects. The January to February period saw a modest 0.8% year-on-year rise, bolstered by a recovery in tourist arrivals, which reached 96% of 2019 levels.
Motor vehicles remained a significant contributor to retail sales, with a 10.4% year-on-year increase in January to February. Excluding motor vehicles, retail sales would have declined by 0.5% year-on-year. The report also noted that upcoming Lady Gaga concerts in May are unlikely to significantly boost retail sales, although hotel revenue per available room may benefit as Singapore will be her only Asian stop.
Looking ahead, the opening of new attractions, including a local theme park and Singapore’s fifth zoological park, Rainforest Wild Asia, could enhance domestic tourism and support retail sales. However, escalating tariffs and trade tensions pose risks, potentially impacting both domestic and tourism spending if regional labour market conditions deteriorate.
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