Cathay Cineplexes Ceases Operations

This shift is not confined to cinemas. The overall retail sector in Singapore is navigating choppy waters, with forecasts suggesting a slowdown in the latter half of 2025 due to a cooling labour market and broader economic uncertainty. While overall retail market value is still projected to grow, this expansion masks underlying weaknesses in specific segments like department stores, apparel, and jewellery, which continue to see sales contract. The increasing strength of the Singapore dollar also plays a role, encouraging residents to spend overseas while making the country more expensive for tourists, thereby dampening domestic sales.

The liquidation of a major tenant like Cathay creates immediate financial distress for commercial landlords, who are already grappling with a delicate market. While prime office rental space in the CBD shows resilience, islandwide retail vacancy rates rose to 6.6% in the first quarter of 2025. The failure of an anchor tenant can trigger a domino effect, reducing foot traffic and making it harder for surrounding smaller businesses to survive, further pressuring property owners and investors who rely on rental income.

This preference for experiences over traditional goods, combined with a sharp eye for value, is forcing businesses to innovate rapidly. The success of online marketplaces and the rise of social commerce highlight a move towards a more interactive and personalised retail experience. Businesses that fail to adapt to this new reality, like many traditional cinema operators, find themselves unable to compete with the convenience and variety offered by streaming platforms and other forms of digital entertainment.

In response, a majority of residents are now actively prioritising financial management. The primary focus has shifted towards building up savings, maintaining stable income, and creating robust emergency funds. However, this caution can also lead to inertia, as less than a quarter of adults feel confident in their ability to invest their money, preferring the perceived safety of saving over the potential for growth. This hesitation, while understandable, creates its own risk: the erosion of purchasing power over time due to inflation.

Furthermore, the same high-interest-rate environment that squeezes businesses also tightens its grip on consumers. Rising benchmark rates translate directly into higher monthly payments for those with variable-rate loans, effectively reducing disposable income even for those who remain employed. This dual pressure of potential job insecurity and rising debt servicing costs creates a precarious financial situation for many, where the buffer between solvency and delinquency is shrinking.

A crucial first step is the reinforcement of emergency funds. The traditional advice of having three to six months of living expenses saved is no longer a conservative suggestion but a baseline necessity in a market where job security can be unpredictable. For those with dependents or significant financial commitments, aiming for a larger buffer of nine to twelve months provides a more realistic safety net against prolonged unemployment or a sudden loss of income.

​Secondly, the current economic shifts demand a proactive approach to career management and reskilling. The struggles of the retail and F&B sectors stand in contrast to the resilience seen in areas like asset management, pharmaceuticals, and technology. Individuals should identify the durable skills required in these growing sectors—such as data analytics, digital marketing, and AI proficiency—and pursue relevant training. This strategic reskilling is not just about finding a new job if laid off, but about building a more resilient career path that is aligned with Singapore's economic future. This forward-looking strategy ensures that one's professional value keeps pace with the evolving demands of the job market.