Singapore’s services sector is showing cautious optimism as it moves into the second half of 2025. According to the latest Business Expectations Survey by the Department of Statistics Singapore, several industries are banking on major tourism-driven events and the continued growth of eCommerce to boost performance. This resurgence comes despite external uncertainties affecting global trade and finance.
The Accommodation industry is one of the strongest drivers of optimism within the services sector. With the return of high-profile events like the Singapore Grand Prix, hoteliers are expecting a surge in tourist arrivals. This is likely to lead to higher hotel occupancy rates and increased revenue throughout Q3 2025.
The report highlights that firms in the accommodation sector not only expect higher revenue (+37% net weighted balance), but also plan to increase hiring (+32%) to meet anticipated demand. This aligns with Singapore’s strategy to revitalize its tourism sector and position itself as a regional hub for international events.
Similarly, the Retail Trade industry anticipates improved business conditions during July to December 2025. The year-end festive season, combined with increased footfall from tourism, is expected to drive sales growth.
Although not the most optimistic among all industries, the retail sector still projects a positive net balance of +19% in business expectations. Retailers are preparing for higher consumer demand both in-store and online, further tying into the digital commerce surge.
While the Finance & Insurance industry overall remains cautious due to global economic concerns, a bright spot exists in payment processing firms. These companies anticipate higher transaction volumes and revenues thanks to the continued expansion of the eCommerce market.
The shift in consumer behavior toward digital transactions is sustaining growth in this sub-sector, even as traditional financial institutions adopt a more conservative stance amid geopolitical and policy uncertainties.
The Wholesale Trade industry, particularly firms dealing with computers, peripherals, and software, also forecasts higher revenue for Q3 2025. These wholesalers are capitalizing on business digitalization trends and rising demand for IT infrastructure and tools.
With a net weighted balance of +19% for operating revenue, the tech-focused wholesale segment is a crucial contributor to the sector’s overall optimism.
The forecasted increase in business activity is mirrored in employment projections. Overall, a net 9% of firms expect to hire more staff in Q3 2025.
Industries like Accommodation and Administrative & Support Services are leading this trend. The latter includes cleaning and landscape firms, which are ramping up hiring to meet growing service demands in the post-pandemic environment.
While not all industries are equally optimistic, the services sector in Singapore is gradually recovering, with event tourism and digital commerce emerging as key growth engines. High-profile events such as the Grand Prix, festive retail surges, and ongoing eCommerce expansion are contributing to improved business and employment outlooks.
As firms prepare for the second half of 2025, continued investment in tourism infrastructure, digital services, and workforce expansion will be critical in sustaining this upward momentum.
Shahriena Shukri is a journalist covering business and economic news in Malaysia, providing insights on market trends, corporate developments, and financial policies. More about Shahriena Shukri.
