Business closures in Singapore jump almost 13% but openings still outpace shutdowns
Construction firm closures rose 47 per cent year on year in the first seven months of 2026.
In the first seven months of 2026, the number of business closures in Singapore increased by nearly 13% compared to the same period in 2025, according to the Accounting and Corporate Regulatory Authority (ACRA). However, the number of new businesses registered also saw a rise, with 49,305 new businesses registered by July 31. The information and communications sector experienced the strongest growth in new businesses, followed by the administration and support services and retail trade sectors.
The construction industry faced the sharpest rise in business closures, with 2,127 firms shutting down. This was despite the sector being one of the strongest performers in the economy, with up to $53 billion in public and private contracts expected to be awarded this year. Construction firms struggled with higher costs, competition from foreign firms, and changes in the lending environment, according to industry observers.
A food and beverage business closure, such as Tom's Palette, a gelato shop, and Fika, a Swedish cafe, saw a 25.1% increase in closures year on year. The sector traditionally has a high churn rate due to low barriers to entry and changing consumer preferences. Some notable closures include European-Japanese fusion restaurant Chef's Tavern, which struggled with high rent costs and difficulty adapting to a mass-market concept.
Austrian-born chef-owner Stephan Zoisl attributed his restaurant's closure to the unforgiving math of high fixed costs and uncertain diner spending.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
