Net formation of businesses down in January-September 2019

There were fewer firms formed in the logistics, business services and construction sectors.

In the first nine months of 2019, the total net formation of business entities in the economy was around 9,900. This is about a quarter lower than the average of around 13,800 recorded over the same period between 2014 and 2018, senior minister of state for trade and industry Chee Hong Tat said in a parliamentary reply.

Most sectors saw a fall in the net formation of business entities during this period, including the transportation & storage, business services and construction sectors.

“Heightened economic uncertainties in the global economy and the resulting slowdown in the Singapore economy are likely to be factors contributing to this trend. MTI expects the net formation of businesses to remain subdued for the rest of 2019,” Chee said.

To address this, MTI looks to develop new sectors such as agri-tech and precision medicine and support companies to tap on external growth opportunities.

“We are fostering a pro-enterprise environment by lowering the barriers to entry and exit for businesses. For instance, MTI launched the GoBusiness Licensing portal for food services on 31 October, which reduces the number of regulatory touch-points for business owners from fourteen to one, and the number of data fields required from more than 800 to below 100,” Chee added.

MTI eyes extending lower licence fees and quicker processing time to other sectors, such as retail and environmental services.