SINGAPORE - The service sector reported a 1.5 per cent year on year drop in revenue in the first quarter of the year, according to the Singapore Department of Statistics (SingStat) on Thursday (May 27).
This is a smaller contraction than that seen during the fourth quarter of 2020's year-on-year decline of 7.6 per cent.
All service industries except information and communications, finance and insurance, education, and health and social services registered lower business receipts on a year-on-year basis, said SingStat.
The figure excludes wholesale and retail trade, accommodation and food services.
On a quarter-on-quarter non-seasonally adjusted basis, overall business receipts fell 0.6 per cent in the first quarter of the year.
Among the service industries, quarter-on-quarter performance was mixed, SingStat noted.
Administrative and support services recorded the largest year-on-year drop of 19.9 per cent in receipts due mainly to a weaker demand for the services of firms engaged in rental and leasing of construction and air transport equipment.
Recreation and personal services saw the next biggest decline in revenue at 18.8 per cent year on year, as business activities in the attractions and gaming segments continued to be hit by the global travel restrictions as a result of the Covid-19 pandemic.
Maybank Kim Eng senior economist Chua Hak Bin said such services will continue to be dampened by the latest measures, which restrict social interactions and recreational activities.
However, information and communications services appeared to be a bright spot, registering growth both on a yearly and quarterly basis. Turnover rose 21 per cent year on year and 0.8 per cent quarter on quarter.
This was attributed mainly to an increase in business activities of game publishers and Web portals, such as online marketplaces and search engines.
Dr Chua noted that digitalisation, on the back of lockdowns and work-from-home arrangements, has helped the sector.
On a quarter-on-quarter basis, the professional services industry was the only one that recorded a double-digit fall in revenue at 12.5 per cent.
Within the industry, firms in legal activities, architectural and engineering services, and business and management consultancy services were among those that reported lower revenue due to a lower demand for their services, SingStat said.
Meanwhile, the education sector marked a 7.5 per cent growth in business receipts quarter on quarter. This was attributed mainly to firms in higher education and corporate training services.
