The retail trade industry plays an important role in Singapore’s economy. By definition, retailing refers to the sale of merchandise and services to consumers or end-users. Retailing is part of an integrated system referred to as the supply chain. It is the process of moving or delivering goods or services from suppliers to manufacturers, retail and ultimately, the consumers.
The vibrant and bustling retail scene of Singapore has set it as a prime location for retailers both locally and globally. Recently, a report published by Jones Lang LaSalle (JLL) has ranked Singapore as the third most attractive international retailers’ destination in Asia Pacific. Hong Kong and Shanghai ranked first and second respectively.
According to the JLL report, Singapore’s low entry barriers and robust supply chains have immensely contributed to the constant growing number of international retailers entering the city-state. However, there are still several roadblocks for international brands looking to penetrate the Singapore market. The report noted that low vacancy rates in Singapore’s prime locations pose as a major predicament for new entrants to secure a suitable and ideal premise for their business. The supply and demand discrepancy has led to a rental hike in prime locations during the recent years.
Meanwhile, the rise of suburban residential projects over the past few years has heightened the number of suburban malls. This opened opportunities for international retailers, who previously only had a presence in urban areas, to set outlets and widen its reach in Singapore’s suburban areas.
In 2010, Singapore’s retail sector has amassed operating receipts worth S$37.4 billion for the economy. The number of local and international retail establishments has since continued to increase. To put up a retail business in Singapore, registration at the Accounting and Corporate Responsibility Authority (ACRA), either manually or with the aid of a professional services firm, is mandatory. Corresponding licenses and permits must also be secured prior to operating. These vary depending on the nature of the retail business; retailers selling products that are related to health or safety such as pharmaceuticals, supermarkets, cosmetic stores, telecommunications shops, and liquor stores are required to obtain necessary permits and licenses.
International brands will find Singapore’s strategic location highly beneficial in expanding its reach to neighboring Southeast Asian markets. Are you interested in putting up a retail outlet in Singapore? Ensure that starting a business in Singapore is as efficient and smooth as possible through our comprehensive and cost-effective line of Singapore business registration, incorporation, and professional support services. At Richmond, we are dedicated to helping small and medium-sized enterprises who are interested in establishing their business in Singapore. Get in touch with us for a free consultation with one of our incorporation experts.