Singapore’s retail sales experienced a significant boost in October, rising by 4.5% year-on-year and 2.3% month-on-month, according to UOB Global Economics and Markets Research. This surge was largely attributed to the influx of tourists during the F1 Singapore Grand Prix and China’s Golden Week, which saw a notable increase in Chinese visitors compared to September.
The tourism-sensitive sectors, such as watches and jewellery, recreational goods, and food and alcohol, showed remarkable improvements. Watches and jewellery sales jumped by 16.1% month-on-month, whilst recreational goods and food and alcohol saw increases of 9.5% and 6.3%, respectively. Despite a slight decline in department store sales by 1.3% month-on-month, the overall retail sector remained robust.
Tourist arrivals in October reached 90% of 2019 levels, up from 86% in September, providing a substantial lift to retail sales. However, the increase in resident outbound air departures, which hit 110% of 2019 levels, may have diverted some local spending abroad.
Looking ahead, the outlook for retail sales remains cautious. The 3Q25 Labour Market Report indicated strong employment growth, but wage growth may moderate as fewer firms plan to raise wages. A survey by the Singapore National Employers Federation revealed that 58% of employers intend to freeze headcount in 2026, and 48% plan to moderate or freeze wages for the 2025/2026 financial year. These factors could temper consumer spending in the near term.
