Singapore’s retail sector is expected to maintain its resilience in the second quarter of 2025, according to the latest Global Economics and Market Strategy Report by RHB Bank. The report, authored by Barnabas Gan, Group Chief Economist and Head of Market Research, highlights that government support measures and international events are key factors driving this stability. However, potential global headwinds could pose challenges in the latter half of the year.
The report identifies three domestic factors contributing to the retail sector’s performance in Q2 2025. These include the distribution of Singapore’s Budget Assurance Package, a series of retail events scheduled during the quarter, and a robust online sales environment. In April, retail sales in Singapore saw a modest increase of 0.3% year-on-year, with a similar month-on-month rise. Excluding motor vehicles, the growth was slightly higher at 0.8% year-on-year, though this was a slight dip from March’s 0.9% increase.
Despite these positive indicators, the report warns of potential challenges in the second half of 2025. “We anticipate Singapore’s retail climate to remain resilient in Q2 2025, driven by government support measures and international events, but may weaken in H2 2025 amid potential global headwinds,” Gan stated.
As Singapore navigates these economic dynamics, the retail sector’s performance will be closely watched, particularly as external factors begin to exert more influence in the coming months.
“`
