THE SUSTAINABILITY OF SINGAPORE �S RETAIL SECTOR THROUGH A MODELLING APPROACH

Abstract

The retail sector contributes to the Singapore’s economy in many ways and has been an integral component to the economy. With so many exciting events and construction in the pipeline, it is almost apparent to anticipate great changes to the retail landscape. As such, understanding the dynamics and structural behaviour has become pertinent in order to establish an accurate outlook of Singapore’s retail sector for investors and researchers. This can be substantiated with a detailed retail REMA, followed by econometric model estimations of the key performance indicators such as rent, capital value and net space absorption. These models incorporate an autoregressive approach and are supported by the demand and supply drivers underpinning it. This ensures that the estimation and forecasting of these models are backed by strong economic fundamentals. It will then be followed by a forecast of the key performance indicators of Singapore’s retail sector for a short-run basis.