What: Singapore retailers are urging the government for stronger Budget support to enhance sector competitiveness.

Why it is important: The call for Budget support highlights the vital role of government policy in sustaining retail sector competitiveness amid rising costs and digital disruption.

Singapore’s retail industry is actively seeking increased government intervention to bolster its competitiveness in the face of mounting operational costs, rapid digital transformation, and ongoing workforce challenges. Retailers are emphasising the need for targeted Budget measures to support digitalization, upskilling, and innovation, which are seen as essential for maintaining resilience and growth. The sector has demonstrated notable adaptability, with November 2025 marking a 5.8% year-on-year sales increase and nearly 20% of value generated through online channels, underscoring the importance of digital integration. Despite these gains, persistent pressures from evolving consumer preferences and regional competition have prompted retailers to call for more robust policy action. The industry’s ability to rebound from earlier downturns, as seen in March 2025, further illustrates the necessity for strategic government support to ensure long-term sustainability and to secure Singapore’s status as a premier retail destination in Asia.

IADS Notes: In January 2026, Inside Retail reported Singapore retailers’ calls for stronger Budget support to address rising costs, digital transformation, and workforce needs. Sector resilience was evident in November 2025, with a 5.8% sales jump and significant online growth, while December and September 2025 data highlighted ongoing digital integration and market maturity. Earlier in May 2025, Inside Retail noted the sector’s rebound and the importance of adaptation and workforce development in sustaining competitiveness.

Singapore retailers urge stronger Budget support to boost competitiveness