“The rebound was primarily driven by a strong recovery in the motor vehicles segment, which posted a 10.4% y-o-y increase, reversing the 2.9% y-o-y decline recorded in April,” wrote Barnabas Gan, RHB’s group chief economist & head of market research, and Laalitha Raveenthar, associate research analyst at RHB. “International events such as Lady Gaga’s concert and the distribution of CDC Vouchers in May likely provided an additional boost to retail activity,” say Gan and Raveenthar.
Singapore’s retail sales rose 1.4% y-o-y in May, the fastest annual increase since January, lifted by a sharp rebound in motor vehicle sales. However, underlying momentum in the sector remains weak, and retail activity is expected to slow in the second half of 2025, according to RHB Bank Singapore.
In a note issued on Jul 5, RHB economists cautioned that retail sales excluding motor vehicles were flat y-o-y in May, compared to 0.8% growth in April. This indicates a slowdown of sales momentum and suggests that further softening in the retail sector may be expected in the coming months.
