Singapore’s Top 1000 Companies Generates Highest-Ever Turnover of S$3.15 Trillion in 2019 Ranking
- Singapore 1000 companies also enjoyed a second consecutive year of double-digit profit growth and set a new combined profit record of S$210.7 billion
- Services, Information & Communications and Finance sectors witnessed an upward growth trajectory in terms of combined turnover; in line with Singapore’s transformation towards a service and a digital economy
- 2,600 companies have a turnover of over S$100 million, the highest ever in five years which demonstrates capability growth among Singapore corporates
SINGAPORE, 29 January 2019 – Singapore’s top 1000 companies generated the highest combined turnover and profits in the entire 32-year history of the rankings. The Singapore 1000 (S1000) companies produced a combined turnover of S$3.15 trillion, surpassing the S$3 trillion record set in 2016. This also represents a 13.0% year-on-year (y-o-y) growth from S$2.79 trillion in 2018.
Figure 1: Singapore 1000 Combined Turnover 2014 – 2019
The S1000 study ranks the largest 1,000 companies in Singapore by turnover and is produced by DP Information Group (DP Info), part of Experian, and co-produced by EY. It is presented together with the Singapore SME 1000 (SME1000) rankings which measures the largest 1,000 small and medium enterprises (SMEs) by turnover. To produce this year’s rankings1, DP Info uses its unique database of audited financials from 1 June 2017 to 31 May 2018 (2019 ranking period) of over 70,000 companies, including private exempt company financials, which are voluntarily submitted for the rankings and are unavailable through public sources.
Figure 2: Singapore 1000 Combined Profits 2014 – 20192
S1000 companies enjoyed a second consecutive year of double-digit profit growth and superseded the previous combined profit record of S$182.8 billion set in 2018. They recorded a combined profit of S$210.7 billion in 2019, representing a 15.3% y-o-y profit growth from 2018.
“Many of Singapore’s top companies have broadly benefited from the better than expected economic growth experienced during the ranking period3, evidenced by the second consecutive year that a new combined profit record has been set by these companies. Together with this year’s record turnover, Singapore’s business-friendly ecosystem continues to provide opportunities for companies to grow sustainably and tap on regional opportunities,” said Mr James Gothard, General Manager, Credit Services & Strategy SEA of Experian.
Steering Towards a Service and a Digital Economy
Services, Information & Communications and Finance sectors saw an upward growth trajectory in terms of combined turnover. This represents a compound annual growth rate (CAGR) of 10.1% based on the average CAGR of the three sectors over the past five years. Specifically, the Services sector saw the highest increase in combined turnover among all sectors, recording a 21.9% y-o-y growth. This was followed by the Information & Communications and Finance sectors which experienced a y-o-y combined turnover growth of 19.8% and 15.3% respectively.
Mr Gothard said, “It is encouraging to see these 3 sectors continue to do well and respond to the opportunities and support which have fuelled their success. With Singapore’s focus on industry transformation through digitalisation, key enabling sectors such as Services, Information & Communications and Finance are now reaping revenue rewards through the increase in projects across the economy as a whole.”
2019 also witnessed more companies having an annual turnover of more than S$100 million within the past five years. There are now 2,600 companies with an annual turnover of over S$100 million, an increase from 2,414 companies in 2018. This signifies capability growth among Singapore-based corporates that will enable them to remain competitive.
Singapore SME 1000 Companies Recovering
On the small and medium enterprises (SMEs) front, the Singapore SME 1000 (SME1000) companies saw a recovery in both their combined turnover and profits after the decline recorded in 2018, where it decreased y-o-y by 11.8% and 17.1% respectively. This year, SME1000 companies have seen their combined turnover increasing by 1.7% to S$27.2 billion.
Another positive sign of recovery among SMEs this year is that almost four-fifths of SME1000 companies are now profitable, where combined profits have increased by 16.0% to S$3.3 billion. Leading the profit growth increase was the Retail sector, where profits increased y-o-y by 111.8%, raking in a total of S$136.6 million in profits in 2019. This was followed closely by the Finance sector with profits of S$305.3 million, representing a y-o-y profit growth of 103.6%, and is a testament to the sector’s growth potential.
“Overall, Singapore SMEs have performed reasonably well despite the challenging macroeconomic conditions. Among Singapore’s top 1000 SMEs, we have seen similar growth trends in the combined turnover of Holdings and Finance sectors, reflecting the national initiative to strengthen Singapore’s position as a global financial centre. Moving forward, we foresee the opportunity of a growth trajectory among SMEs as they continue to embark on their path towards digitalisation to drive greater productivity and sustain growth,” said Mr Gothard.
Mr Max Loh, EY Asean and Singapore Managing Partner from co-producer, Ernst & Young LLP, adds: “Based on a separate 2018 study by EY on the growth ambitions in the Singapore middle market, intelligent automation and machine learning have moved centre stage as vital enablers to growth. It is important that businesses go beyond identifying technologies with the traditional roles of improving process efficiencies and financial data, to focus on the innovative roles of improving customer experience and creating new business models, so as to deliver greater value.”
: 2019 “Singapore 1000 & SME 1000” Rankin Criteria: https://www.dpgroup.com.sg/s1000/About/CriteriaS1000
: Excluding loss-making companies.
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By Experian 01/29/2019