Singapore's Domestic Wholesale Sales Drop 4.4% in Q4: A Closer Look

Singapore's domestic wholesale sales took a hit in the fourth quarter of 2024, declining by 4.4% year-on-year, according to data released by the Singapore Department of Statistics. This slowdown was slower than the 6.9% fall in the previous quarter, but it still raised concerns about the overall economic growth of the city-state. Let's delve into the factors contributing to this decline and its impact on the Singaporean economy.

The industrial and construction machinery sector was the most affected, with a steep decline of 22.6% due to lower sales of electrical and wiring accessories. Additionally, the ship chandlers and bunkering, and petroleum and petroleum products industries experienced significant drops of 14.1% and 10.4%, respectively, primarily due to lower prices of bunker fuel and crude oil. On a quarterly basis, wholesale trade grew by 4.6% in the fourth quarter, reversing a 6.7% fall in the previous quarter.

This decline in domestic wholesale sales contributed to the overall slowdown in economic growth during Q4 2024. The economy grew by 5% year-on-year in the fourth quarter, a slight moderation from the 5.7% expansion in the third quarter. On a quarter-on-quarter seasonally adjusted basis, growth slowed to 0.5%, down from 3% in the previous quarter.

In response to this development, the Ministry of Trade and Industry (MTI) maintained its GDP growth forecast for 2025 at 1% to 3%. The ministry acknowledged that economic performance would depend on global market trends and domestic sectoral developments, indicating that they were monitoring the situation closely and would adjust their policies as needed to support economic growth.



The decline in domestic wholesale sales in Q4 2024 had an impact on the overall economic growth of Singapore. However, it is essential to note that the wholesale trade industry was not the only sector contributing to the economy's expansion in 2024. The electronics cluster within manufacturing, along with the machinery, equipment, and supplies segment in wholesale trade, saw robust growth due to the global electronics cycle upturn. Additionally, the finance and insurance sectors benefited from increased trading activity amidst shifting global and domestic financial market sentiments.

In conclusion, the 4.4% decline in Singapore's domestic wholesale sales in Q4 2024 was primarily driven by the industrial and construction machinery sector, as well as the ship chandlers and bunkering, and petroleum and petroleum products industries. This decline contributed to the overall economic growth slowdown in the quarter but was not the sole factor influencing the Singaporean economy. The Ministry of Trade and Industry remains vigilant and is prepared to adjust policies as needed to support economic growth in 2025.