4 Most Relevant Industries In Singapore In The Years To Come
Singapore is one of the wealthiest countries in the world. As such, it comes as no surprise that the country makes for a business hub with plenty of successful industries to operate in. Indeed, there are lots of thriving industries in the country that contribute to its continuously booming economy. Hence, if you are planning to start a business in Singapore, the good news is that you have a variety of industries to choose from.
However, like any other country in the world, Singapore is also a nation whose economy has been adversely affected by the COVID-19 pandemic – it underwent turns of recessions and depressions. As a consequence, the growth of numerous industries has diminished.
Fortunately, some industries in Singapore have constantly increased their revenue despite the economic impacts of the global health crisis. If you are curious as to what these sectors are, you are on the right track! In this article, we share the most relevant and successful industries in Singapore today and in the upcoming years.
1. Software and technology
The software and IT industry significantly drives the hiring demands of all other sectors. In fact, based on the most recent data, the necessity for software engineers is looking to improve by about 25 to 30 per cent after the pandemic. This is mainly due to the fact that the demand for innovative software and cybersecurity rises as technology evolves.
Nowadays, most businesses already have an online presence that requires security and protection. As such, there is an expectation for the informational technology industry to expand due to accelerated digitisation during the health crisis, and this pushes them to go digital and cashless. Ultimately, the software and technology industry is set to thrive, with cybersecurity analysts and ethical hackers becoming more important in most companies.
The manufacturing industry contributes to over 20 per cent of the gross domestic product (GDP) of Singapore. However, because of the slowdown in the United States, the European Union, and China, this industry is confronting increasing headwinds. Its output decelerated to 0.5 per cent year-on-year between 2021 to 2022. The decreasing momentum of growth in the electronics sector, which is responsible for 40 per cent of the overall output of the manufacturing industry, has been a significant cause for this industry’s output growth decline.
Moreover, decreasing chemical output also contributed to the declining out-turn. Nonetheless, this decline has been alleviated by significant development in transport engineering and biomedical manufacturing. At length, even with the pressures of inflation, the overall output growth of the manufacturing industry is expected to increase year-on-year and remain relevant for the coming years gradually yet progressively.
3. Banking and finance
Regardless of the performance of the global economy, the financial sector remains quite functional. As a matter of fact, since the beginning of the pandemic, many organisations have had to hire external financial specialists to reconsider their budgets.
Financial literacy and banking continue to be critical in helping firms remain operative when operations were interrupted at the height of the pandemic. Furthermore, due to the issuance of digital banking licences and the resilience of the property market, the finance sector currently sees plenty of exciting developments at present.
Singapore is considered one of the best regional centres for healthcare. Patients from neighbouring Southeast Asian countries, as well as those in the Asia Pacific, the United States, and Europe, are being treated at Singaporean hospitals and healthcare institutions. Hence, it is not surprising to know that the healthcare industry in the country is expanding substantially. With the addition of new polyclinics and community hospitals, this industry is sure to even grow more in the following years.
There is no doubt that the COVID-19 pandemic has economically impacted a lot of industries in Singapore and other countries. That said, certain industries remain performing and even significantly developing despite the economic pressures of the global health crisis. So, suppose you are planning to start a business in Singapore this year. In that case, the software and technology, manufacturing, banking and finance, and healthcare industries are the ones you should ideally consider!
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