Singapore’s services sector is projecting a positive business outlook for the second half of 2025, according to the latest Business Expectations Survey by the Singapore Department of Statistics. The survey, conducted from June to July 2025, reveals that 17% of firms are optimistic about the upcoming six months, whilst 15% expect conditions to worsen, resulting in a net weighted balance of 2% predicting favourable business conditions.
Within the sector, the Accommodation and Retail Trade industries are particularly upbeat, driven by anticipated boosts from concerts, sporting events, and the year-end festive season. These events are expected to increase tourism and hotel occupancy rates, as well as drive sales growth for retailers. The Recreational, Community, and Personal Services industry also shares this optimism, with health services and childcare providers expecting sustained demand.
Conversely, the Transportation and Storage industry faces challenges, particularly in water transport, due to geopolitical uncertainties and anticipated lower demand following the expiration of the US tariff pause. However, positive sentiments from air and land transport firms provide some balance. Similarly, the Finance and Insurance industry remains cautious amidst economic uncertainties, though payment processing firms are optimistic about rising transaction volumes due to eCommerce growth.
For the third quarter of 2025, a net weighted balance of 7% of firms in the services sector expects higher revenue. The Accommodation industry, buoyed by events like the Singapore Grand Prix, and the Wholesale Trade industry, particularly in computer-related products, foresee revenue growth. Employment prospects are also positive, with a net weighted balance of 9% of firms planning to increase hiring, especially in the Accommodation and Administrative & Support Services industries.
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