As the luxury sector sees a global slowdown, Singapore, one of its key markets, is being impacted by the slow return of Chinese tourism. While high-spending Chinese visitors are returning to some markets, including cities like Paris and Milan, ‘the recovery in tourist spending on personal luxury goods overall is uneven and the effects of the pandemic are still very visible across some key luxury shopping destinations like Singapore,’ said Euromonitor International. Total international luxury shopping on personal luxury goods, while booming post-pandemic for some brands, still remains at only 74% of its 2019 peak. It is not expected to reach full recovery until 2025, with much of the fall being attributed to the absence of Chinese tourists.

Despite that cautious outlook, retail sales of luxury goods in Singapore increased by 11% in 2023 in current terms, to a total of 12.4bn Singapore dollars, or $9.1bn, according to Euromonitor. However, a record-breaking money laundering case in the city state, involving accused Chinese nationals, could potentially dampen demand in the short term for luxury goods as high-net worth individuals could avoid attracting unwanted attention. Singapore is home to more than 300,000 people with a net wealth above $1mn. This number is set to increase to more than 400,000 people by 2030, according to Euromonitor International.