Singapore expected to lag regional peers in retail sales: report

Singapore

THE growth of Singapore's retail sector is expected to underperform its regional peers, but an affluent population could provide stability especially in luxury goods, according to a study by Frost & Sullivan.

Using forecasts by the Economist Intelligence Unit, the study reported estimated annualised growth of 15.5 per cent from 2015 to 2018 for the combined retail sales of Indonesia, Malaysia, Singapore and Thailand, to US$1 trillion.

"Much of the expansion is being driven by the strong fundamentals of the Asean market including a young, fast-growing population, emerging middle-class consumers, and robust GDP growth," Frost & Sullivan wrote in the report, which was commissioned by the Singapore Exchange. "Other parameters stimulating the retail sector include falling unemployment numbers amid a tight labour market and increasing urbanisation. Employment growth clearly adds to a country's consumption ability, while urbanisation prompts de…