From retail to finance, operational challenges cut across all industries
Singapore has recorded a significant increase in business closures by 2025, with more than 60,000 companies going out of business—the highest number in the past eight years, according to data from Singapore’s Statistics Department.
This comes despite Singapore’s GDP growth remaining strong in 2025, as economic growth exceeds expectations, highlighting that even in a growing economy, many firms are still facing increasing operational pressures.
The impact of the shutdown is uneven across sectors, with some industries being hit harder than others. Here is a breakdown of the sectors most affected by 2025:
What the numbers show
The business is closed in 2025 by the industry:
| Industry | Business closure number |
| Wholesale Trade | 9980 |
| Professional, Scientific and Technical Activities | 9616 |
| Information and Communication | 7550 |
| Retail Trade | 6794 |
| Financial Services and Insurance | 4783 |
| Arts, Entertainment, Recreation and Other Service Activities | 3736 |
| Food and Beverage | 3074 |
| Education, Health and Social Services | 2985 |
| Transportation and Storage | 2960 |
| Building | 2737 |
| Administrative and support functions | 2550 |
| Production | 2518 |
| Housing Jobs | 763 |
| Others | 335 |
| Place of residence | 64 |
Retail trade, professional services, and information and communication accounted for the largest number of closures, reflecting both market competition and structural pressures.
Retail and F&B, often highlighted in media coverage, remain important contributors but are not the only sectors under pressure.
Even stable sectors such as financial services and education recorded thousands of closures, indicating that operational challenges are broad-based: no sector is free from cost pressures, competition, or market uncertainty.
In the past year, Singapore has seen a series of prominent business exits that reflect the level of disruption.
Homegrown fashion label Closet Lover has announced its closure in May 2025, closing its online and offline stores after 17 years in business. Cinema operator Projector also went down last year, citing “increasingly unforgiving” realities in the industry.
The F&B sector has also experienced several closures, with brands such as Twelve Cupcakes, Fluff Stack, and The Prive Group ceasing operations. International brands were also not spared, with Eggslut and Gong Cha closing their Singapore locations, indicating that foreign operators are equally exposed to the challenges of the local market.
Why foreclosures are on the rise
Several factors have contributed to the sharp increase in business closures in Singapore by 2025, including both structural challenges and temporal pressures.
High operating costs are putting a strain on many firms, especially in F&B and retail. Rising rents, wages, and input costs have squeezed already tight profit margins, and some small shops in popular districts like Kampong Glam have seen rents double or triple in recent years.
Fierce competition adds another layer of difficulty.
While Singapore remains an attractive market for new businesses, the large number of entrants—both domestic and foreign—across hospitality, lifestyle, and other sectors makes it more challenging for firms to attract enough customers or secure the talent needed to fuel growth.
Debt and liquidity pressures are also important.
Many companies have struggled with unpaid debts or cash flow problems, driving cash outflows to levels not seen in several years. In fact, data from the Ministry of Law shows that the number of applications for compulsory closure and the number of companies ordered to be wound up will reach 15 years by 2025.
Entrepreneurs are still entering the market
Despite the lockdown, Singapore’s business structure remains strong.
By 2025, 78,146 new businesses were registered, continuing the steady, modest increase seen every year over the past decade.
Although many entrepreneurs are still entering the market, an equally large number of firms are exiting, resulting in moderate growth in the total number of active enterprises. This reflects both the strong entrepreneurial optimism and the harsh realities of operating in sectors with strict boundaries.
The challenging workplace has continued until 2026—other exits so far have included Itacho Sushi and Deliveroo.
With global uncertainty such as the Iran war, the business climate is unlikely to be easy. Business sentiment in Singapore has already been affected as companies grow increasingly wary of future demand and cost pressures.
Firms are forced to adapt quickly, as resilience and strategic planning become more critical to survival.
- Read other articles we’ve written about Singapore businesses here.
Featured Image Credit: Jason Goh/Pixabay
