Chart of the Day: Supermarkets' revenue to ride on 6.9m population

Bigger population, bigger revenue opportunities.

According to CIMB, while the construction sector will benefit, there are limits to productivity improvements in the construction industry and it is likely that a sizeable construction labour force will still be needed. 

This should translate into business opportunities for worker dormitory player, Centurion. As much as it is not a glamorous business, rates for lodging of construction foreign labours are on the rise.

Here's more from CIMB:

With a larger population, revenue opportunities should also expand for a whole host of other businesses. The enlarged population must result in larger revenue opportunities for supermarkets such as Sheng Siong where there is an established relationship between higher grocery retail revenue and a larger population.

Courts Asia should also see higher revenue opportunities as the new additions to the population will surely need IT products and furniture.

The push towards a 6.9m population could also spur demand for various services in general. Depending on the profile of the new addition to the population, there could be higher demand for domestic help and childcare services.

Perhaps it is time to explore setting up childcare centres and elderly homes. Casinos could be another unintended beneficiary should the growing foreign population additions translate into a larger captive market for the two casinos.