Luxury spending in Singapore defies global slump

SINGAPORE – Luxury spending is defying a global slump in Singapore, a beacon for high-end retailers grappling with sluggish demand in major markets including China and the US. 

Luxury sales in the Republic are expected to climb 7 per cent to $13.9 billion in 2025 compared with 2024, outpacing heavyweight regional shopping hubs Japan, China and South Korea, according to data shared with Bloomberg by Euromonitor International. 

The country’s 2024 year-on-year growth in luxury sales surged past every other Asian market tracked by the analytics firm – except Japan. In 2026, it is projected to catch up to its 2019, pre-Covid-19 peak of $14.7 billion. 

Singapore’s population of around six million is dwarfed by the likes of megacities like Tokyo and Shanghai.

Yet it had the third-largest share of luxury store openings in 2024 among 32 Asia-Pacific cities, excluding those in China’s mainland, according to data shared with Bloomberg by commercial real estate firm Savills.

That is benefiting places like The Shoppes at Marina Bay Sands, where Italian label Marni opened its first store in August 2024.

The mall provides services like buggies to drive VIPs around for personalised styling sessions, and is set to launch salons previewing unreleased luxury collections for top clients, said senior vice-president of retail Hazel Chan. 

Ms Irene Ho, chief executive of marketing group The Luxury Network Singapore, said brands are also ramping up invitation-only sales events – now held several times a week – reflecting a pivot towards ultra-personalised shopping.

Mr Jonathan Siboni, founder and CEO of consultancy Luxurynsight, said: “Singapore has proved to be a very stable place for wealthy people. That has created a very strong local base for the luxury market.

“Singapore is an oasis in the desert.”  

The Republic is a rare bright spot in a luxury market dimmed by China’s slowdown, with its strength reinforced by political stability and rising affluence.

There are reportedly more than 240,000 millionaires here, and median household employment income has risen for five straight years. 

With visitors from countries including not just China and the US but Indonesia and India driving tourists’ retail spend to $3.9 billion from January to September 2024 – up 5 per cent year on year – Singapore is doubling as both a safe haven and strategic gateway for luxury brands targeting South-east Asia. 

Brands attracted to Singapore’s inbound wealth and clients versed in both Western and Asian aesthetics have begun using the market as a “controlled launchpad” to test retail ideas, said Mr Angelito Perez Tan Jr, co-founder and CEO of RTG Group Asia, whose businesses include a luxury consultancy. 

“These aren’t just gimmicks, they’re strategic soft launches that test how consumers engage emotionally with the brand,” he said. 

Despite its glitz, Singapore remains home to millions of people who are not millionaires – and the Government has been facing a delicate balancing act as it works to narrow the country’s wealth gap. Efforts to support the working class hinge partly on raising taxes on the wealthy, but risks driving them away – with some now considering alternative locations like Dubai. 

Banks stepped up scrutiny of wealthy clients in 2024, following a record $3 billion money laundering scandal that exposed weaknesses in how banks and brokerages in the country screen their customers. 

Still, the probe has only reinforced Singapore’s credibility among the rich by proving that it protects wealth, identity and reputation through rule of law, said RTG’s Mr Tan.

“It showed that the system works, and that’s exactly what matters to legitimate high-net-worth individuals,” he said.

“When there’s that kind of trust, spending naturally follows. That trust and validation are key reasons why luxury spending in Singapore has remained relatively steady, even as the broader region cools.”

Spending is flowing across all segments of the luxury industry and brands are fighting for attention.

Tapestry’s affordable luxury brand Coach opened its first ever bar in May, tucked into a heritage shophouse in Chinatown and serving up customised martinis and New York City-style street snacks.

High-end watchmaker Audemars Piguet Holding, meanwhile, opened AP Cafe inside its boutique, offering Swiss-Singaporean dishes incorporating wonton skins and chicken rice alongside couture.

Raffles City mall also entered the luxury beauty game in 2024 with massive pop-ups. In 2025, 21 brands – including Armani Beauty, YSL Beauty, Chanel, Dior and Gucci – are on the bill.

The upgrades are inspiring Singaporeans like Ms Chloe Liem, 22, an avid collector of jewellery from brands like Richemont’s Van Cleef & Arpels and Cartier.

“Even though I know luxury items are crazily marked up, I understand I’m paying for the experience and feeling of the brand,” she said.

“I feel confident splurging on these items because I enjoy it.” BLOOMBERG