Singapore retailers have called for sustained Budget support, especially for those in the lifestyle industries, citing challenges such as rising costs, manpower crunch and intense competition.
According to the Singapore Retailers Association (SRA), the country’s retail industry continues to face headwinds, including manpower shortages, rentals and operating costs, competition from e-commerce and shifting consumer demands.
The organisation warned that without sustained support, local businesses risk being outpaced by well-funded foreign competitors.
“The mounting difficulties are reflected in the retail sales data for 2025 where segments such as apparel and footwear continued to decline, while others like supermarkets have remained more resilient,” said Ernie Koh, president of SRA.
The market also saw a dual-speed market where well-capitalised global brands dominate high-footfall locations, putting pressure on smaller local operators, Koh added.
In a joint call for support with other lifestyle trade bodies, including the Restaurant Association of Singapore and Singapore Fashion Council, the SRA has highlighted several recommendations for Budget 2026 to tackle the mid and long-term challenges facing retailers.
The proposal focuses on three key areas – strengthening SME competitiveness, addressing manpower issues, and supporting sustainability efforts.
To improve the competitiveness of local SMEs, the groups suggest launching a scale-up program that provides them with capital to accelerate growth, as well as access to partners, strategic guidance, mentorship, and commercial opportunities.
They also proposed a franchise and licensing accreditation system to capture clearer insights into foreign brand entry, allowing stakeholders to better anticipate market shifts and safeguard local enterprises.
In addition, the groups suggest refining Community Development Council (CDC) vouchers to channel government support directly to essentials, balancing cost-of-living relief with support for local retailers.
To resolve manpower shortages, the organisations suggest extending the Progressive Wage Credit Scheme for the retail and food services industries until 2028, and increasing the co-funding for the retail industry from 20 per cent to 75 per cent this year.
Other recommended measures include lowering the cost of hiring foreign staff for frontline retail roles, incentivising the hiring of PMETs (professionals, managers, executives, and technicians) over 50, improving the career conversion program, and implementing trade testing for new foreign workers.
To further accelerate sustainable retail, the group recommends expanding the Climate Vouchers scheme to include companies with trusted green certifications, such as B-Corp, Singapore Furniture Industries Council’s Sustainability Furniture Mark or Green Mark.
“The future is dependent on seamless omnichannel integration, leveraging AI and personalisation, enhancing experiential retail, prioritising sustainability, and upskilling the workforce to navigate the challenges faced by the industry,” the SRA said.
“These include high costs and manpower shortages, with growth supported by tourism and tech adoption, despite near-term economic uncertainties,” it added.
Further reading: Singapore retail sales jump 5.8 per cent in November
