Singapore: High Street looks firm in 2022 – UOB

Senior Economist at UOB Group Alvin Liew assesses the latest Retail Sales figures in Singapore.

Key Quotes

“Singapore’s retail sales improved further with 12.1% y/y expansion in Apr (from 8.8% in Mar), against market expectations for a 10.4% y/y growth. Retail sales excluding motor vehicles rose even higher by 17.4% y/y (from 13.6% in Mar).”

“11 of the 14 main sub-indices of retail sales expanded on a y/y basis in Apr (up from 9 in Mar) with the strongest y/y growth recorded by wearing apparel & footwear (46.6% y/y) followed by food and alcohol (35.6% y/y), a testament to the easing of dine-in restrictions in the domestic market and the further relaxation of COVID-19 rules for travellers as borders reopen further.”

“We keep the view that domestic retail sales will continue to stay supported in 2022, in line with the positive economic outlook, re-opening trends and tightening labour market. On the external front, we expect that domestic retailers will likely see some support as borders continue to reopen, complementing the recovery in domestic activities but the downside to growth and upside to inflation outlook brought on by a protracted Russia-Ukraine conflict, will dampen the recovery in consumption demand while the region’s transition to the endemic state and increase in private spending could help offset some of those negative impact. Barring the re-emergence of fresh COVID-19-related risks in Singapore and around the region, we expect retail sales to expand by 6.0% in 2022.”