Core Insights - Singapore's retail trade and food and beverage services showed growth in June 2025, with significant online sales growth indicating structural changes in consumer behavior [1][3] - The overall retail sales reached SGD 4 billion in June, with online sales accounting for 13.6%, up from 12.3% in May [1][3] - Year-on-year retail sales grew by 2.3%, continuing the 1.3% growth trend from May, although month-on-month sales saw a decline [1][2] Retail Sector Performance - The automotive sales sector experienced a year-on-year increase of 14.6%, attributed to higher Certificate of Entitlement (COE) quotas [2] - Sales in the computer and communication equipment, optical products and books, and leisure goods sectors grew by 7.3%, 5.9%, and 5.6% respectively [2] - Conversely, gas stations and food and alcohol retailers saw sales declines of 5.9% and 5.2% year-on-year [2] Food and Beverage Services - Food and beverage service sales reached SGD 962 million in June, with online sales comprising 26.7% [2][3] - Year-on-year food and beverage sales grew by 0.1%, but month-on-month sales declined by 1.5% [2] - Within the sector, restaurant sales fell by 5.6% year-on-year, while fast food sales increased by 2.3% [2] Online Sales Trends - Online sales penetration varies across sectors, with computer and communication equipment at 56.2% and furniture and home equipment at 32.8% [3] - The online sales penetration in the food and beverage sector remained high at 26.7%, indicating deep integration of delivery platforms into daily consumer life [3] - The report emphasizes the importance of seasonal adjustments to better observe potential sales trends [3]

Summary of Key Points Core Insights - The report indicates that micro and small enterprises (MSEs) in China experienced a slight increase in operating income in Q4 2024, with a year-on-year decrease of 1.5% and a quarter-on-quarter increase of 6.5%. The average operating income was 145,000 yuan, while the average net profit margin improved to 5.1% [3][22][23]. Group 1: Operating Conditions - In Q4 2024, MSEs faced significant market demand pressure, with 52.1% of respondents indicating this as a major concern, up from 51.3% in the previous quarter. The cost pressures from rent, raw materials, and labor also increased, with raw material costs rising nearly 10 percentage points year-on-year [4][28][29]. - The average cash flow duration for MSEs remained stable at 3 months, with 10% unable to maintain operations due to cash flow issues, a slight improvement from previous quarters [3][25][27]. Group 2: Financing Conditions - Financing demand among MSEs remained stable, primarily aimed at meeting daily operational needs, with 61% indicating a need for external financing. The proportion of financing from traditional banks increased, with 20% of MSEs relying on this source in Q4 2024 [5][36][37]. - The average loan amount obtained from financial institutions decreased to 355,000 yuan, reflecting a downward trend in financing scale despite an increase in the success rate of loan applications [39][40]. Group 3: Digital Transformation and Policy Support - The proportion of MSEs engaging in online sales rose to 53.7%, and the use of electronic information systems increased to 74.3%, indicating a slight expansion in digital operations [6][7]. - The confidence index for MSEs dropped to 48.9 for Q1 2025, indicating a return to pessimism, particularly in market demand and revenue expectations [7][12]. Group 4: Economic and Environmental Outlook - MSEs exhibited conservative expectations regarding micro and macroeconomic conditions, with a negative outlook on overall price levels (CPI) for the next 12 months, reflecting deflationary concerns [6][12]. - Satisfaction with the business environment improved, with 51.4% of MSEs expecting local conditions to improve in the coming year, although regulatory fairness remained a significant concern for 29.6% of respondents [5][12].