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Although Singapore boasts a thriving economy, not every industry there is in good shape. Some of them are not conducive to the success of new companies. Hence, it makes good sense for new business owners to stay out of these rather unprofitable industries and instead turn to other fields.

Singapore is a good place for foreign investors and locals to launch a startup. Even though the startup may face a lot of challenges in the initial stage, it is often rewarding in the long run if you do it right. However, there are some businesses you should avoid in Singapore because of the low success rate.

Of course, no one can assure you whether a business will fail or succeed, as it eventually depends on how you run it. But we can measure the chances whether a business will survive based on the external and macroeconomic factors. Thus, it is crucial for you to conduct a thorough research on which business opportunities in Singapore fit your requirements, suit your needs, and understand how corporate tax in Singapore can benefit your business.

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5 Business Ideas to Avoid

We have compiled a list of 5 business opportunities that might invoke your interest, but you might want to think twice as most people are not doing well in these businesses.

1)      Restaurants

The golden rule that applies to a startup business is to get into a niche which has not been saturated already. This not only gives you the first mover’s advantage, but also allows you to target market segments that have not been tapped yet, meaning more sales and newer customers. Many people in Singapore have the tendency to eat at their routine outlets because of habit, and it is difficult to gain their loyalty. Despite the fact that this place is well connected to other countries, is easily accessible, and attracts a lot of tourists, there is demand for food with fine quality and taste, and plenty of people are willing to spend great amounts of money for recreational dining, the profit margins in such an industry will always remain low because of the huge number of competitive restaurants present.

2)      Baby Daycares

It has become more and more difficult to run a profitable daycare center for babies and toddlers. For starters, there is an additional amount of applications, and documentation that has to be filled in and submitted if you want to take on such an initiative. Secondly, there is the stringent laws and policies that owners of day care center have to make sure are kept at all times. It is also very difficult to employ well trained and adequately educated nurses and nannies. Nowadays, there is a trend for almost all major companies to have special nurseries or daycares built on their own venues. Parents who are employed in such organizations prefer to leave their children in those day care centers, as it saves them from the hassle of having to pick and drop their child and because more of the employees get a discount or are offered this facility as a perk to their job.

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3)      Tuition centers

Statistics reveal that the profitability of tuition centers has decreased since year 2007. This is because parents prefer to have their children taught by MOE qualified teachers instead.

4)      Interior Decorating

Bundling different types of businesses in Singapore has become more and more prevalent, which is why the renovations or construction companies have expanded to offer services such as interior decorating and designing. The costs for such services are usually included in the package deals, so people would prefer a one stop solution instead of going to different agencies for individual problems. In addition to that, people in this country are still resistant to the idea of, say for example, paying for the choice of color of wall paint, on top of having to pay for actually painting the wall.

5)      Selling T shirts

People in Singapore are brand conscious, and they prefer to go to malls and famous global brands to buy T-shirts, so it will be difficult to establish a brand name for yourself quickly. Also, the competition in this industry is fierce.

5 Business Ideas to Avoid in Singapore FAQs

Can I run an online business without incorporating in Singapore?2020-11-20T11:59:02+08:00

Nope, you must register a company to run your online business. 

As a foreigner, can I be the shareholder of the company?2020-11-20T11:58:47+08:00

Yes, you can. 

Is it mandatory to have a Singaporean/ PR to incorporate a company in Singapore?2020-11-20T11:58:34+08:00

Yes, to incorporate a company in Singapore, you need at least one local resident. As a foreigner, you can appoint a nominee director or get an employment pass. 

What are the popular businesses in Singapore?2020-11-20T11:54:51+08:00

Some of the popular businesses in Singapore are laundry, online marketing, e-commerce, financial services, cleaning service, content writing and consulting. 

2021-01-27T17:09:09+08:00March 17, 2014|0 Comments
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