Singapore’s retail sales are expected to maintain a steady growth trajectory into the first half of 2026, according to RHB Bank’s latest Global Economics and Market Strategy Report. The bank’s Group Chief Economist and Head of Market Research, Barnabas Gan, has projected a 2% growth in retail sales for the full year, citing a resilient economic backdrop, festive activities, and a stable labour market as key supporting factors.
Despite a 0.4% year-on-year decline in retail sales in January, which marked a sharp reversal from December’s 2.5% increase, the outlook remains positive. Excluding motor vehicles, retail sales fell by 2.8% year-on-year in January, contrasting with a 1.8% rise in December. These fluctuations, however, have not deterred the overall optimistic forecast for the sector.
Gan’s analysis suggests that the retail climate will remain robust, at least through the first half of the year, driven by ongoing economic resilience and consumer spending during festive periods. The stable labour market is also expected to contribute to sustained consumer confidence and spending power.
The report underscores the importance of these economic indicators in shaping the retail landscape in Singapore, providing a cautiously optimistic outlook for businesses and investors in the sector. As the year progresses, the interplay of these factors will be crucial in determining the actual performance of retail sales in Singapore.
