SINGAPORE’S services industries saw their takings rise 14.5 per cent year on year in the third quarter of 2022, easing from the 15.6 per cent growth rate in Q2, according to Department of Statistics (Singstat) figures on Friday (Nov 25).

On a quarter-on-quarter, non-seasonally-adjusted basis, business receipts were also up 3 per cent in Q3, extending the previous quarter’s 5.1 per cent increase.

Singstat’s business receipts index excludes wholesale trade, retail trade, and accommodation and food services, which are tracked separately.

Maybank analyst Chua Hak Bin said that while growth in the services sector remained strong in Q3, it will continue to moderate in the coming quarters “as the reopening tailwinds fade and activity in the hospitality and consumer-facing sectors normalise to pre-pandemic levels”. 

All of the services industries in the index saw year-on-year growth, and all saw quarter-on-quarter growth except information and communications, which was unchanged.

Seeing the largest year-on-year rise in revenue of 70.4 per cent was the recreation and personal services industry.

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Singstat said this was mainly due to higher earnings of firms in the gaming and attractions segment, compared to the year-ago period when there were stricter restrictions in operating capacity and social gathering group sizes.

Transportation and storage saw the next largest growth of 31.2 per cent, with increased activities in air transport as travel curbs relaxed overseas and in Singapore.

Water transport takings also rose, due mainly to shipping lines.

Double-digit growth was also seen in real estate (13.7 per cent), finance and insurance (12 per cent) and professional services (11.4 per cent).

On a quarterly basis, business receipts rose most for recreation and personal services (10.2 per cent), real estate (9.6 per cent) and education (5.7 per cent). In Q2, both real estate and education had recorded declines quarter on quarter.

“The growth in the real estate segment may be because of the strong rental market, boosted by the return of foreigners to Singapore from the reopening and relaxation of border controls,” Chua noted.