SINGAPORE: Singapore’s top 1000 companies have been the driving force behind the nation’s recovery from the global financial crisis (GFC), adding an additional S$1.23 trillion (US$909.68 billion) in sales in the last five years.
This translates into a compounded annual growth rate of 11.3 percent during the last five years, according to the latest Singapore 1000 Rankings (S1000) Rankings.
The S1000 ranks the top 1,000 companies in Singapore by revenue and is published with the SME1000 and the Singapore International 100. Together these rankings are the most comprehensive annual audit of the performance of Singapore’s corporate sector. DP Information Group is the ranking body and publisher of the rankings.
The Singapore International 100 (SI100) ranks the top 100 Singapore companies by their international revenue. This year’s SI100 companies generated S$225.8 billion in revenue, up from S$223.9 billion the previous year.
Among the SI100 companies, China remains the most dominant market with 36.7 percent of all international revenue coming from there. South East Asia (21.5 percent) represents the next largest market.
Europe (11.6 percent) has overtaken Oceania (10.3 percent) as the third largest market for overseas revenue while the Americas (9.3 percent) rounds up the top five.
An analysis of how each sector performed following the GFC shows commerce-wholesale companies did the best, followed by the information and communications sector and the commerce-retail sector.
Commerce-wholesale recorded the fastest growth, with a 5-year CAGR of 13.3 percent. Information and communications were close behind with 12.9 percent. The commerce-retail sector also grew strongly with a 10.2 percent 5-year CAGR.
All industries enjoyed growth during the last five years with the exception of the hospitality/F&B sector, which has seen its revenue contract by an average of 7.7 percent for each of the last five years.
Chen Yew Nah, Managing Director of DP Information Group said the result shows the resilience of Singapore’s corporate sector.
“Much of Singapore’s growth during the last five years has been due to the performance of the Singapore 1000 companies. Their ability to grow their revenue has helped Singapore to recover from the GFC and reach new heights,” says Chen.
Yew notes the commerce-wholesale sector has always been a major contributor to the nation’s economy due to Singapore’s role in facilitating international trade. The growth of the information & communications sector is a good sign as it shows Singapore’s ability to maintain its technological edge.
The F&B and Hospitality was the only sector that hasn’t grown in the last five years. However, while the larger S1000 ranked companies in the sector are seeing their combined revenue decline, F&B SMEs in the sector are seeing their revenues climb.
“Larger F&B companies now find themselves competing with the SMEs for the same market share. This may reflect the changing tastes of Singaporeans. Where once the large chains and franchises dominated the industry, a growing number of Singaporeans are choosing more boutique and independent options for accommodation as well as dining,” says Chen.
“The Singapore consumer seems to be increasingly attracted to unique and individual experiences, rather than the consistency of services offered by chains and global brands.”
