Singapore’s consumer sector cautiously optimistic about 2023

AS MUCH of the world emerges from the shadow of Covid-19, consumer spending in Singapore – by both locals and tourists – is rising. Industry players expect this trend to continue into 2023. The optimism is tempered with caution, however, as inflationary pressures and labour market tightness continue.

Since March, Singapore’s retail sales have grown year on year for eight months straight. Growth has largely been driven by the effect of a low base in 2021. But month-on-month growth has also trended upwards, apart from dips in June and August.

Retail activities have improved as borders reopen and locals are more willing to spend in the absence of Covid curbs, said Singapore Retailers Association (SRA) president Ernie Koh. “Some in the retail sector are seeing steady growth, and many are back to pre-pandemic levels or close to it.”