Businesses restructure amidst sector growth

New registrations exceeded cessations in manufacturing and retail.

Businesses continue to restructure and relocate parts of their operations in response to cost, technology, and supply chain considerations amidst growth in Singapore's manufacturing and retail trade sectors.

Minister for Trade and Industry (Energy and Industry) Dr Tan See Leng said in an oral answer to Parliament on 9 September that manufacturing grew 7.3% year on year (YoY) in the first quarter (Q1) and 12.5% in the second quarter (Q2).

Retail trade also grew 2.5% YoY in Q1 and 1.0% in Q2.

“In both sectors, the number of new business registrations exceeded the number of business cessations over the first half of the year,” Tan said.

He said businesses regularly review and optimise their operations in response to changing market conditions.

“A company may shift its production to regional countries for cost optimisation, whilst retaining its headquarters here to benefit from Singapore's ecosystem, for functions such as product development, regulatory and quality oversight, distribution, and supply chain planning,” he added.

Singapore's economy expanded 6.1% in the first half of the year, following full-year growth of 5.3% in 2024 and 5.0% in 2025.

Tan said Singapore's value proposition to businesses remains strong, citing the Economic Development Board's (EDB) $8.9b in total business expenditure commitments in 2025.

The majority of the commitments came from investments in headquarters, professional services, and research and development.

The EDB also secured $14.2b in fixed asset investment commitments, including about $12.1b from manufacturing-related projects.

“The Government closely monitors the economic conditions to ensure that we remain an attractive hub for businesses and sustain the supply of good jobs for our people,” Tan said.

He said the government will continue to support businesses and workers to pivot, grow, and pursue opportunities in advanced manufacturing, artificial intelligence, high-value trust-based services, quantum, and space, in line with the Economic Strategy Review recommendations.

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Economic Development Board Singapore

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