Finance firms were the most profitable.
The combined profit of top 1000 companies in Singapore (S1000) increased by 10.5% year-on-year (yoy) to $182.8b this year.
According to the report by Experian’s arm DP Information Group (DP Info) and EY, the combined profits of S1000 companies expanded by $36b between 2013 and 2018 with a compound annual growth rate of 4.5%.
Businesses in the finance sector were found to be the most profitable with each company recording an average profit of $811.5m. They are followed by property sector with an average profit per company of $428.6m.
“Singapore’s top companies are doing what they do best – generating revenue and remaining profitable. We are seeing increased profits from companies in most industry sectors in Singapore, which is a sign of an improved business environment,” said James Gothard, general manager for Credit Services & Strategy of Experian in Southeast Asia, in a press release.
Meanwhile, the profit growth of S1000 companies are attributed to improved margins, which expanded by 11.4% yoy.
The rose in profits is also expected to have a flow effect to the wider economy.
“Having a strong and profitable corporate sector has always been an element of Singapore’s economic success. When companies are doing well, the rest of Singapore also does well,” Gothard added.
Meanwhile, the profit of top 1000 small and medium enterprises in the country plummeted 17.1% to $2.9b.
The S1000 ranks the largest 1,000 companies in Singapore by revenue.
More From Singapore Business Review