Business closures in Singapore jump almost 13% but openings still outpace shutdowns
https://www.straitstimes.com/business/business-closures-in-singapore-jump-almost-13-but-openings-still-outpace-shutdowns?fbclid=IwdGRjcAT9BxRwZG9mBWV4dG4DYWVtAjExAHNydGMGYXBwX2lkDDM1MDY4NTUzMTcyOAABHjRTGaW9NGsYDMJGYSFroqtM36mJaelrZqpkeWPXu0dXtNVbJlS-t3ZHNFyE_aem_e3dVtQlagCZnhZkDvAqWwQ
Business Closures in Singapore — Jan–Jul 2026 (Full Summary)
Source: The Straits Times, 27 August 2026, by Annabelle Liang
Data source: Accounting and Corporate Regulatory Authority (ACRA)
📊 Overall Numbers
Metric Figure Change vs Jan–Jul 2025
Business closures 38,146 ↑ 12.8%
New businesses registered 49,305 —
Net increase +11,159 businesses —
Openings continued to outpace closures overall .
🏗️ Construction — Hardest Hit Sector
- 2,127 closures — up almost 47% year-on-year (sharpest rise of any sector)
- 2,277 new firms opened in the same period
- Background: BCA expects up to $53 billion in public & private contracts awarded in 2026
- Why small firms are struggling:
- Fixed-price contracts signed earlier now have eroded margins — without adequate cost-escalation clauses
- Material costs up ~10% (steel bars, ready-mixed concrete)
- Cautious bank lending squeezing cash flow for already thin-margin operators
- Competition from foreign contractors (notably from China) with stronger capital and supply chains
- Higher labour & raw material costs, exacerbated by geopolitical tensions including the Iran war pushing up energy prices
- Some owners simply choosing to retire
🍽️ Food & Beverage — Next Hardest Hit
- 2,101 closures — up 25.1% year-on-year
- 2,594 new F&B businesses registered
- High churn is long-standing due to low barriers to entry and shifting consumer tastes
- Notable closures: Tom's Palette (gelato), Fika (Swedish café), Pantler (patisserie)
- ⚠️ Important caveat: ACRA figures do not capture businesses that have ceased trading but not yet been deregistered
Real-world example: Chef's Tavern (closed Dec 2025). Owner Stephan Zoisl cited excessive fixed rent paired with falling average spend per customer; even near-full bookings could not cover overheads when revenue dipped. He has since pivoted to lower-overhead private dining .
🚀 New Business Growth — Led by Info-Comms
- Information & comms: ~7,300 openings — +26.7% year-on-year, strongest growth sector
- Administration & support services, and retail trade also saw strong increases
- AI expansion is driving service-sector growth and supporting data centre & digital infrastructure construction demand
📌 Other Key Points
- March 2026 spike: Closures jumped that month due to ACRA's intensified efforts to strike off defunct/dormant companies — about 20% of struck-off entities are removed by ACRA directly
- Major upcoming projects — Changi Airport T5, MBS expansion — will boost construction demand, but benefits may not flow evenly to smaller firms; micro builders also have opportunities in landed housing, retrofitting, maintenance, and specialised works
📍 Bottom Line
Closures are up double-digits, but the business landscape remains net-expanding. The pain is concentrated among small contractors squeezed by costs, competition and credit conditions, and F&B operators caught in high-rent, low-margin traps — even as AI and digital sectors lead strong new business creation.
A 33-year-old man hopes his experience on a bus will remind commuters that not every disability is immediately visible.
Stomper Billy, who says he has a weakness in his left leg after suffering a stroke two years ago, said he was berated by a woman for not giving up his priority seat to an elderly man on Aug 27.
The incident occurred on bus service 8 at about 7.55am, shortly after the bus left Toa Payoh interchange for Tampines.
Billy told Stomp that he suffered complications from both leukaemia and a stroke when he was 31.
Despite being cancer-free, Billy claims he continues to experience weakness in his left leg and has a foot drop, which affects his ability to walk.
“On the outside, I look like a normal man, but I walk with a foot drop,” he said.
He explained that he uses priority seats because his condition can make it difficult for him to stand or maintain his balance on a moving bus.
Woman allegedly tells him he is young and should stand
According to the Stomper, a woman approached him and asked him to give up his seat to an elderly man.
He said he explained that he needed the seat because of his leg weakness, but claimed the woman refused to accept his explanation.
“She started to scold me and said that I am young and I should just stand and give up my seat,” he said.
“She then started to take photos of me, so in retaliation, I took videos of her.”
In videos he shared, the pair can be heard arguing as other commuters stand around them on the crowded bus.
At one point, the woman calls Billy an “idiot” and tells him: “Make sure you viral.”
She then appears to strike his phone while he is recording her.
Billy can be heard responding: “See, assault.”
The woman subsequently tells him to “come out”, which Billy said was a challenge for him to alight from the bus and “settle” the dispute with her.
She can also be heard hurling vulgarities at him before the video ends.
Billy said she eventually alighted a few stops later.
He added that the bus captain did not intervene, but believes the bus was too crowded for the captain to notice what was happening.
Billy made an online police report after the incident.
The police confirmed with Stomp that a report was lodged and that they are looking into the matter.
Why more awareness is needed for invisible disabilities
The Land Transport Authority (LTA) has previously highlighted that not all health conditions or disabilities are visible.
Under its Helping Hand scheme, commuters with invisible conditions who require a seat can obtain a “May I have a seat please” card to alert fellow commuters that they need one.
In a September 2025 parliamentary reply on priority seating, the Ministry of Transport (MOT) also noted that besides the elderly and persons with disabilities, other commuters may need a seat because of invisible medical conditions.
MOT said its approach was not to legislate for every scenario, but to build a caring commuter culture that supports a wide range of needs.
LTA has also advised commuters with mobility needs to remain seated while a bus is moving as part of its bus passenger safety campaign.
‘People shouldn’t judge’
Billy said this was not the first time his condition had led to questions over his use of a priority seat.
On a previous occasion, a mother asked him to give up his seat to her child.
He did so as he was getting off at the next stop.
However, he hopes sharing his latest experience can raise awareness of people living with disabilities or medical conditions that may not be immediately apparent to others.
“I think people shouldn’t judge someone on the priority seat just because they look healthy, young or able,” he said.
“I hope this can help bring more awareness to people with ‘invisible disabilities’ like me.”