The services sector in Singapore is forecasting a more favourable business environment for the period of July to December 2026, according to the latest Business Expectations Survey conducted by the Singapore Department of Statistics. A net weighted balance of 13% of firms expressed optimism, with 19% anticipating better conditions and only 6% expecting a downturn.
All industries within the services sector are projecting a positive outlook. The Accommodation industry is particularly optimistic, buoyed by major events such as Formula 1 and concerts, which are expected to increase visitor numbers and hotel occupancy rates. Similarly, the Wholesale Trade industry foresees growth, driven by the adoption of Artificial Intelligence (AI) technologies, which is expected to boost demand for AI-optimised products.
The Recreation, Community, and Personal Services industry is also upbeat, with firms in education and health services citing new pre-school openings and a rise in demand for AI-related courses as key factors. The Administrative and Support Services industry anticipates increased demand for security services due to upcoming major events.
In terms of operating revenue, a net weighted balance of 14% of firms expect improvements from July to September 2026. The employment outlook is also positive, with a net weighted balance of 10% of firms planning to increase hiring during the same period. The Accommodation industry, in particular, expects higher spending from tourists, whilst the Wholesale Trade industry anticipates revenue growth from global demand for AI products.
