Asia’s highest-income country records 38,100 business closures in 7 months

Singapore, Asia's highest-income country, recorded a significant number of business closures in the first seven months of 2026, with 38,100 establishments shutting down. Despite this, 49,305 new businesses were registered during the same period, with the information and communications sector seeing the most significant increase in new openings. The rise came despite construction being one of the economy's strongest-performing sectors.

Construction businesses faced substantial challenges, with 2,127 firms closing down, a 47% increase from the same period in 2025. An interior designer, who wished to remain anonymous, revealed that several construction firms had gone bankrupt or closed due to soaring labor and raw material costs, as well as conflicts like the Iran war driving up energy prices. Some owners even opted to retire, citing these financial pressures.

Sim Chee Siong, a partner at Rajah & Tann law firm, noted that construction companies, especially smaller subcontractors and building contractors, have faced significant financial strain. Fixed-price contracts no longer provide adequate margins, and a cautious lending environment has accelerated the closure of companies already operating on thin margins.

The food and beverage sector also experienced notable closures, with an increase of 25.1% to 2,101 establishments. However, 2,594 new F&B businesses were registered during this period. Similarly, the information and communications sector saw a 26.7% increase, with 2,594 new companies established. Singapore ranked first in Asia and eighth globally in GDP per capita last year, standing at $99,365 according to the International Monetary Fund.