Getforme Singapore KEY SURVEY FINDINGS ON SERVICES SECTOR 2003 FrontPage Edition 17 AUGUST 2005

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Key Survey Findings on Services Sector 2003

Source: www.singstat.gov.sg

Singstat statement on Economic Surveys Series 2003 - Release of Key Survey Findings on the Services Sector

THE SERVICES SECTOR

ECONOMIC SURVEYS SERIES Reference Year 2003

I. OVERALL SERVICES SECTOR’S ECONOMIC SHARE

The services sector is one of the key pillars in the Singapore economy. The sector contributed to about 63.0 per cent of total GDP and 68.9 per cent of total employment in 2004 (Chart 1).

In 2003, Singapore’s GDP share of services was closer to that of Taiwan (67.8 per cent) while the employment share was comparable to that of Germany (70.7 per cent) (Chart 2).

Sources: OECD – National Accounts of OECD countries, ADB Key Indicators 2004, Hong Kong Census and Statistics Department.

II. COVERAGE OF ANALYSIS

The services sector is diverse and encompasses a wide range of heterogeneous activities. The analysis presented in the following sections is based on data collected from the Annual Survey of Services¹ conducted by the Singapore Department of Statistics.

The analysis focuses primarily on services establishments in the private-sector group within the overall services sector, excluding institutions under the purview of the Monetary Authority of Singapore (i.e. banks and finance, securities & insurance companies). Services provided by the government sector (i.e. government ministries and departments) are also excluded.

III. ECONOMIC PERFORMANCE

The services sector² comprised 135,000 establishments in 2003. The sector employed a total of 949,500 workers, or an average of 7 workers per establishment.

Total operating receipts generated by the sector increased by 15.0 per cent, from $609.1 billion in 2002 to $700.5 billion in 2003, largely attributed to the growths registered by wholesale trade of petroleum & petroleum products and computers, telecommunications & office equipment. Correspondingly, operating receipts per establishment rose by 9.7 per cent during the same period.

Total operating expenditure incurred in 2003 was $655.8 billion, an increase of 13.6 per cent over the previous year’s total of $577.0 billion.

Total operating surplus rose from $47.3 billion in 2002 to reach $61.3 billion in 2003. This represented an increase of 29.7 per cent, mainly due to the strong growth in financial & insurance services3. On a per establishment basis, operating surplus increased by 23.8 per cent to $454,200 in 2003.

Total value added generated amounted to $76.8 billion in 2003, a rise of 3.8 per cent over the previous year. However, value added per establishment dropped from $574,900 in 2002 to $569,100 in 2003.

IV. MAIN ACTIVITIES IN SERVICES

The services sector comprises the following main groups:

- Wholesale and Retail Trade (WT & RT)

- Accommodation and Food & Beverage Services (Acc & F&B)

- Transport and Communications (TP & Comm)

- Financial and Insurance Services³ (Fin & Ins)

- Real Estate and Business Services (RE & BS)

- Community, Social and Personal Services (Com, Soc & Pers)

(Abbreviations used in charts and tables)

The services sector was mainly made up of firms engaged in wholesale and retail trade, which accounted for 41.4 per cent of the total establishments (Chart 3). They were also the largest employer, engaging 31.6 per cent of the sector’s total workforce. However, they employed an average of 5 workers per establishment, which was lower than the sectoral average of 7 workers.

On the other hand, accommodation and food & beverage services, as well as transport and communications had larger average employment sizes of 19 and 13 workers per establishment respectively.

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¹ Detailed coverage of the survey is provided in the Explanatory Note.

² Detailed list of services industries covered in the sector is provided in the Explanatory Note.

³ Data for this group exclude institutions under the purview of the Monetary Authority of Singapore, viz banks and finance, securities and insurance companies. Detailed list of financial & insurance services activities covered in this group is provided in the Explanatory Note.

Source: Singapore Department of Statistics Press Release 16 Aug 2005