The 3 powerhouses of Singapore's economy slowly faltering
Guess which companies are now overtaking Singapore's 3 main growth drivers - manufacturing, wholesale, and finance?
According to a release, this year’s Fastest Growing 50 rankings have seen a dramatic change in the make-up of Singapore’s best performing companies.
Where once Manufacturing, Finance and Wholesale dominated the list, this year marks the rise of two new pillars of the Singapore economy - Services and Construction.
The 2012 Fastest Growing 50 List (FG50) - compiled by DP Information Group (DP Info), Singapore’s leading provider of business and credit information – identifies the most exciting and dynamic companies in the Republic.
To qualify, a company must achieve a minimum of 10% turnover growth every year for the last three years while remaining profitable each year. The qualifying companies are then ranked by their three-year Compounded Annual Growth Rate (CAGR), with the top 50 receiving the prestigious FG50 Award.
In just five years, the rise in the number of Service and Construction companies has only been matched by the decline in the number of Manufacturing, Finance and Wholesale companies.
Five years ago, Services companies had just one winner in the FG50 list. Today there are 10, representing 20% of the list. The Construction sector has also done well, increasing its representation from 2 to 5 during the same period.
The two traditional powerhouses of the Singapore economy, Manufacturing and Wholesale, have seen their representation decline from 19 wholesale firms to 15, and from 12 Manufacturing firms to just 5.
The impact of the global financial crisis can best be seen in the Finance sector which is without a single company in the FG50 for a second consecutive year – falling from a high of 7 companies in 2007.
Ms Chen Yew Nah, Managing Director of DP Info, said the changes in the representation of industries in the FG50 reflect the shifts in the wider Singapore economy.
“There is a distinct shift taking place in the Singapore economy. The last few years has seen some companies record blistering growth, especially Services and Construction firms.”
“Manufacturing, Wholesale and Finance have long been the bedrock industries upon which the Singapore economy is built, and they continue to be vital contributors to growth and employment.”
“It is not that companies in these sectors are not growing – it is that companies in other sectors are now growing faster.”
“The increase in the Services sector is good news for Singapore as it is one of the industries the Government has targeted to lead the next wave of Singapore’s growth,” Ms Chen said.