42% net increase in S'pore F&B entities from 2015 to 2025, more formations than cessations: MTI

Singapore saw a 42 per cent net increase in food and beverage (F&B) entities between 2015 and 2025, said Minister of State for Trade and Industry Alvin Tan on Feb. 4.

Speaking in parliament, he added that the formations of F&B outlets outpace cessations in most years.

Tan was responding to a written question by Bishan–Toa Payoh GRC MP Saktiandi Supaat on the statistics of F&B outlet closures over the past decade.

He said that while the Accounting and Corporate Regulatory Authority (ACRA) tracks and publishes information on the formation and closure of business entities, the government does not track the breakdown between standalone outlets, local chains and foreign chains.

"The food services sector is highly competitive due to low barriers of entry, high product substitutability and rapidly shifting consumer preferences," Tan said.

He also emphasised that the Singapore government values the nation's local heritage and takes steps to preserve and sustain in the F&B landscape, such as establishing an inter-agency task force for Heritage Businesses, Traditional Activities and Cultural Life in 2025.

On the support provided by SME centres to local independent operators, Tan said that MTI's statutory board Enterprise Singapore works "very closely" with heartland shops and SMEs.

He cited several examples, including the recent introduction of the food services productivity report, which enables SMEs to benchmark against peers and adopt better practices, and the FoodX programme, which encourages F&B businesses to outsource operationally challenging parts of their preparation. 

MTI also works in tandem with the Association of Trade and Commerce to support SMEs and heartland merchants, he added.