1
Key Indicators of The Services Sector
1
2012
37%
7%
5%
6%
26%
19%
Total
Establishments
150,794
5.0%
45%
13%
3%
6%
26%
7%
Operating
Surplus
$91 Bil
0.2%
87%
4%
1%
2%
5%
1%
Operating
Receipts
$2,355 Bil
6.1%
37%
13%
4%
8%
26%
12%
Value
Added
$173 Bil
3.4%
88%
4%
1%
2%
4%
1%
Operating
Expenditure
$2,289 Bil
6.3%
1
Exclude financial & insurance services and public administration activities.
2
THE SERVICES SECTOR
Number of Establishments
In 2012, there were about 150,800
establishments in the services
sector
1
, an increase of 5.0 per cent
over 2011.
Wholesale & retail trade was the largest industry group in the services sector, accounting for 37.2 per cent
of the total number of establishments in 2012. This was followed by business services which made up a
significant share of 26.4 per cent of the overall number of establishments. On the other hand,
accommodation & food services formed the smallest industry group (4.7 per cent).
130,338
139,080
132,986
136,005
143,676
150,794
120,000
125,000
130,000
135,000
140,000
145,000
150,000
155,000
2007 2008 2009 2010 2011 2012
N
u
m
b
e
r
Services Sector
1
0
10,000
20,000
30,000
40,000
50,000
60,000
2007 2008 2009 2010 2011 2012
N
u
m
b
e
r
Wholesale & Retail Trade
0
10,000
20,000
30,000
40,000
50,000
60,000
2007 2008 2009 2010 2011 2012
N
u
m
b
e
r
Transport & Storage
0
10,000
20,000
30,000
40,000
50,000
60,000
2007 2008 2009 2010 2011 2012
N
u
m
b
e
r
Accommodation & Food Services
0
10,000
20,000
30,000
40,000
50,000
60,000
2007 2008 2009 2010 2011 2012
N
u
m
b
e
r
Information & Communications
0
10,000
20,000
30,000
40,000
50,000
60,000
2007 2008 2009 2010 2011 2012
N
u
m
b
e
r
Business Services
0
10,000
20,000
30,000
40,000
50,000
60,000
2007 2008 2009 2010 2011 2012
N
u
m
b
e
r
Recreation, Community & Personal Services
1
Exclude financial & insurance services and public administration activities.
3
THE SERVICES SECTOR
Operating Receipts
Total operating receipts of the
services sector rose to $2,355.3
billion in 2012, 6.1 per cent higher
than 2011. Operating receipts per
establishment increased 1.1 per
cent during the same period.
All industry groups within the services sector registered growth in operating receipts in 2012 compared to
the previous year. Business services recorded the largest year-on-year increase of 13.5 per cent, due partly
to higher operating receipts by professional services firms such as head offices, business & management
consultancy firms and architectual & engineering firms. Growth recorded by the other industry groups
ranged from 3.5 per cent (transport & storage) to 8.8 per cent (information & communications) in 2012
over 2011.
1,497
1,678
1,461
1,800
2,220
2,355
0
500
1000
1500
2000
2500
2007 2008 2009 2010 2011 2012
$
B
i
l
l
i
o
n
Services Sector
0
500
1000
1500
2000
2500
2007 2008 2009 2010 2011 2012
$
B
i
l
l
i
o
n
Wholesale & Retail Trade
0
20
40
60
80
100
120
2007 2008 2009 2010 2011 2012
$
B
i
l
l
i
o
n
Transport & Storage
0
20
40
60
80
100
120
2007 2008 2009 2010 2011 2012
$
B
i
l
l
i
o
n
Accommodation & Food Services
0
20
40
60
80
100
120
2007 2008 2009 2010 2011 2012
$
B
i
l
l
i
o
n
Information & Communications
0
20
40
60
80
100
120
2007 2008 2009 2010 2011 2012
$
B
i
l
l
i
o
n
Business Services
0
20
40
60
80
100
120
2007 2008 2009 2010 2011 2012
$
B
i
l
l
i
o
n
Recreation, Community & Personal Services
4
THE SERVICES SECTOR
Operating Expenditure
Total operating expenditure
incurred by the sector amounted to
$2,289.1 billion in 2012, an
increase of 6.3 per cent from
$2,152.4 billion in 2011. On a per
establishment basis, operating
expenditure rose 1.3 per cent to
$15.2 million in 2012 over 2011.
Operating expenditure of all industry groups in the sector went up in 2012 compared to a year ago.
Business services recorded the highest year-on-year increase of 14.6 per cent in operating expenditure, in
tandem with the double-digit growth in its operating receipts. Transport & storage registered the lowest
increase of 3.5 per cent in operating expenditure.
1,445
1,630
1,412
1,738
2,152
2,289
0
500
1000
1500
2000
2500
2007 2008 2009 2010 2011 2012
$
B
i
l
l
i
o
n
Services Sector
0
500
1,000
1,500
2,000
2,500
2007 2008 2009 2010 2011 2012
$
B
i
l
l
i
o
n
Wholesale & Retail Trade
0
20
40
60
80
100
120
2007 2008 2009 2010 2011 2012
$
B
i
l
l
i
o
n
Transport & Storage
0
20
40
60
80
100
120
2007 2008 2009 2010 2011 2012
$
B
i
l
l
i
o
n
Accommodation & Food Services
0
20
40
60
80
100
120
2007 2008 2009 2010 2011 2012
$
B
i
l
l
i
o
n
Information & Communications
0
20
40
60
80
100
120
2007 2008 2009 2010 2011 2012
$
B
i
l
l
i
o
n
Business Services
0
20
40
60
80
100
120
2007 2008 2009 2010 2011 2012
$
B
i
l
l
i
o
n
Recreation, Community & Personal Services
5
THE SERVICES SECTOR
Operating Surplus
Total operating surplus grew
marginally by 0.2 per cent from
$90.4 billion in 2011 to $90.6
billion in 2012. Operating
surplus per establishment
dropped 4.5 per cent to
$600,600 in 2012.
Among the industry groups, all except wholesale & retail trade and recreation, community & personal
services registered growth of between 4 per cent and 7 per cent in 2012 over the previous year. Operating
surplus of wholesale & retail trade decreased 4.8 per cent to $41.0 billion in 2012. Recreation, community
& personal services recorded a smaller drop of 0.8 per cent in operating surplus.
69
67
70
84
90
91
0
10
20
30
40
50
60
70
80
90
100
2007 2008 2009 2010 2011 2012
$
B
i
l
l
i
o
n
Services Sector
0
10
20
30
40
50
2007 2008 2009 2010 2011 2012
$
B
i
l
l
i
o
n
Wholesale & Retail Trade
0
10
20
30
40
50
2007 2008 2009 2010 2011 2012
$
B
i
l
l
i
o
n
Transport & Storage
0
10
20
30
40
50
2007 2008 2009 2010 2011 2012
$
B
i
l
l
i
o
n
Accommodation & Food Services
0
10
20
30
40
50
2007 2008 2009 2010 2011 2012
$
B
i
l
l
i
o
n
Information & Communications
0
10
20
30
40
50
2007 2008 2009 2010 2011 2012
$
B
i
l
l
i
o
n
Business Services
0
10
20
30
40
50
2007 2008 2009 2010 2011 2012
$
B
i
l
l
i
o
n
Recreation, Community & Personal Services
6
THE SERVICES SECTOR
Value Added
Total value added generated by the
sector was $172.6 billion in 2012.
This represented a growth of 3.4 per
cent compared to 2011. Value added
per establishment declined 1.5 per
cent to $1.1 million in 2012.
Except for wholesale & retail trade, all industry groups registered increases in value added in 2012 over
2011. Information & communications recorded the highest value added growth of 9.0 per cent. On the
other hand, the value added of wholesale & retail trade fell 1.6 per cent to $63.5 billion in 2012.
128 130
133
154
167 173
0
20
40
60
80
100
120
140
160
180
200
2007 2008 2009 2010 2011 2012
$
B
i
l
l
i
o
n
Services Sector
0
10
20
30
40
50
60
70
2007 2008 2009 2010 2011 2012
$
B
i
l
l
i
o
n
Wholesale & Retail Trade
0
10
20
30
40
50
60
70
2007 2008 2009 2010 2011 2012
$
B
i
l
l
i
o
n
Transport & Storage
0
10
20
30
40
50
60
70
2007 2008 2009 2010 2011 2012
$
B
i
l
l
i
o
n
Accommodation & Food Services
0
10
20
30
40
50
60
70
2007 2008 2009 2010 2011 2012
$
B
i
l
l
i
o
n
Information & Communications
0
10
20
30
40
50
60
70
2007 2008 2009 2010 2011 2012
$
B
i
l
l
i
o
n
Business Services
0
10
20
30
40
50
60
70
2007 2008 2009 2010 2011 2012
$
B
i
l
l
i
o
n
Recreation, Community & Personal Services
7
THE SERVICES SECTOR
Business Costs
Remuneration was one of the top
four cost items among all industry
groups in 2012. Remuneration
formed a significant share of total
business costs for recreation,
community & personal services
(45.8 per cent), followed by
accommodation & food services
(29.5 per cent) and wholesale &
retail trade (26.8 per cent).
The major business costs incurred by firms differed among the various industries due to the diverse
activities within the services sector. For transport & storage firms, charter fees and fuels were the two
largest business cost items in 2012, accounting for 20.3 per cent and 19.9 per cent of their total operating
expenditure respectively. Rental was one of the main business costs for wholesale & retail trade and
accommodation & food services. For information & communications, royalties was the second-largest
cost item after remuneration.
Notation
Cargo : Cargo handling, airport & port charges Dep : Depreciation Pur : Purchases of goods & materials Royalties : Royalties and franchise fees
Charter : Charter fees Freight : Freight charges Pur_F&B : Purchases of food & beverages for sale Utilities : Utilities charges
Com : Commission fees Fuel : Fuel, diesel & lubricating oil Rem : Remuneration
Contract : Subcontract charges / work given out Pro : Professional & business services Rental : Renting of offices, shops & other premises
45.8
21.2
19.4
29.5
11.0
26.8
0 10 20 30 40 50 60
Recreation, Community & Personal
Services
Business Services
Information & Communications
Accommodation & Food Services
Transport & Storage
Wholesale & Retail Trade
%
Share of Remuneration to Industry Group's Business Cost,
2012
26.8
19.6
8.4
6.7
0 20 40 60
Rem
Freight
Rental
Com
%
Wholesale & Retail Trade
2
, 2012
20.3
19.9
18.7
11.0
0 20 40 60
Charter
Fuel
Cargo
Rem
%
Transport & Storage, 2012
29.5
24.6
13.1
5.4
0 20 40 60
Rem
Pur_F&B
Rental
Utilities
%
Accommodation & Food Services, 2012
19.4
18.5
17.6
7.0
0 20 40 60
Rem
Royalties
Pur
Com
%
Information & Communications, 2012
21.5
21.2
21.0
7.2
0 20 40 60
Contract
Rem
Pur
Pro
%
Business Services, 2012
45.8
11.5
7.8
5.2
0 20 40 60
Rem
Pur
Dep
Rental
%
Recreation, Community & Personal Services,
2012
2
Exclude purchases of goods & materials for sale
8
THE SERVICES SECTOR
Key Performance Ratios
Profitability Ratio
3
Profitability ratio (defined as the ratio of operating surplus to operating receipts) of the services sector was
3.8 per cent in 2012, lower than the 4.0 per cent recorded in 2011. Within the sector, all industry groups
registered similar or lower profitability ratios in 2012 compared to 2011. Business services recorded the
largest percentage point drop in profitability ratio from 21.4 per cent in 2011 to 20.1 per cent in 2012.
Earnings-Expenditure Ratio
3
Earnings-Expenditure Ratio (defined as the ratio of operating surplus to operating expenditure) for the
services sector dropped from 4.2 per cent in 2011 to 3.9 per cent in 2012. Within the sector, business
services registered the highest earnings-expenditure ratio of 24.2 per cent in 2012. On the other hand,
wholesale & retail trade continued to record the lowest ratio of 2.0 per cent.
20.5
21.4
13.9
19.8
12.0
2.2
19.3
20.1
13.8
19.1
12.0
2.0
0 10 20 30
Recreation, Community & Personal Services
Business Services
Information & Communications
Accommodation & Food Services
Transport & Storage
Wholesale & Retail Trade
%
Year 2012
Year 2011
23.9
26.2
15.5
23.3
12.7
2.3
22.1
24.2
15.3
22.5
12.7
2.0
0 10 20 30
Recreation, Community & Personal Services
Business Services
Information & Communications
Accommodation & Food Services
Transport & Storage
Wholesale & Retail Trade
%
Year 2012
Year 2011
3
Exclude non-profit organisations
9
58.0%
($100.2 Bil)
23.7%
($40.9 Bil)
12.2%
($21.1 Bil)
6.1%
($10.5 Bil)
0.0 20.0 40.0 60.0 80.0 100.0
%
Share of Value Added
THE SERVICES SECTOR
Performance By Firm Size
In 2012, firms with operating receipts of less than $1 million accounted for 78.5 per cent of the total
number of establishments in the services sector. However, their share of the sectors total value added was
less significant at 6.1 per cent.
On the other hand, firms with operating receipts of $100 million & above formed only 0.8 per cent of the
total number of establishments, but generated 58.0 per cent of the sectors total value added.
0.8%
(1,232 estabs)
3.6%
(5,435 estabs)
17.1%
(25,790 estabs)
78.5%
(118,336 estabs)
0.0 20.0 40.0 60.0 80.0 100.0
%
Share of Establishments
Establishments & Value Added by Size of Operating Receipts (OR), 2012
OR < $1Mil
$1Mil OR < $10Mil
$10Mil OR < $100Mil
OR $100Mil
10
THE SERVICES SECTOR
Summary Tables
Key Indicators of The Services Sector, 2010-2012
Industry
Establishments
(Number)
Operating Receipts
($ Billion)
Operating Expenditure
($ Billion)
2010 2011 2012 2010 2011 2012 2010 2011 2012
Total Services 136,005 143,676 150,794 1,799.9 2,219.9 2,355.3 1,738.2 2,152.4 2,289.1
Wholesale & Retail Trade 53,052 54,630 56,111 1,544.9 1,944.6 2,057.0 1,509.3 1,903.5 2,018.3
Transport & Storage 9,624 10,524 11,076 88.7 91.6 94.8 79.7 86.2 89.3
Accommodation & Food
Services
6,529 6,853 7,091 10.7 12.7 13.7 9.3 10.8 11.6
Information & Communications 6,627 7,403 8,167 36.4 39.2 42.6 32.9 35.2 38.4
Business Services 34,633 37,227 39,737 93.3 102.5 116.3 79.1 86.1 98.7
Recreation, Community &
Personal Services
25,539 27,039 28,612 25.9 29.3 31.0 27.9 30.6 32.8
Industry
Operating Surplus
($ Billion)
Value Added
($ Billion)
2010 2011 2012 2010 2011 2012
Total Services
84.0 90.4 90.6 154.3 166.9 172.6
Wholesale & Retail Trade 37.4 43.1 41.0 57.1 64.5 63.5
Transport & Storage 14.8 11.0 11.4 23.9 20.7 21.8
Accommodation & Food
Services
1.9 2.5 2.6 4.9 5.9 6.3
Information & Communications 4.8 5.5 5.9 11.2 12.4 13.5
Business Services 19.5 22.0 23.4 38.9 43.1 45.9
Recreation, Community &
Personal Services
5.5 6.4 6.3 18.4 20.4 21.7
Key Indicators of The Services Sector by Size of Operating Receipts of Firm, 2012
Size of Operating Receipts
Establishments
(Number)
Operating Receipts
($ Billion)
Operating Expenditure
($ Billion)
All Categories 150,794 2,355.3 2,289.1
Less than $1,000,000 118,336 26.7 26.2
$1,000,000 to $9,999,999 25,790 84.5 83.2
$10,000,000 to $99,999,999 5,435 160.4 149.7
$100,000,000 & above 1,232 2,083.7 2,029.9
Size of Operating Receipts
Operating Surplus
($ Billion)
Value Added
($ Billion)
All Categories 90.6 172.6
Less than $1,000,000 2.6 10.5
$1,000,000 to $9,999,999 5.5 21.1
$10,000,000 to $99,999,999 17.9 40.9
$100,000,000 & above 64.5 100.2
Note :
1 Data for 2012 are preliminary.
2 Industries are classified according to the Singapore Standard Industrial Classification (SSIC) 2010.
3 Figures may not add up to the totals due to rounding.
11
THE SERVICES SECTOR
Explanatory Note
Introduction
The Singapore Department of Statistics conducts an annual survey on the services industries to collect a
wide range of data for studies and analyses. The survey on the services industries was first conducted in
1968 for the reference year 1967 and subsequently at regular intervals. Since 1984, the inquiry was carried
out on an annual basis.
The latest survey was carried out in 2013 for reference year 2012. The reports will focus on several services
industries of importance to the Singapore economy. This report on The Services Sector is the Departments
seventh and last issue in the series for reference year 2012. This final report aims to provide a performance
overview of the services sector.
Objective
The data presented in this report are compiled from the results of the Annual Survey of Services 2012. The
objective of the survey is to gather information on the services sector for studying the structure and
performance of various activities in the sector. The data are also used for the compilation of national
accounts, input-output tables and other related studies. In addition, the results are used by policy makers,
economic planners and academicians, the business community and other interested users in their work.
Scope & Coverage
The services sector includes all establishments and statutory boards engaged in services activities excluding
financial & insurance services and public administration activities. Government ministries and departments,
foreign missions, taxi drivers, independent artistes and other individual self-employed persons are excluded.
The detailed services activities are presented below:
Wholesale and Retail Trade
Wholesale Trade
Wholesale on a fee or contract basis
Wholesale of agricultural raw materials and live
animals
Wholesale of food, beverages and tobacco
Wholesale of household goods
Wholesale of machinery, equipment and supplies
Other specialized wholesale
General wholesale trade
Retail Trade
Retail sale in non-specialised stores
Retail sale of food, beverages and tobacco in
specialised stores
Retail sale of motor vehicles, parts, accessories and
automotive fuel in specialised stores
Retail sale of information and communications
equipment in specialised stores
Retail sale of other household equipment in specialized
stores
Retail sale of cultural and recreation goods in specialized
stores
Retail sale of other goods in specialized stores
Retail trade not in stores, stalls or markets
Accommodation and Food & Beverage Services
Short term accommodation activities
Other accommodation (except residential)
Restaurants, cafes and bars
Event catering and other food service activities
Transport and Storage
Transport via railways
Other land transport
Water transport
Air transport
Warehousing and storage
Support activities for transportation
Postal activities
Courier activities
12
THE SERVICES SECTOR
Information and Communications
Publishing of books, periodicals and other publishing
activities
Software publishing
Motion picture, video and television programme
activities
Sound recording and music publishing activities
Radio programme production and broadcasting
Television programming and broadcasting
Telecommunications
Computer programming, consultancy and related
activities
Data processing, hosting and related activities; web
portals
Other information service activities
Business Services
Real estate activities with own or leased property
Real estate activities on a fee or contract basis
Legal activities
Accounting, book-keeping and auditing activities; tax
consultancy
Activities of head offices and business representative
offices
Business and management consultancy activities
Architectural and engineering activities and related
technical consultancy
Technical testing and analysis services
Research and experimental development on natural
sciences and engineering
Research and experimental development on social
sciences and humanities
Advertising
Market research and public opinion polling
Specialised design activities
Photographic activities
Professional, scientific and technical activities nec
1
Veterinary activities
Renting and leasing of motor vehicles
Renting and leasing of personal and household goods
Renting and leasing of other machinery, equipment and
tangible goods
Leasing of non-financial intangible assets
Employment and recruitment agencies
Management of human resource functions
Travel agencies and tour operators activities
Other reservation service activities
Security and investigation activities
Cleaning activities
Landscape care and maintenance service activities
Office administrative and support activities
Activities of call centres
Convention, trade show, concert and other event
organisers
Recreation, Community and Personal Services
Pre-primary and primary education
Secondary education
Higher education
Other education
Educational support services
Hospital activities
Medical and dental practice activities
Other health services
Residential care services
Social services without accommodation for the elderly
and disabled
Other social services without accommodation
Creative, arts and entertainment activities
Libraries, archives, museums and other cultural activities
Gambling and betting activities
Sports activities
Other amusement and recreation activities
Activities of business, employers and professional
membership organisations
Activities of trade unions
Activities of other membership organisations
Repair of computers and communications equipment
Repair of personal and household goods
Repair and maintenance (including inspection) of
vehicles
Other personal service activities
1
Not elsewhere classified
13
THE SERVICES SECTOR
Definition of Terms
Establishment Defined as a business or organisation unit engaged in one activity and operating in a
single location.
Operating Receipts Includes those arising from services rendered, commission charges, sale of goods and
rental of premises, machinery and equipment. It excludes additional registration fee
and certificates of entitlement for motor vehicles and motorcycles as well as betting,
sweepstakes & private lottery duties. For local branches of foreign airlines and
foreign shipping lines, operating receipts refers to the reimbursement from their head
offices for the operating expenditure they incurred.
Operating Expenditure Refers to all current expenses (except capital expenditure) connected to the business
operations such as purchases of goods and services and remuneration. It includes
depreciation and adjustment for changes in stocks and work-in-progress. It excludes
additional registration fee and certificates of entitlement for motor vehicles and
motorcycles as well as betting, sweepstakes & private lottery duties. For local
branches of foreign airlines and foreign shipping lines, operating expenditure refers
only to expenses incurred by the branch offices in providing support services to their
head offices (ie foreign airlines and foreign shipping lines) and expenses paid by
them on behalf of their head offices.
Operating Surplus Refers to the amount of operating receipts less operating expenditure plus
depreciation of fixed assets. For non-profit organizations (i.e. entities which cannot
distribute any surplus made to their shareholders) which mainly rely on funds (such
as grants and donations) other than receipts from sales of goods and services rendered
to cover their operating expenditure, operating surplus refers only to depreciation of
fixed assets.
Value Added
(At Basic Price)
Comprises operating surplus, remuneration and taxes (less subsidies) on production.
Remuneration Comprises wages and salaries, employers contribution to Central Provident
Fund/pension funds and other benefits of all employees as well as fees paid to non-
working directors.
Depreciation
The value, at current replacement cost, of reproducible fixed assets such as buildings,
plants and machinery used during a period of time as a result of normal wear and tear,
foreseen obsolescence and the normal rate of accidental damage.
Profitability Ratio Defined as the ratio of operating surplus to operating receipts. It shows the proportion
of operating receipts that is converted to profits.
Earnings-Expenditure
Ratio
Defined as the ratio of operating surplus to operating expenditure.
9 May 2014