SINGAPORE, July 7 — As luxury spending slows in markets like China and the United States, Singapore is bucking the trend — and retailers are cashing in.

According to new data from Euromonitor International, and reported by Bloomberg today, luxury sales in the city-state are set to rise by 7 per cent this year to S$13.9 billion (RM46 billion), making it the best-performing Asian market outside Japan in 2024.

This growth puts Singapore ahead of bigger regional shopping meccas like China, Japan and South Korea — no small feat for a city that’s just 280 square miles in size with a population of six million.

By 2026, luxury sales in the city are expected to return to their pre-pandemic peak of S$14.7 billion.

For high-end brands feeling the pinch elsewhere, Singapore has become a financial safe haven and a strategic launchpad.

The country accounted for the third-largest share of luxury store openings in Asia-Pacific last year (excluding mainland China), according to commercial real estate firm Savills.

“Singapore has proved to be a very stable place for wealthy people. That has created a very strong local base for the luxury market,” said Jonathan Siboni, founder and CEO of consultancy Luxurynsight, to Bloomberg.

“Singapore is an oasis in the desert.”

Wealth in Singapore is not just growing — it’s being flaunted.

Median household employment income has climbed for five straight years.

The city now boasts more than 240,000 millionaires, drawn by its low-tax environment, stable government and thriving finance sector.

“Singapore has transformed itself into a testing ground for brands, not just for South-east Asia, but for blending East and West,” Angelito Perez Tan, Jr., CEO of luxury consultancy RTG Group Asia, reportedly said.

“These aren’t just gimmicks, they’re strategic soft launches that test how consumers engage emotionally with the brand.”

That emotional pull is translating into spend.

Malls like The Shoppes at Marina Bay Sands are offering VIP concierge services and early previews of luxury collections. At Raffles City, 21 beauty brands — including Chanel, Dior and Gucci — are staging high-profile pop-ups this year.

“Spending is flowing across all segments of the luxury industry,” Irene Ho, CEO of The Luxury Network Singapore, was quoted as saying.

“We’re seeing invitation-only events several times a week — it’s all about ultra-personalised shopping now.”

Tourists are still a key driver, with retail spend from visitors climbing to S$3.9 billion in the first nine months of 2024, up 5 per cent from a year earlier.

Shoppers from China, Indonesia, India and the US continue to flow in, but it’s the trust in Singapore’s institutions that’s keeping the high-net-worth dollars flowing.

The country’s crackdown on illicit wealth — most notably a S$3 billion money laundering scandal last year — hasn’t scared the rich away. If anything, it’s enhanced Singapore’s appeal.

“It showed that the system works, and that’s exactly what matters to legitimate high-net-worth individuals,” RTG’s Tan reportedly added.

“When there’s that kind of trust, spending naturally follows.”

Still, not everyone is on board the luxury train. Singapore’s government is under pressure to close the wealth gap, balancing the need for progressive taxes with the risk of driving billionaires to lower-tax cities like Dubai.

That tension hasn’t slowed luxury’s momentum yet — but it may shape the next phase of Singapore’s retail boom.

For now, as the rest of the region hits the brakes, Singapore is speeding ahead — and luxury brands are more than happy to hitch a ride.

High-end spending in the Lion City is expected to jump 7% to S$13.9 billion this year, outpacing China and South Korea amid global slowdown