Singapore’s retail sector experienced a marginal growth of 0.3% month-on-month in April, according to UOB Global Economics and Markets Research. This follows a 2.7% decline in March, reflecting ongoing challenges in the retail landscape. The year-on-year growth was similarly modest at 0.3%, down from 1.3% in March.
The April figures were notably impacted by a significant drop in sales at petrol service stations, which fell by 10.6% year-on-year. This decline aligns with the downward trend in Brent crude oil prices, which averaged $66 per barrel in April, compared to $71 in March. Additionally, sectors such as wearing apparel and footwear, department stores, and furniture and household equipment also saw declines.
Conversely, the sale of watches and jewellery, as well as computers and telecommunications equipment, showed robust growth. Watches and jewellery sales increased by 12.9% year-on-year, whilst computers and telecommunications equipment surged by 14.8%.
The overall sluggishness in retail sales year-to-date, which stands at 0.9% compared to 1.4% in 2024 and 2.3% in 2023, is attributed to the slow recovery in tourist arrivals. As of April, tourist numbers remain at 91% of pre-pandemic levels, with particularly slow recovery from Southeast Asian countries like Thailand and the Philippines.
Looking ahead, retail sales are expected to remain tepid throughout 2025. However, initiatives such as the Budget 2025 measures, including CDC and SG60 vouchers, alongside tourism promotion efforts, may provide some support to the sector.
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