Singapore Retail Sales Growth Strengthen 4q2025 Rhb
According to a recent report by RHB, the retail market in Singapore is expected to see a surge in sales growth during the last quarter of 2025, despite its modest performance so far this year. The firm has maintained its projection of a 2.5% increase in retail sales for the whole year, citing a cautiously optimistic outlook for the remaining months.
The unchanged forecast comes in light of the higher retail sales growth recorded in August. Data released by the Department of Statistics revealed a 5.2% year-on-year (y-o-y) increase in retail sales in August, up from the 4.6% recorded in the previous month.
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RHB’s report notes that this is the strongest expansion in retail sales since February 2024, when a 8.4% y-o-y growth was recorded. With August’s figures included, Singapore’s retail sales have risen by 2.2% year-to-date.
The report also predicts a steady retail activity in the last quarter, supported by an expected increase in tourism inflows during upcoming festive periods like Deepavali and Christmas, as well as the year-end school holidays. Moreover, government initiatives such as the SG60 and GST vouchers are also expected to provide a short-term boost to domestic demand. Under the GST voucher scheme, eligible Singaporeans receive a cash payout of up to $850 in August, on top of the $600 worth of SG60 vouchers received in July.
RHB also attributes its positive outlook to encouraging online sales data, which reflects strong consumer confidence. Online sales accounted for 13.1% of the total retail sales value of $4.3 billion in August, on par with the proportion in July. The majority of online sales came from computer and telecommunications equipment (54.5%), followed by furniture and household equipment (32.6%), and supermarkets or hypermarkets (11.3%).
However, RHB cautions that the positive outlook for the retail market is contingent on the stability of the country’s economic conditions. The report adds, “A caveat to our positive view lies in a potential slowdown in Singapore’s economy alongside a softening labour market in the second half of 2025.” Potential risks include weaker external demand due to broader tariff impacts and lower labour demand, particularly in the manufacturing and wholesale trade sectors.