KEY HIGHLIGHTS
- Singapore retail spending is expected to stay firm into 2026, backed by jobs and rising household wealth.
- Strong wage growth, lower mortgage costs, and investment gains are keeping wallets open.
- Retail sales could grow 3.5%–4%, even with fewer government handouts next year.
If you’ve noticed malls staying busy and flights fully booked, you’re not imagining things. Economists expect Singapore’s consumer spending momentum to carry into 2026, supported by a resilient job market and rising household wealth.
After a cautious start in 2025, spending picked up sharply in the second half of the year. Travel, groceries, home items, and even big-ticket discretionary purchases all saw renewed demand, helped by a strong Singapore dollar and steady employment conditions.
Why economists are confident about 2026 spending
According to Maybank, retail spending in Singapore is forecast to grow by around 3.5% to 4% in 2026. While this is slightly slower than the recent post-voucher surge, it is still much healthier than early 2025, when growth barely crossed 1%.
The key difference? Jobs and wealth. Wage growth is expected to stay ahead of inflation, investment markets have done well, and interest rates are easing — all of which put more spending power in consumers’ hands.
| Key driver | What’s happening | Why it matters for spending |
|---|---|---|
| Job market | Employment rose by 24,800 in Q3 2025 | More stable incomes, less fear of cutting back |
| Wages | Real wages projected to rise 4%+ in 2026 | Higher take-home pay despite living costs |
| Investments | STI up 22.4% in 2025 | Wealth effect boosts confidence |
| Interest rates | Gradual easing expected | Lower mortgage repayments free up cash |
| Singapore dollar | Remains strong | Encourages travel and overseas spending |
Vouchers helped — but spending isn’t just about handouts
Retail sales jumped from July 2025 onwards when fresh CDC and SG60 vouchers were distributed. Supermarkets, in particular, saw monthly sales surge by more than 8.5% in July and August.
That said, economists don’t think spending will collapse when vouchers taper off in Budget 2026. While fiscal support will likely be less generous, consumer behaviour suggests Singaporeans are comfortable spending beyond essentials.
“People are spending on wants, not just needs,” one economist noted — a sign that confidence, not subsidies, is driving demand.
Feeling richer changes how people spend
Rising stock prices and steady property values have created a clear wealth effect. The Straits Times Index climbed 22.4% in 2025, helped by improved market sentiment and policy support.
Local equities also received a boost from the Monetary Authority of Singapore through its S$5 billion Equity Market Development Programme. When portfolios look healthier, people tend to loosen the purse strings — honestly speaking, that’s human nature.
Big-ticket spending is back on the table
Discretionary spending has surprised on the upside. From electronics to home furnishings, Singaporeans have been willing to spend thousands when their finances allow.
One young professional spent S$4,800 upgrading his bed and S$2,700 on TVs after a pay raise, calling it a long-delayed “quality of life” upgrade. For many first-time homeowners, furniture and home-related spending has been a major driver, thanks to ongoing BTO and private home completions.
Travel, concerts, and experiences are winning
A strong Singdollar has made overseas travel especially attractive. Short trips to Johor Bahru, as well as holidays to Japan, Thailand, and China, continue to draw spending out of Singapore.
For some, experiences matter more than things. One concertgoer spent about S$4,000 on travel and accommodation alone in 2025, plus another S$2,500 on concert tickets. With regional flights and entertainment options expanding, this trend looks set to continue into 2026.
Cars, watches, and jewellery are also selling well
Luxury and big-ticket categories haven’t slowed much either. According to DBS Bank, watches and jewellery benefited from both local buyers and higher tourist arrivals during peak periods like the Formula 1 Singapore Grand Prix and China’s summer holidays.
Motor vehicle sales stayed firm too, partly due to growing interest in lower-cost electric vehicles. China-based BYD registered 7,473 cars in the first nine months of 2025, already exceeding its 2024 total. EV incentives and relatively lower running costs are clearly resonating with buyers here.
The weak spot: F&B is still struggling
Not all sectors are enjoying the same success. The food and beverage scene remains under pressure, even with voucher support.
Between January and October 2025, 3,357 new F&B outlets opened — but 2,431 closed. More than 60% of closures involved businesses less than five years old, and 82% of them never turned a profit, according to official figures shared by DPM Gan Kim Yong.
Competition is intense, and diners are more selective. With good dining options easily available overseas, fewer people feel compelled to queue or splurge locally.
What this means for Singaporeans in 2026
For most Singaporeans, 2026 looks steady rather than explosive. Spending growth won’t rely heavily on handouts, but on jobs, wages, and confidence.
Home-related purchases, supermarket spending, travel, and selective big-ticket items should continue to support retail growth. F&B, however, may remain challenging unless operators adapt fast.
Worth worrying about? Probably not — as long as the labour market stays resilient and the Singdollar holds its strength.
Frequently Asked Questions
Will Singapore retail spending really grow in 2026?
Yes. Economists expect growth of around 3.5%–4%, supported by jobs, wage increases, and lower borrowing costs.
Are CDC vouchers still driving spending next year?
Not as much. Budget 2026 is expected to be less generous, but spending momentum is increasingly driven by income and wealth, not vouchers alone.
Which sectors are likely to do best in 2026?
Supermarkets, home-related retail, travel-related spending, EVs, and selected luxury segments are expected to perform better than F&B.
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