3 Industries That Are Growing In Singapore
When investing, we would ideally want to find companies that are growing. The most direct way to unearth growing companies would be to look at industries that are growing. Here are three growth industries in Singapore.
Education is big business in our Garden City. With a growing middle class and a lower birth rate, parents are putting more emphasis on their children’s education. But it’s not just about kids – there’s also adult education to consider. Through the SkillsFuture initiative, the Singapore government has provided a grant of S$500 worth of credit for all Singaporeans aged 25 or above to use for their professional training.
All these factors may help in pushing up demand for education services in Singapore.
Food and beverage
Singapore is a nation of food lovers. The food and beverage sector in Singapore is extremely competitive, but there is still a clear sign of growth within the food catering space.
According to the Department of Statistics Singapore, food catering has been the fastest growing area in the F&B space in Singapore. This could mean that catering companies stand a higher chance of growing in the future, together with their market.
If you haven’t heard, Terminal 4 in Changi Airport opened last month. More importantly, there’s also Terminal 5 to look forward to. According to the plans of the Changi Airport Group, Terminal 5 is set to be ready by the mid-2020s, and it is expected to have a handling capacity of more than 50 million passengers per year. This is more than the current capacity of Terminal 1,2, & 3 combined.
On top of these developments, Terminal 1 is currently under expansion, with the development of the Jewel mall. This will help boost Terminal 1’s capacity to about 28 million passengers annually.
When we put all the changes happening at Changi Airport together, there is huge potential for growth for the aerospace industry in Singapore. With a high likelihood for a large increase in air traffic flying into and out of Singapore in the future, all of the services related to air travel may positioned for growth in the years ahead.
A Foolish Summary
A rising tide will lift most boats. Instead of hunting for stocks in struggling industries, if we are able to spot a growing industry, we may have a higher chance of picking companies that have good long-term growth prospects. What I’ve shared above are three sectors that I feel may provide that growth potential for investors in the next few years.