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Key Insights
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In Singapore’s retail market, offline retail accounts for 87% of total market share, while online retail (e-commerce) only represents 13%. Within e-commerce transactions, cross-border e-commerce stands out, accounting for 55% of total online transaction value, demonstrating Singaporean consumers’ strong appetite for international products. Consumer research indicates that 86% of Singaporean consumers are willing to shop cross-border, laying a solid foundation for continued cross-border e-commerce development.
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Singapore’s foreign population, comprising approximately 40% of total residents, offers a natural advantage for cross-border retail development. These international residents tend to have higher income levels, maintain strong loyalty to brands from their home countries, and are more inclined to purchase such goods through both online and offline channels. This behaviour creates distinctive market opportunities for small and medium-sized enterprises (SMEs) expanding their cross-border operations.
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In Singapore’s high-density urban environment, where nearly any retail location can be reached within 15 minutes, physical convenience coexists with digital accessibility. The resilience of offline retail creates unique opportunities for physical retail investment.
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Despite the high degree of digitalisation in the market, Singaporean consumers continue to place significant value on tactile experience and quality assurance in their purchasing decisions. This preference is particularly notable in the following categories:
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Computers and telecommunications equipment: 46% of consumers prefer offline purchases, wishing to test product performance in person, verify screen display quality, and assess tactile factors such as keyboard responsiveness.
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Fresh Food and Supermarkets: as many as 88% of consumers prefer to shop offline, primarily to ensure product freshness, conduct on-site quality inspection, and guarantee food safety.
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BYD’s 2024 sales reached 6,191 units, representing a 337% increase compared with 2023 and elevating the company from a fringe player to Singapore’s automotive sales leader. This exceptional performance reflects the synergistic interplay of several key factors, demonstrating how foreign brands can achieve breakthrough market penetration during policy incentive periods.
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Firstly, BYD successfully captured the policy incentive window. The Singapore government’s electric vehicle (EV) promotion initiatives and Category A COE (Certificate of Entitlement) price advantages created unprecedented opportunities for EV manufacturers.
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Secondly, BYD leveraged its technological innovation and strong value-for-money proposition. Its leading battery technology, intelligent driving systems, and competitive pricing met Singaporean consumers’ dual demand for technological sophistication and practical value.
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Thirdly, BYD implemented an effective localised market strategy. By establishing a comprehensive sales network, after-sales service system, and partnerships for charging infrastructure, the company quickly earned widespread consumer trust.
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The silver economy is projected to reach USD 72.4 billion in 2025. As the proportion of the population aged 65 and above increases from 18% to 25% by 2030, the resulting surge in demand for healthcare, smart home solutions, and convenience services will significantly reshape the retail consumption landscape, creating a promising “blue ocean” market.
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In the first nine months of 2024, approximately 2,500 food and beverage establishments closed, with the average monthly closure rate increasing by 19.7% — surpassing even the pandemic-era contraction. The situation worsened in 2025, with an average of 307 restaurant closures per month. Traditional F&B models are under dual pressure from rising operating costs and intensifying competition, presenting countercyclical growth opportunities for brands with robust supply chain advantages.
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Bank cards maintain a dominant market share at 54.3%. However, prepaid cards and digital wallets are rapidly gaining traction, with a compound annual growth rate of 11.2%. The introduction of the SGQR unified QR code, integrating 27 payment platforms, offers a streamlined, one-stop payment access solution for global enterprises entering Singapore’s payment ecosystem.
Why do nearly half of Singaporean consumers still prefer to buy electronics offline in such a highly digitalised market?
How can small and medium-sized enterprises capture growth opportunities in this premium retail environment — where per capita GDP has reached $92,000?
And which payment methods are quietly surpassing traditional bank cards to become consumers’ preferred choice?
Market on the move: a snapshot of Singapore’s premium economy
Overview of Singapore’s market landscape
Singapore has a population of 6.037 million, of which foreign nationals account for up to 40%. This diverse population structure brings substantial consumer demand for international products. Nearly 70% of the population is of working age (15–64 years), with a median age of 42.8 years. The official language is English, with Chinese, Malay, and Tamil also recognised as official languages.
As Southeast Asia’s third-largest economy, Singapore’s 2024 GDP reached $548.15 billion, and by 2028 it is projected to grow to $626.28 billion, a cumulative four-year increase of approximately 19%. Notably, Singapore’s GDP in Q2 of 2025 grew 4.3% year on year, indicating strong economic recovery momentum. Although full-year growth forecast has been adjusted to 2%, primarily due to the negative impact of global economic uncertainty, Singapore’s economic fundamentals remain solid. For enterprises hoping to enter the Southeast Asian market, Singapore provides a relatively secure investment environment with long-term growth potential.
Additionally, Singapore’s per capita GDP stands at approximately $91,000, ranking in the top 5 globally and first in Asia. These figures reflect Singaporean consumers’ strong purchasing power and sustained demand for high-quality goods and services.
The Singapore Dollar (SGD) remains stable and resilient, with expectations of moderate appreciation in 2025. This outlook is supported by Singapore’s strong economic fundamentals, prudent fiscal policy, and the Monetary Authority of Singapore’s (MAS) proactive exchange rate management policy.
At present, the SGD trades around 1.29 to the US dollar, near its 10-year high, and analysts expect continued appreciation potential, mainly driven by capital inflows, a current account surplus, and a global trend toward capital diversification. In January 2025, the MAS slightly slowed the pace of SGD appreciation, reflecting its flexible and forward-looking policy stance. Core inflation is expected to ease to 1.0–2.0% in 2025 (down from 2.7% in 2024). A stable and resilient SGD provides strong protection for investors’ capital.
Source: Oxford Economics
In the consumer market, Internet penetration reached 82% in 2024, with mobile traffic accounting for 66.8%, indicating that Singaporean consumers are already accustomed to purchasing via digital channels. According to a Visa survey, the usage rate of debit and credit cards among Singaporean consumers has reached 95%, and the well-developed financial infrastructure provides a solid foundation for e-commerce growth.
Having reviewed Singapore’s overall profile, we will now examine the country’s economic structure.
Singapore’s economic landscape
In terms of population structure, as of 2024, Singapore’s total population (including residents and non-residents) stood at approximately 6.037 million, with a resident-to-non-resident ratio of roughly 2:1 (residents include citizens and permanent residents). Population growth has slowed, and the median resident age has reached 42.8 years, reflecting continued ageing of the population. The proportion of residents aged 65 and above (18%) continues to climb. To address these demographic shifts, the Singapore government is actively promoting foreign talent recruitment and enhancing local labour force participation, with permanent residents and non-residents now accounting for approximately 40% of the population.
Source: Statistics Singapore
Singapore’s labour market performance provides solid support for the consumer market. The latest data from Singapore’s Ministry of Manpower shows that the unemployment rate remains stable between 2.0% and 2.5%, indicating full employment. This low unemployment environment provides strong support for consumer purchasing power. Additionally, the labour force participation rate stands at 69%, reflecting the convergence of international talent and a high-income earners, which boosts overall consumption capacity.
Source: Oxford Economics
Singapore’s economy is in a highly mature phase. In terms of GDP composition, the services sector accounts for approximately 70%, with finance, professional services, tourism, and logistics forming the core pillars of the economy. Manufacturing accounts for approximately 20%, covering high value-added industries such as electronics, chemicals, and biomedicine. The financial services industry accounts for over 10% of GDP, with more than 700 financial institutions. This reflects Singapore’s exceptionally mature financial ecosystem, which provides comprehensive infrastructure for cross-border trade and payment services.
