In 2023, Singapore’s construction sector contributed around 22.37 billion Singapore dollars to the country’s gross domestic product (GDP). This was a noticeable increase after the construction sector had been especially affected by the COVID-19 pandemic. Robust private and public sector demand in 2019 The construction sector in Singapore experienced three consecutive years of negative growth until 2019. This increase was fueled in part by the unexpected higher demand from the private sector, especially by the construction of new petrochemical facilities by global giants Linde and ExxonMobil. Public construction demand, meanwhile, has been growing steadily since 2015, supported by major civil engineering projects such as the expansion of the MRT lines and housing development. In that year, the value of contracts awarded for both private and public sector construction amounted to around 33 billion Singapore dollars. Impact of COVID-19 on the construction sector However, the COVID-19 pandemic has already negatively impacted the construction industry. Singapore experienced its worst recession since independence, and in Q1 2020, the construction sector contracted by four percent. Social distancing measures and the stopping of non-essential work meant that many construction projects were put on hold. Furthermore, Singapore’s construction sector is facing a two-fold labor crisis. This industry is heavily reliant on migrant workers from foreign countries. The global restrictions in travel meant that hardly any new labor was available. Adding to this challenge, the migrant workers in Singapore had been badly hit by COVID-19, making up the largest share of COVID-19 infections in the country.

In 2023, Singapore’s accommodation sector contributed around 5.06 billion Singapore dollars to the country’s gross domestic product (GDP). This was a noticeable increase after the sector had been especially affected by the COVID-19 pandemic.

In 2024, the gross domestic product (GDP) of food and beverage services in Singapore amounted to approximately 5.47 billion Singapore dollars, indicating an increase from the previous year. The food and beverages service sector has improved since the outbreak of the COVID-19 pandemic, and has reached around pre-pandemic levels. Food and beverages services in Singapore The COVID-19 pandemic impacted the food and beverage services sector, which saw a decline in sales due to coronavirus pandemic restrictions. Although the retail sales index value of food and alcohol had significantly plummeted during the financial year 2020 and 2021, by 2022, the food and beverage industry sales had increased from pandemic lows. In 2022, all food and beverage services saw a significant year-on-year change in the sales index nationwide. Sales for food caterers increased by 133 percent compared to the previous year. Restaurants also experienced more than 76 percent sales in June 2022. Dining out as a Singaporean past time As Singaporeans frequently dine out, food and beverage services had been integral to Singapore’s economy and lifestyle. A survey of December 2022 revealed that 48 percent of Singaporeans preferred to dine out several times a week. Out of all mealtimes eaten out-of-home, 77 percent of Singaporeans chose to dine out for dinner.

In 2023, the wholesale trade sector contributed 22.3 percent to Singapore's nominal gross value added (GVA). Singapore's economy posted growth across as sectors, indicating a recovery from the impact of the COVID-19 pandemic.

Prior to the Coronavirus (COVID-19) outbreak, GlobalData expected Singapore’s construction industry to grow by 2.9% in 2020. However, with the emergence of the pandemic and the stringent measures taken by the government to contain the spread of the virus, the construction industry is now set to contract by 26.8% in 2020. According to the Department of Statistics (DOS), the construction industry registered year-on-year (Y-o-Y) declines of 46.6% in Q3 2020 and 60% in Q2. Owing to the temporary halt in most construction activities during the “circuit breaker” measures imposed during 7th April to 1st June 2020, followed by the phased resumption of construction activities and strict management implemented at work sites, the construction industry contracted by 35.4% year on year (YoY) during the first three quarters of 2020. According to the DOS, the total value of progress payments certified for construction registered a double-digit Y-o-Y decline during the first nine months of 2020, with commercial and residential sectors witnessing the highest declines. Read More

In 2023, the gross domestic product (GDP) of the transportation and storage industry in Singapore amounted to approximately 43.5 billion Singapore dollars. This was a marked decrease from the previous year. This sector had been impacted by the COVID-19 pandemic, during which movement restrictions were put in place to control the spread of the virus in 2020.

The total manufacturing output in Singapore in 2023 was valued at around 396.63 billion Singapore dollars. This was a decrease compared to the previous year, indicating a recovery from the economic shocks of the COVID-19 pandemic. In 2022, the manufacturing sector in Singapore expanded by 2.5 percent. Importance of the manufacturing sector to the Singapore economy Since its independence, the Singapore government has relied on manufacturing to develop its economy. From producing low-cost, labor-intensive goods, the manufacturing sector in Singapore has since then transitioned to high-value products and advanced manufacturing. While it is no longer the largest sector for employment in Singapore, the manufacturing industry is still the largest sector contributing to the Singapore economy. Key segments of the Singapore manufacturing sector The key segments of Singapore’s manufacturing sector are electronics and precision engineering, chemicals and refineries, and biomedical manufacturing. An essential product in Singapore’s electronics manufacturing sector is semiconductors. Some of the leading global pure-play foundries, such as GlobalFoundries and Taiwan’s United Microelectronics Corp (UMC), have established semiconductor manufacturing fabs in the city-state. Apart from semiconductors, the electronics manufacturing sector also produces storage and memory products and microelectromechanical systems (MEMs).

In 2023, about 1.08 million people traveled to Malaysia for medical and healthcare purposes. Medical tourism has increased in Malaysia since 2014, but the COVID-19 pandemic and travel restrictions in 2020 and 2021 caused a significant decrease in the number of medical tourists. The emerging leader of healthcare Malaysia is among other countries in the Asia-Pacific region such as Singapore, Thailand, and South Korea that have promoted the medical tourism industry. In 2005, the Ministry of Health (MoH) Malaysia established the Malaysian Healthcare Travel Council (MHTC) to promote healthcare travel. To support its ambition to be a medical tourism hub, Malaysia focused on developing its medical sector, by increasing the number of registered doctors and encouraging industrial collaboration between its private and public sectors, among others. The MHTC was created as a separate public sector entity in 2011, which gave it greater freedom to regulate the market. Since then, there had been significant growth in the medical tourism revenue. The Malaysian Health Travel brand The industry development and promotions, both domestic and abroad, have increased their international patient base and enticed foreign investment. The collaboration of the MHTC with Air Asia Indonesia is one such initiative that aimed at promoting metropolitan cities like Penang as the medical tourism center of the nation. The National Health Institute established the International Patient Center (IPC) to assist traveling patients with immigration services, visa, and health insurance transfers to make Malaysia the preferred destination for healthcare. Through this, Malaysia could see a steady development in the industry, which was reflected in the increasing value of the tourist expenditure for medical purposes, among others.

In 2023, the gross domestic product (GDP) of the Singaporean wholesale and retail industry amounted to approximately 150.61 billion Singapore dollars, indicating an increase from the previous year. The wholesale and retail sector had also seen a decrease in the year due to the COVID-19 pandemic in the previous year.

The construction sector in Singapore grew by 4.5 percent in 2024. The growth rate of the construction sector had been decreasing since its recovery from the COVID-19 pandemic in 2021.

According to a survey on the annual salaries in the supply chain industry in 2021, a head of supply chain in Singapore could expect an annual salary ranging from 360 thousand to 550 thousand Singapore dollars. Despite the COVID-19 pandemic, the salary ranges in the supply chain sector increased across the different roles.

Singapore's MedTech manufacturing output value reached 20.09 billion Singapore dollars in 2023, which marked a ten-year-high. MedTech is a key sector in Singapore’s manufacturing industry and plays a vital role in positioning the country as a biomedical hub. Key figures of MedTech manufacturing in Singapore MedTech has increased its share of manufacturing output in Singapore in the last decade, making up close to five percent of the manufacturing sector as of 2023. The sector employs more than 17,000 people, who, on average, earn more than 76,000 Singapore dollars, higher than the average salary of workers in the manufacturing sector. Singapore’s MedTech manufacturing output includes diagnostics tools, medical supplies and equipment, as well as medical aids such as orthopaedic devices and hearing aids. Singapore’s MedTech manufacturing sector is rebounding after the pandemic Between 2020 and 2022, the MedTech sector saw declining manufacturing output growth, after experiencing a surge in demand during the initial phase of the pandemic. However, preliminary figures for 2023 show that the sector is growing again, amidst increasing export demand. Singapore’s largest export markets for medical equipment are the United States, South Korea, and India.

In 2023, there was an increase of approximately 3,300 people employed in the food and beverages services industry in Singapore compared to the previous year. The food and beverages services sector was negatively impacted by the COVID-19 pandemic in Singapore in 2020, but has since recovered.

In 2023, the direct contribution from tourism to Singapore's gross domestic product was forecast to be at 3.7 percent. This figure was close to the GDP direct contribution from tourism before the COVID-19 pandemic.

According to a survey on the annual salaries in the supply chain industry in 2021, a head of manufacturing in supply chain in Singapore could expect an annual salary ranging from 260 thousand to 320 thousand Singapore dollars. The salary ranges have increased across the supply chain sector despite the COVID-19 pandemic.

Due to the coronavirus COVID-19 outbreak, many airlines had stopped their scheduled flights to China. From January 20 to February 3, 2020, the number of flight seats from China to Singapore saw a decrease of 38.2 percent, the largest drop among all travel markets. Thailand followed in second place, losing over 104 thousand seats during this period.

International airlines are struggling The pandemic severely disrupted the global aviation industry. Before the coronavirus crisis, Chinese outbound travel was estimated to increase in various countries during the Chinese New Year holidays. As of early February, flight bookings from China to worldwide regions for March and April registered drastic declines from the same period in 2019. As the virus spread swiftly across the globe, the plunge in flight ticket transactions in China continued through April. Industry experts expected that the pandemic could dampen the demand for global air travel for the whole year of 2020.

The devastating effects on Chinese tourism Besides the travel sector, the hotel business was also massively affected. As the epidemic became under control in the country, most of the hotels re-opened, however with a low occupancy rate at the end of March, 2020. The home-sharing giant Airbnb reported significant losses in the market. The outlook of Chinese domestic tourism sector is full of uncertainty, yet a loss of 20 percent in revenue for 2020 has been expected.

In 2022, the average occupancy rate (AOR) for hotels and accommodation in Singapore was about 75.5 percent. The standard occupancy rate has increased again after two years of decline due to the COVID-19 pandemic and the restriction measures that were implemented. Despite this, hotel and accommodation occupancy rates remain lower than in the pre-pandemic years.

COVID-19 impact and gradual recovery

The COVID-19 pandemic severely affected Singapore's hotel industry, resulting in a significant decline in hotel room revenue. However, a gradual recovery is underway, boosted by the tourism sector. In 2022, Singapore's tourism receipts amounted to about 14.18 billion Singapore dollars, a significant increase over the previous year. To support this gradual recovery, the country's hotel industry is adopting innovative strategies. This includes the Hotel Industry Transformation Map (ITM) 2025, which focuses on creating innovative and sustainable hotel experiences to meet changing consumer demands. By capturing demand through new hotel concepts, promoting sustainability, and leveraging technology, the sector hopes to thrive in the post-pandemic era.

Singapore's hotel landscape

Singapore's hotel industry is a vibrant sector, with 378 hotels spread across the country. As of April 2023, more than half of these hotels were small establishments with less than 100 rooms, while 23 percent had over 300 rooms. The country is also known as one of Asia's most expensive destinations for business travelers, offering a range of high-end accommodations, including the highly-rated Four Seasons Hotel. However, for the budget-conscious traveler, the average price of a room in a budget hotel stands at 119.92 Singapore dollars.

According to a survey on the annual salaries in the supply chain industry in 2021, a chief information officer (CIO) in Singapore could expect an annual salary ranging from 220 thousand to 430 thousand Singapore dollars. Although the COVID-19 pandemic hit, the salary ranges have increased across different positions in the supply chain sector.

In 2023, the gross domestic product (GDP) from real estate in Singapore amounted to 19.96 billion Singapore dollars. 2020 saw the lowest GDP contribution from real estate in the past ten years, likely due to the COVID-19 pandemic.