Professional service industry in Singapore: a brief overview

The professional service industry in Singapore is one of the most developed industries, becoming the service center in not only Asia, but also the world. As it stands, Singapore professional services industry made up  6.5% of the nation’s GDP at 25 billion USD value-added worth in 2016. The industry created jobs for over 230,000 people, constituting 6.4% of its total workforce. 

The industry amid destructive Covid-19 pandemic

Since 2018, the Singaporean government has revealed a national roadmap for further developing the professional services industry in the city-state. Thus, the roadmap aims to generate an additional 5,500 occupations annually, pushing the industry’s value-add out to 31 billion USD in 2020 at a 4.6% average growth rate. 

Prior to Covid-19 pandemic, the professional services sector and the administrative & support services sector outperformed the Singapore economy. The real value-added of the professional services sector grew by a CAGR of 4.4%, outstanding real GDP growth of 3.1%. This figure shown Singapore’s continued development as a global professional service hub. Among the various segments of the sector, the highest CAGRs were seen for the (i) head offices & business representative offices; (ii) business & management consultancy; and (iii) other professional, scientific & technical services segments.

Regarding the administrative & support services sector, its real value-added expanded at a CAGR of 5.6%. Both segments of the sector experienced at a faster growth pace than the overall economy during this period. However, when compared to the decade as a whole, their growth during the more recent period was not really strong.

Yet, the Covid - 19 pandemic has unprecedentedly had a widespread devastating effect on the whole global economy. As a result, Singapore experienced a sharp plunge in the construction works and contracts in 2020, while also saw a decline in demand for advertising and market research activities. Businesses cut back their expenses on professional services during the downturn period. This has negatively impacted the professional services sector. An overall contraction of 9.7% was recorded due to contraction in the architectural and engineering, technical testing and analysis (-16%), and the other professional, scientific and technical services segments (-14%) in the same year. 

Meanwhile, the sinking in the real value-added of the rental and leasing segment weighed down the administrative and support services sector. The reason behind this decline lies in the global travel restrictions, the slower work progress at construction sites and weaker domestic economic conditions. In short, the real value-add of these sectors has still remained below pre-Covid-19 levels (Ministry of Trade and Industry, 2021)

Singaporean government give boost to professional services industry

Even before Covid-19, the Singaporean government has made a nation-wide effort to take Professional Services to the next level. Mrs Indranee Rajah, Singapore’s Second Minister for Finance, articulated that “The Professional Services sector is a growing industry with tremendous potential for job creation”. This period signals the right conditions for Singapore professional service companies to innovate world-class business solutions and forge cross-disciplinary partnerships. Thus, the government launched an industry transformation map (ITM) that will enable firms  in the industry to scale, innovate and increase their productivity. Along with that, the plan prepares Singaporeans to take on exciting new jobs such as digital product developers, data modelers and risk advisory professionals.

The Singaporean government also planned several initiatives to reskill and upskill professionals, managers, executives and technicians (PMETs), developing new competencies. Thus, the government launched further Professional Conversion Programmes (PCPs) under the Adapt & Grow project with additional programmes relevant to the professional services industry.

Additionally, the government has fostered the collaboration between higher learning institutes and firms within the professional service industry. This initiative aims to ensure relevant training and education as well as facilitate coordinations between corporations, start-ups and research institutes to strengthen and drive innovation. 

Furthermore, Mrs Indranee Rajah emphasized the professional service sectors in Singapore take steps to seize the growth opportunities. She also urged firms in the professional services industry to seriously pay attention to job redesign and the well-being of employees. Under the context of Covid-19, the digital transformation has experienced a rapid acceleration. Therefore, redesigning jobs and ensuring updated skills among employees are of importance to develop the professional service industry. 

Viettonkin as one of the leading local professional service firm in Singapore

Credited by multinational corporations (MNCs), Fortune Global 500 companies, as well as international non-governmental organizations (INGOs), Viettonkin has been positioned among the prestiged local professional service companies in Singapore. In alignment with the initiatives of the Singaporean government, Viettonkin has always upgraded the skills of its staff, ensuring the high quality of the provided services. 

Understanding the difficulties foreign investors have gone through and will experience in entering the Singapore market, Viettonkin is on its mission to help and support investors along their business journey. We provide a wide range of professional services, guiding you with the accuracy, professionalism and detailed insights in the Singapore market and legal system. Unfamiliar with the new environment, you can make undesirable mistakes. Yet, our team of top-notch experts in the industry can stand by your sides, ensuring the best support you can receive. With our assistance, you can focus on what really matters - doing business in Singapore! Let us be your reliable companion!