Singapore: Despite being affected by the COVID-19 pandemic, in the past 18 months, more companies have been established in Singapore than closed.
The Minister of State for Trade and Industry Low Yen Ling told Parliament on Wednesday (November 3) that between March 2020 and September 2021, more than 73,000 commercial entities ceased operations and nearly 103,600 were established.
In response to a question from Member of Parliament (MP) Wan Rizal (PAP – Jalan Besar), Ms. Low explained that in the past two years, an average of about 3,840 companies have been deregistered every month – compared with the period 2017 to 2019 The situation is similar.
But at the same time, more than 5,000 new companies are registered on average each month, “reflecting an increase in the total number of companies operating in Singapore.”
She pointed out that “business forms continue to flourish,” she added, adding that the industries with the largest number of newly established companies include professional services, wholesale trade and retail.
She said: “In the past few years, the government has invested a lot of resources to help our businesses resist the direct impact of COVID-19. We also help our businesses prepare for the post-COVID-19 recovery, and in many ways Continue to enhance Singapore’s status as a business center.”
This includes strengthening physical and digital connections by reopening borders and investing in digital infrastructure and corporate capacity building.
Ms. Low said that the authorities are still helping companies seize new opportunities, such as those from the green sector. Transformation plans for specific departments are also underway.
Retail and tourism
MP Saktiandi Supaat (PAP-Bishan-Toa Payoh) also asked about the retail and tourism-related departments that have been hit by the pandemic.
Alvin Tan, Minister of State for Trade and Industry, pointed out that from January 2020 to September 2021, 8,600 retail businesses have closed. This is 330 more than the same period from 2018 to 2019.
“However, there are 15,570 newly established retail companies, resulting in a net increase of 6,970 retail companies in the same period from January 2020 to September 2021,” Mr. Chen said.
He said that as for the tourism industry, there have been “some exits” since January last year, but new entrants have kept the number of companies operating “quite stable”.
For example, although 13 hotels have closed, the number of licensed hotels is still around 420.
He said that although 176 tour guides chose not to renew their licenses during this period, the total number of licensed tour guides still hovered around 2,900.
Travel agencies have been hit harder. Although about 30 new travel agencies have entered the market, 157 (8% of all licensed travel agencies) have ceased operations.
How many workers have been laid off?
Mr. Tan said that between January 2020 and October 20, 2021, about 4,370 workers in the core tourism industry were laid off, of which 58% were locals.
“However, with early intervention and support under the SG United Jobs and Skills initiative, 67% of locals who were laid off between January and September 2020 found new jobs within six months.”
He added that about 1,180 retail employees were laid off in 2020, which is equivalent to 16.9 layoffs for every 1,000 employees. More than half of them can enter different industries within six months of layoffs.
He said that as for tour guides, there are about 250 safe distance ambassadors under the Singapore Tourism Board (STB).
Mr. Tan reiterated that the government has provided the industry with the highest level of support under the Employment Support Plan, as well as other extensive measures.
He said: “Initiatives such as the Singapore Rediscovery Voucher (SRV) program have also stimulated demand by encouraging Singaporeans to rediscover our city, our tourism products and support our local tourism business, including the business of travel agencies.”
For example, between the initiation of the SRV program and the start of the “high alert” in May 2021, the monthly number of travel participants increased from more than 10,000 to more than 50,000.
Mr. Tan said that the Singapore Tourism Board expects the tourism industry to reach pre-pandemic levels in the next few years, adding that at the same time, the authorities are helping companies in the retail and tourism industries to upgrade themselves.
