Monday Wrap: Economy cools in 2026, cross-border legal demand grows, and insurance premiums rebound

GDP growth is expected at 1.8–3% in 2026.

Last week in Singapore Business Review, Singapore’s economy, business, and property sectors saw mixed momentum, with growth moderating in some areas whilst structural shifts created new opportunities.

Economists expect Singapore’s GDP growth to ease in 2026 after a strong 2025 driven by AI-related electronics exports, infrastructure spending, and robust manufacturing. Forecasts range from 1.8% to 3%, with slower trade and potential US tariffs cited as headwinds. Despite this, continued activity in modern services, construction, and digital sectors is expected to cushion the slowdown.

Singapore’s insurance industry rebounded in 2024, with gross premiums rising 10.7% year on year. Growth was led by life insurance as firms expanded beyond traditional protection into wealth, investment, and retirement solutions. This reversed a contraction in 2023 and reflects insurers adapting to changing consumer preferences and interest-rate conditions.

The housing market saw private residential prices increase 0.7% quarter on quarter in Q4 2025, bringing full-year growth to 3.4%. Landed homes drove the gains, posting the strongest quarterly growth in about two years, while non-landed prices softened slightly, particularly in the prime Core Central Region. Analysts expect price growth to remain positive but moderate in 2026.

The city state's legal sector continued to see strong hiring, driven by cross-border transactions and complex client requirements. Demand is highest for lawyers with expertise in disputes, M&A, ESG, fintech, and digital assets. Firms are investing in training, overseas exposure, and AI tools to enhance efficiency and talent retention.

Meanwhile, Singapore remains cautious on retail access to digital assets. While adoption is growing in institutional investment and tokenised payments such as stablecoins, regulators are unlikely to open the market to retail investors over the next two to three years, maintaining a focus on consumer protection and a tech-neutral regulatory framework.

Global food brands continue to use Singapore as a testing ground for Asia. Burgers now make up half of the local fast-food market, attracting chains such as Chick-fil-A. Success depends on menu localisation, pricing strategies, and operational efficiency, especially as competition and costs remain high.

On energy, Singapore is shifting focus from local generation to regional integration, targeting 6 gigawatts of low-carbon electricity imports by 2035 through cross-border grids for solar, wind, and hydropower. 

Singapore companies are also anchoring their India strategies in Bengaluru, leveraging the city’s talent, innovation ecosystem, and regulatory support. The Singapore Enterprise Centre in Bengaluru provides on-the-ground guidance for market entry, partnerships, and long-term growth in sectors such as digital innovation, renewable energy, and advanced manufacturing.

Finally, rising costs, funding constraints, and skills gaps are challenging Singapore businesses in overseas expansion and technology adoption. A KPMG–SID survey found that workforce readiness and mobility barriers are limiting globally capable teams. Recommendations include stronger trade partnerships, financial support, AI collaboration, and enhanced training initiatives under Budget 2026.