MARKET RESEARCH

For Cindy Xin

BUSINESS OPPORTUNITY 1: LANZHOU BEEF NOODLES

1. Market Size
2. Market Growth
3. Market Entry
4. Current Competitors

According to Euromonitor, Singapore’s F&B foodservice market is worth about S$8.3bn and is
expected to grow by 2.1% CAGR by 2023 led by cafés/bars, limited service restaurants, and street
stalls/kiosks. From 2008-2018, the F&B food service sector grew by 2.4% CAGR driven by the
abovementioned formats, whereas the full-service restaurants expanded by a much slower 0.8%
CAGR over the same period and is projected to grow at an even slower 0.4% over the next five years.

The F&B foodservice sector is expected to be driven by higher F&B spent per transaction, and growth
in number of transactions, accounting for 1.2ppts of Euromonitor’s 5-year 2.1% growth projection.
This underscores our belief that the mass-market segment (defined by per head spend of S$20 or
less) remains a highly viable segment with an estimated total market size of S$6.2bn (75% of
Singapore’s F&B market). Thus, operators in the slowing higher-end full-service restaurants segment
might need to operate with caution.

Companies in the mass-market segment continue to grow through acquisitions such as NTUC
Foodfare’s acquisition of Kopitiam and BreadTalk’s planned acquisition of Food Junction. Consumer
behaviour and busy lifestyles are driving a trend towards frequent eating-out, convenience, quick-
service formats, and faster payment/checkout modes including cashless and online transactions.
Higher-productivity initiatives are propelling companies towards adopting more self-service features
with less reliance on manpower at mass-market outlets.

Opportunities aside, Singapore F&B players are operating in a competitive environment with costs
challenges especially labour and rents. Rental costs especially in malls are expected to be higher in
2020 as property supply peaks in 2019 and is expected to fall from 2020 onwards. The impact
following the tightening of foreign labour dependency ratio (DRC) from 2020 is small at less than
2.5% negative swing on earnings based on our estimates. We believe such costs can be overcome if
operators are able to extract higher productivity over time especially in the areas of implementing
technology.

We believe the mid-range mass-market segment will continue to be viable compared to niche high-
end low-turnover dining concepts. With cost challenges, the mass-market segment will be able to
extract higher productivity by implementing more self-service initiatives more easily than high-end
full-service formats, as foreign worker dependency ratio is being tightened. We believe companies
will need to continuously find ways to innovate processes to improve productivity and profitability.

Address | City, County/Region, Postcode

We believe mid-to-large sized mass market F&B groups (defined by companies who are already
profitable and no long trying to be viable as a start-up) are key beneficiaries in the current F&B
foodservice environment, as they morph into multi-format, multi-cuisine, multi- brand F&B
companies.

Larger players have scale, which would enable them to 1) introduce foreign brands, while exporting
their own brands overseas for regional growth; and 2) implement technology to deliver operational
efficiencies. Smaller companies would seek to increase their operational scale to take advantage of
cost benefits via outlet expansion, building central kitchens, and eventually tapping capital and debt
markets to fund growth.

Mass-market F&B in Singapore

Eating: a cultural and social activity

We see Singapore as a melting pot of diverse cultures, which has led to its multi-cuisine atmosphere,
and a wide variety of international food from various nationalities is now widely available. The
market is very open to foods of different cultures, making it possible for various foodservice concepts
to penetrate and gain acceptance in Singapore. Eating is a pastime for many local Singaporeans,
opening up opportunities for foodservice providers to offer unique choices for good quality food.
In a recent survey conducted by Nielsen, 55% of Singaporeans eat out at out-of-home dining
establishments weekly, with about 24% dining out daily. The current trend is largely the result of our
busy and fast paced lifestyle which leads to more people eating out. We have observed an increase in
eating out frequency at restaurants and other out-of-home dining establishments by Singaporeans.
Dinner is the meal which is most often consumed outside of the home. Casual dining cafés and fast
food outlets are popular choices as 81% have stopped by a casual dining outlet, 76% preferred quick
serve (fast food) restaurants, with 64% choosing to dine at cafés (+18% from 2015). We understand
44% of Singaporeans have ordered restaurant deliveries or meal-kit delivery services online as well,
higher than the global average of 33%. Based on a past National Nutrition Survey, Singaporeans are
also eating more, with daily energy intake in terms of calories increasing over the past 20 years.

Based on data from Singstat and Ministry of Trade and Industry hosted on data.gov.sg, the estimated
value of Singapore’s F&B sales is approximately S$8.4bn each year, or about S$700m per month,
growing from over S$7.4bn in 2012 or about S$600m per month. In 2017, Singapore consumed more
than 1.3bn tonnes of meat, fruit, eggs and vegetables according to the Agri-Food & Veterinary
Authority of Singapore (AVA). Separately, data from Singstat for Singapore Retail Sales point to
S$800-900m of F&B foodservice sales per month, amounting to S$9.2bn in 2018.

According to Euromonitor, Singapore’s F&B foodservice market is worth about S$8.3bn and is
expected to grow by a 2.1% CAGR up to 2023. Growth will be driven by higher ticket size and an
increase in foodservice transactions which are forecast to grow at 1.3% and 0.8% CAGR respectively

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for the next five years. These in turn will drive per outlet sales by 1.9% CAGR, with outlet count
remaining flattish at 0.2% CAGR over the next five years.

F&B retail sales growth has generally hovered between -2.8% and 6.6% y-o-y since 2010 based on
Singstat’s F&B Services index. Since 2009, F&B sales growth based on Euromonitor and Singstat has
been at a similar rate of 1.9% and 2% CAGR respectively. We observe strong correlation between
GDP growth and F&B Services index of 0.8 since 2009 with private consumption contributing 35.4%
of 2018 GDP.

Strong correlation between GDP and Foodservice

Source: ThomsonReuters Datastream, DBS Bank

The number of fast food outlets has been growing since 2005. Even when GDP slowed in 2015 with a
decline in the number of restaurants, fast food outlets continued to grow albeit at a slower pace. The
outlook for fast food is robust given that limited service restaurants are forecasted to outgrow the
overall foodservice sector at 2.8% CAGR vs 2.1% in the next five years, according to Euromonitor. We
believe this signals a shift in the market towards convenience as lifestyles become more hectic. It is
also notable that fast food outlets outgrew other formats during the 2009 financial crisis.

Singapore’s F&B Business Landscape

Based on Euromonitor’s estimate, there are about 28,000 foodservice outlets in Singapore as of
2018, with the majority being street stalls/kiosks. Food shops according to Singstat have grown faster
at 4.2% CAGR during the past 10 years.

We estimate mass market segment to be worth c.S$6.2b

We estimate ma ment to be wor

Source: Euromonitor, DBS Bank estimates

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Number of foodservice outlets 2018

Chaine
Independent Total
d
Cafes/Bars 1,740 625 2,365
Full-service restaurants 1,266 468 1,734
Limited-service restaurants 64 1,534 1,598
Self-service cafeterias 0 7 7
Street stalls/kiosks 20,352 2,032 22,384
Total 23,422 4,666 28,088

Food shops have outgrown food stalls at 4.2% vs 1% CAGR

Millennials-led Consumption Trends

Millennials’ consumption trend can fuel mass-market segment

According to Pew Research Center, the Millennial Generation is in the 23-38 age group today and is
defined as those born between 1981 and 1996. According to Singstat, Singapore’s Millennial
Generation population is approximately 0.9m. Based on our observation, the eating preferences of
millennials tend to evolve around healthy eating, freshness, convenience, and nutrition; with value,
environment, lifestyle and aesthetics occasionally playing a part.

Kiosks one of the fastest-growing food retail formats

Despite Singapore being a small market, new food companies are here to use Singapore as a base to
grow regionally. As the market is open to various cuisines, Singapore is ideal to put these new
concepts to trial. Successful concepts can thereafter be exported to other parts of Southeast Asia.
These new companies also contribute to the market with more dining choices.

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Stand-out new F&B brands at Jewel Chang Airport

New restaurant brands Franchisee

Shake Shack SPC Group
Burger & Lobster Directly operated
A&W Directly operated
Yun Nans Directly operated

Source: DBS Bank

Minimising operational costs including rent, depreciation and wages

Making F&B Businesses Viable

We believe the use of technology to replace staff can reap benefits over the long term. Businesses
may incur initial capex when implementing technology, but after these
fixed assets become fully depreciated, the depreciation cost savings will add to better profitability
over time. Customers utilising self-service stations in mass market segment is already becoming
common. Singapore mass market diners are already catching on the culture of returning trays to
their designated collection areas after consumption anyway. While employing technology helps to
reduce staff and depreciation costs, strong bargaining power with landlords to obtain favorable
rental rates helps to improve profitability as well. Ideally, retail landlords favour strong brands to
help bring in footfall. As such, strong F&B names can bargain for attractive rental rates, an
observation seen in our F&B stock coverage.

F&B is typically a cash business and businesses should focus on high turnover for cashflow churn.
Strategies include running promotions that will bring in footfall, adopting technology to ease choke
points at cash collection counters, and turning over tables quickly. Loyalty programs help to retain
and encourage repeat customers as well. We believe customers will return if outlets offer
convenience, value and quality. Singaporeans are savvy in terms of spending, and food options which
offer value typically works.

Captive customers ensure sustainable footfall for outlets as consumers return to support the outlets
for repeat purchases. These are customers who are “captured” by the business and find it difficult to
change or substitute patronising the outlet for another competitor. Captive customers help to build a
strong customer base. Incremental sales will come from non-captive sources such as promotions, etc.

Tenants may take a long-term view on footfall when seeking less attractive property outlets in
anticipation of future development and footfall increase in the future. Some F&B outlets such as
Jumbo take advantage of extended operating hours by opening most outlets outside of malls, as
malls usually have limited hours for outlets to operate. Other ways to maximise rent at outlets
include kiosks, like Old Chang Kee, which pays higher rent per square feet but lower absolute rents
for occupying a smaller floor area. Facing public walking areas also exposes an operator to higher
footfall and allows for longer operating hours with no mall operating hour restrictions as well.

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Key priorities for F&B companies for growth

Small startups Midsized F&B Players Regional F&B Players

Enhance shareholder
Focus Gain profitability Gain operating scale
value
Manage regional
portfolio of
Target sustainable chain F&B brands
Target operating small scale
Business model store operations, brand as JV partners
network of stores
expansion
or franchisor /
franchisee
Sustaining demand and Market share and
Growth strategy Regional growth
profitability extending local presence
Ways to find Lean operating cost structure,
Use bargaining power
operating operate at fully depreciated Consider central kitchens
for lower rental rates
efficiency premises

Average spending

Average
Comments
spending
Casual restaurant S$12-30 Per head spend
Kiosk S$3-10 Ticket size
Bakery S$3-6 Ticket size per head
Foodcourt stall S$4-15 Ticket size
Full-service restaurant S$60-80 Per head spend

Sales Productivity by Sub-sector (2016)

Source: DBS Bank estimates

Survival of the fittest

The odds appear to be stacked against foodservice companies as history suggests that only 60% of
smaller F&B businesses make it past the five-year mark, while close to 2,000 (or 25-30%) F&B
establishments close their shutters each year. As F&B operators compete for consumers’ mind- and
wallet-share, taste, value, and often experience are undoubtedly the key differentiating factors, one
must also keep a firm eye on costs.

According to Singstat, manpower, rent and COGS-related components accounted for approximately
79.1% of total F&B business costs in 2016 on average. To maximise returns, it would thus entail
optimisation of rent and labour components, and to a certain extent, material costs through better
supply chain management.

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We believe the ideal places to start where profitability is key to business owners are low cost formats
such as foodcourts and hawker centres. Several companies have grown into decent sized F&B groups
after starting from humble beginnings. Katrina Group started
to sell Peranakan food by operating a foodcourt stall and today, has branched out to operate
multiple restaurant brands (So Pho, Streats, RENNThai, Bali Thai, Muchos, Indobox etc.). Fei Siong
Group started as a fishball noodle hawker stall and today owns multiple food concepts including
Encik Tan, Malaysia Boleh!, London Duck, and EAT. Cash outlay is lower compared to starting from
standalone outlets, as capex is usually priced into the rentals over the period of tenancy. Food courts
also offer opportunities to grow when the foodcourt operator expands to new outlets. Other chains
operating within foodcourts include Pepper Lunch, a DIY fast food service concept.

Mid-sized F&B companies would have established their brands and concepts with consumers.
Beyond growing their store network, companies can grow laterally through introducing other F&B
concepts and brands. Other than organically establishing new brands, smaller F&B companies can
consider becoming a franchisee of overseas brands or representing these new brands and concepts
through a joint venture with overseas brand owners. Larger listed players continue to take up
franchises of overseas brands to operate in Singapore. Japan Foods Holdings specialises in bringing in
overseas F&B brands as a franchisee to operate in Singapore and regionally. It has multiple Japanese
brand concepts and believes in becoming a reliable operator for Japanese food

brands here in Singapore. No Signboard has recently established Little Sheep outlets
in Singapore under a franchise agreement. BreadTalk operates as a franchisee of Din Tai Fung in
Singapore. Jumbo operates Tsui Wah Hong Kong style cafés in Singapore via a JV. Winning the correct
brand representation through franchise rights or joint venture could help smaller groups springboard
and grow into larger F&B entities. In any case, F&B companies can expand their portfolio of brands
either organically or though cooperating with overseas partners.

Regional F&B groups can ultimately manage a portfolio of F&B brands regionally
across various cuisines. Companies can adopt a multi-brand, multi-city, multi-cuisine, multi market
segment approach in order to grow. As the market becomes increasingly saturated, companies can
bring in new brands or start new concepts and offer a portfolio of options for consumers. BreadTalk,
SGX’s largest F&B group by market capitalisation,
is now bringing in brands such as Taigai, Nayuki, etc. into Singapore while expanding its own brands
overseas.

Venturing Into Heartlands

New-to-market concepts favouring suburban over downtown locations appear to be on an increasing

trend. Owing to their larger population catchments and often favorable locations alongside key
transportation nodes, suburban malls are generally less susceptible to e-commerce threats, which
have contributed to their rising popularity among tenants over time.

Famous Taiwan bubble tea store, Xing Fu Tang, is one such example. After gaining much fanfare at its
temporary pop-up at Orchard, the bubble tea chain announced the opening of its first standalone
franchised store in Singapore at Century Square mall, which sits in Tampines (Outer East region).
Similarly, A&W, which has returned to Singapore after a 16-year hiatus, set up an outlet in Jewel in

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April 2019 and also announced plans to open its second outlet at Ang Mo Kio – a prominent
submarket in the North-Eastern part of Singapore.

Venturing Into Heartlands

New-to-market concepts favouring suburban over downtown locations appear to be on an increasing

trend. Owing to their larger population catchments and often favorable locations alongside key
transportation nodes, suburban malls are generally less susceptible to e-commerce threats, which
have contributed to their rising popularity among tenants over time.

Famous Taiwan bubble tea store, Xing Fu Tang, is one such example. After gaining much fanfare at its
temporary pop-up at Orchard, the bubble tea chain announced the opening of its first standalone
franchised store in Singapore at Century Square mall, which sits in Tampines (Outer East region).
Similarly, A&W, which has returned to Singapore after a 16-year hiatus, set up an outlet in Jewel in
April 2019 and also announced plans to open its second outlet at Ang Mo Kio – a prominent
submarket in the North-Eastern part of Singapore.

Business opportunity 2: MedTech

RIE2020 Portfolio

8
Business opportunity 3: RoofTop Garden
Recommendation: Good business opportunity and given that a grant has already been obtained –
it’s a viable avenue.

Government initiatives already in the area:

Landscape replacement policy by NPB (NParks, 2009) for new developments in singapore’s
downtown

Technology for urban farming

Singapore would need increasing external supplies of greens to satisfy growing population
Additionally with the restriction of imports from chicken farming in Malaysia, there needs to be more
avenue for chicken farming in Singapore as well – the solution is to build upwards

Skyrise greenery in Singapore in the form of high rise landscaped gardening

KTPH hospital urban farming has shown that urban farming has yielded multiple benefits i.e. organic
food production, biodiversity preservation and energy conservation.

Recommendations:
Difficulties and challenges related to skyrise greenery and urban farming in Singapore relate to the
following:
1. Maintenance difficulties which can be overcomed by adopting a low maintenance growing
technique on selectin of hardy crops
2. Lobbying for intensification of

30x30 Express”

The global green roof market size was valued at USD 1.1 billion in 2019 and is expected to grow at
a compound annual growth rate (CAGR) of 17% from 2020 to 2027. A Green roof, also known as a
living or vegetated roof, incorporates multiple layers, such as waterproofing membrane and
protective layer, on the traditional roof. Rising awareness about these systems across various

9
application areas is driving the growth of this market. Moreover, tax benefits offered to private
companies by governments across the globe for the adoption of green roofing materials are
expected to bolster the market growth over the forecast period. In November 2019, the New York
Department of Buildings announced that all new buildings and existing buildings in the city
undergoing major roof renovations will have solar photovoltaic systems, living roof systems, or a
combination of both. The implementation of the new regulation is projected to result in the
expansion of the market over the forecast period.

U.S. green roof market size

Expansion of residential construction sector on account of the growing population coupled with
the improved standard of living is projected to result in increased product adoption, thereby
driving the market over the forecast period. In addition, rapid industrialization in the emerging
regions, such as Asia Pacific, is projected to stimulate the product demand to minimize air
pollution.

The industry participants follow direct product distribution channels along with third-party
maintenance service providers, thereby maintaining operational efficiency and cost-effectiveness
of the business. In addition, market players are engaged in providing training sessions related to
installation and maintenance of living roofs to the architects and contract managers.

Lack of proper designing layout and guidelines for the installation of living roofs is expected to
pose a threat to the market growth. In addition, unfavorable climatic conditions like extreme heat
in regions, such as the Middle East, are likely to limit industry growth. Moreover, low maintenance
facilities are anticipated to further pose a challenging environment for market growth.

Type Insights

Extensive type is expected to account for more than half of the overall market share by 2027. Easy
installation of extensive green roof systems along with rising environmental concerns is expected
to be the key factor driving the growth of this segment. The planting medium for these systems
ranges from 1.6 to 6.0 inches deep. An extensive green roof is majorly used in residential buildings,
sheds, and garages. The product has a simple installation process and is often added to the existing
roofs. Major plants used are drought-tolerant sedums and grasses as they require little water and
are shallow-rooted.

The intensive type is also one of the most popular categories that recorded a demand valued at
USD 178.9 million in 2019 and is likely to expand further at the fastest CAGR of 17.5% from 2020 to
2027. Evolving trend of urban roof farms, vegetable farms, and rooftop farms across the globe is
projected to drive the demand for intensive living roofs. An intensive green roof system is
characterized by a variety of vegetation that ranges from herbs to small trees. This vegetation
requires professional maintenance coupled with an advanced living roof irrigation system. These
systems are used in applications ranging from personal home gardens to full-scale public parks.

In 2019, commercial applications accounted for the largest green roofs market share and is
anticipated to grow at the fastest CAGR of 17.6% over the forecast period. Living roof helps in

10
mitigating the negative effects of the urban hardscape by reintroducing a natural landscape
without making major changes to the city’s infrastructure.

Commercial sector, which includes shopping malls & complexes, schools, offices, and government
buildings, is one of the major application segments of living roofs. Intensive green roof systems are
majorly used in commercial sector.

Global green roof market share

To learn more about this report, request a free sample copy

Residential application segment is expected to register a notable CAGR from 2020 to 2027
supplemented by rising demand for residential buildings on account of rising global population.
Green roofing is beneficial for homeowners in improving the aesthetic features and air quality.
Moreover, these systems promote the usage of recycled materials as the growing medium.

The use of living roof in residential sector helps in retaining and modifying the temperature of
rainwater and acts as a natural filter. The residential application segment is further expected to
witness significant growth on account of the increasing awareness among people about the need
for environmental protection.

Regional Insights

Europeled the global market in 2019 and is likely to continue its dominance over the projected
period. This growth is attributed to the research and innovation policies by the European
Commission for implementing nature-based solutions. Germany is witnessing a notable product
demand since the government in the country is continuously designing and encouraging living roof
policies.

For instance, the funding program for greening measures implemented in Stuttgart city of
Germany has supported the installation of green walls and roofs, thereby positively influencing the
overall market growth.

The market in Asia Pacific is also expected to witness a notable growth over the forecast period on
account of rising number of construction activities in countries, such as China, Japan, and India. In
addition, rapid urbanization in the region is anticipated to benefit the market growth.

Skyrise Greenery Program launched in the region, that encourages the installation of living roofs
on residential and commercial buildings, is projected to promote the market growth over the
forecast period. In addition, cities such as Tokyo and Hong Kong are developing living roof policies
to tackle the growing environmental issues.

Key Companies & Market Share Insights

Top companies are continuously improving the design and performance characteristics of the
green roofs to maintain a strong foothold in the market. Companies are also increasingly investing

11
 in research & development to introduce low-maintenance living roof systems thereby minimizing
the overall cost. In addition, the companies are engaged in strengthening their market positions by
adding new and advanced product offerings to the end users. Some of the prominent players in
the green roof market include:

Optigreen International AG

Green Roof Blocks

Axter Ltd.

Sempergreen

Bauder Ltd.

ZinCo GmbH
The global green roof market size was estimated at USD 1.1 billion in 2019 ans is expected to reach
USD 1.4 billion in 2020.
By 2050, the world will need to produce up to 70 percent more food to feed about two billion
more people, according to projections by the United Nations and scientists[1]. While improving
farming practices and minimising food waste are essential to meeting this challenge, growing more
food in cities could also mean the difference between success and failure

Business opportunity 4: Orchestra, opera, acrobatics, musicals including kids live shows.
Recommendation: Not a good business opportunity at present (niche market with low prospect)

Overall Performance

 The Media industry revenue increased by 12.7% year-on-year from 2017 to 2018 to reach
S$7,803.3 million.
 The revenue growth in 2018 was mainly attributable to an increase in Games segment
overseas revenue.
 In fact, the Games segment was the largest contributor to the Media industry revenue, with a
share of 35.5%. This is followed by the Broadcasting segment (26.5%), the Film & Video
segment (20.8%) and the Publishing segment (17.3%).

Overseas Market and Destinations

 Revenue derived from outside Singapore (“overseas revenue”) accounted for 62.7% of the
Media industry revenue, increasing from S$3,212.3 million in 2017 to reach S$4,892.2 million
in 2018.

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  In 2018, revenue from Business-to-business1 (B2B) sources formed the majority (73.9%,
S$3,615.7 million) of the overseas revenue, while Business- to-consumer2 (B2C) sources
formed the remaining 26.1% (S$1,276.5 million).
 The Games segment was the largest contributor to overseas Media revenue in 2018 with a
share of 50.5%, while the Publishing segment was the smallest contributor with a share of
13.8%.
 Southeast Asia, which includes countries like Indonesia, Malaysia, Philippines, Thailand, etc.,
was the top region with regard to overseas Media revenue in 2018, accounting for 31.8% of
overseas revenue.

Local Market

 Revenue derived within Singapore (“local revenue”) accounted for 37.3% (S$2,911.1
million) of the Media industry revenue in 2018. This was a decline from S$3,713.9
million in 2017.
 In 2018, B2B revenue formed the majority (78.6%) of local revenue, while B2C
revenue sources formed the remaining 21.4%.
 In the local market, the Broadcasting segment was the largest contributor with a share
of 35.0%, while the Games segment was the smallest contributor with a share of
10.2%.
 Drop in Media local revenue mainly due to decline in Games B2C revenue.
 Local Media revenue was S$2,911.1 million in 2018, a decrease from S$3,713.9 million in 2017 (Chart
10).

13
14
  The movies & entertainment market consists of both producers and distributors of entertainment formats,
such as movies and music.

 The Singaporean movies & entertainment market had total revenues of $47.9m in 2020, representing a
compound annual rate of change (CARC) of -25.8% between 2016 and 2020.

 The music & video segment accounted for the largest proportion of the market in 2020, with total revenues
of $38.6m, equivalent to 80.7% of the market's overall value.

 The COVID-19 pandemic had a hugely detrimental impact on the movies & entertainment market
throughout 2020. Movie theaters in many countries were forced to close and the leading movie production

15
 companies suspended the release of their box office data. This is reflected in the huge decline see in this
market in 2020.

SCOPE

 Save time carrying out entry-level research by identifying the size, growth, major segments, and leading
players in the movies & entertainment market in Singapore

 Use the Five Forces analysis to determine the competitive intensity and therefore attractiveness of the
movies & entertainment market in Singapore

 Leading company profiles reveal details of key movies & entertainment market players’ global operations
and financial performance

 Add weight to presentations and pitches by understanding the future growth prospects of the Singapore
movies & entertainment market with five year forecasts

REASONS TO BUY

 What was the size of the Singapore movies & entertainment market by value in 2020?

 What will be the size of the Singapore movies & entertainment market in 2025?

 What factors are affecting the strength of competition in the Singapore movies & entertainment market?

 How has the market performed over the last five years?

 What are the main segments that make up Singapore's movies & entertainment market?

 There was a shift

of revenue type towards B2B revenue in 2018 (Table 6). This shift was mainly due to a drop in Games
B2C revenue from S$841.1 million in 2017 to S$112.3 million in 2018 (Chart 12).

16
 

In the early stages, from the 1960s through to the 1990s, we saw the development of a
Singapore voice in theatre with stalwarts and key organisations at the forefront of it. Today,
our theatre scene has a significant base of professional companies and established artists to
boast of, including a broad range of companies that explore different types of works across
languages and styles: Cake Theatrical Productions, Checkpoint Theatre, Drama Box, Nine
Years Theatre, Pangdemonium, Paper Monkey, Singapore Repertory Theatre, Teater
Ekamatra, The Finger Players, The Necessary Stage, The Theatre Practice, T:>Works, Toy
Factory, Wild Rice, Young People’s Performing Arts Ensemble.

Other organisations such as the Singapore Drama Educators Association and Centre 42 also
provide support and professional development for practitioners to deepen their creative
process and enhance their practice in various aspects. Singapore’s theatre calendar is
packed throughout the year, with bursts of activities and commissions of theatre groups at
festivals such as the Singapore International Festival of Arts. With the performing art forms
becoming increasingly multi-disciplinary, audiences are also exposed to a myriad of exciting
works that continue to explore pertinent themes that are close to heart.

A Culturally Rich Landscape

The traditional arts scene in Singapore is vibrant, with a healthy base of artists and
organisations including the national company, Singapore Chinese Orchestra. Over the years,
our traditional arts practitioners have built upon the foundations of our heritage to reflect
upon the unique characteristics and collective stories of the various communities in
Singapore. While retaining the longstanding traditions, artists have also tapped on the
potential to challenge and adapt the traditional art forms to present relevant works that
audiences can resonate with, especially in exploring multi-cultural themes in a common
language through the arts.

As the arts evolve and become increasingly multi-disciplinary, an increasing number of

traditional arts practitioners have also innovated and rejuvenated their craft, generating new
interest in the art forms as well as paving the way for collaborations with contemporary art
forms.

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Industry and Capability Development
Over the years, the National Arts Council (NAC) has supported key organisations such
as Chinese Theatre Circle, Dance Ensemble Singapore, Ding Yi Music Company, Nam Hwa
Opera, SAtheCollective, Singapore Chinese Dance Theatre, Siong Leng Musical
Association, The TENG Ensemble, Traditional Arts Centre, Young People’s Performing Arts
Ensemble, Era Dance Theatre, Nadi Singapura, Apsaras Arts and Bhaskar’s Arts Academy,
as well as other key players of the traditional arts scene, to enable them to professionalise
their operations and build capabilities. Our support focuses on enhancing artistic skills for
individual artists, upgrading of administrative and management capability of these groups, as
well as improving research and archival efforts to document the traditional arts for future arts
practitioners and audiences.

To promote traditional arts to a wider audience, the Stamford Arts Centre houses
professional arts companies, provides facilities-for-hire and supports artist-in-residency
programmes to support content creation and artistic collaborations. Cultural institutions such
as the Esplanade also present programmes and festivals to increase the visibility of
traditional arts in addition to NAC’s Traditional Arts Taster programmes that reaches out to
young audiences. Through the years, national music competitions such as the Singapore
Chinese Music Competition and National Indian Music Competition have also served to raise
the artistic standards of traditional music and create opportunities to develop performing
skills.
Live concerts, cinemas and the print industry are the hardest hit by the pandemic.

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Singapore’s E&M revenue is expected to decline by 5% in 2020 compared to the previous
year, at approximately US$274m, according to PwC’s Global Entertainment & Media
Outlook 2020-2024.

The pandemic brought not just the island but even the global E&M industry’s growth to a
shuddering halt, noted PwC. Overall, 2020 will see the sharpest fall in global E&M
revenue in the 21-year history of PwC’s research, with a decline of 5.6% compared to 2019
—or more than US$120b in absolute terms.

"The year 2020 presents a paradox for many Singapore media businesses. There is more
consumption of media than ever before, with Singaporeans stuck at home during the circuit
breaker. Yet at the same time, there has been a sharp contraction in revenue and
profitability for many industry players,” said Oliver Wilkinson, Entertainment and Media
Leader, PwC Singapore.

On the upside, E&M companies can look forward to a better new year, with Singapore’s
E&M spending expected to jump 5.3% in 2021.

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Local E&M spending is also expected to bounce back to US$5.5m or equal that of 2019
levels (US$5.5mn in 2019) by next year.

PwC’s five year forecast also remains optimistic, with overall revenue growth expected to
come at a 2.8% compound annual growth rate (CAGR) for 2019-2024.

Overall, The COVID-19 pandemic—and the circuit breaker measures it caused—has

pushed for an entertainment and media (E&M) world that is more remote, more virtual
more streamlined, and more home-centric at least in the near-term, noted PwC.

Uneven pains
PwC’s study noted that the current pain in E&M is not evenly shared around the industry.
E&M involving crowds such as live music, cinema and trade shows are projected to suffer
the most.

Spending on local cinemas is expected to fall by 59% in 2020. The sub-sector will suffer
from a slow recovery, according to PwC, with cinema spending expected to reach on
US$200m in 2024—lower than the US$205m in 2019.

At the same time, the long-running transition in newspapers from print to digital has been
fast-forwarded several years, cutting into papers’ print revenues, added PwC. Overall
revenues in Singapore is projected to slump by 13% for the year, with consumer magazines
suffering the most.

On the other hand, with people staying at home, video and streaming services emerge to be
the biggest winners. Over-the-top (OTT) video has seen local revenue surge by 32% in
2020 YTD, higher than the global average of 26%. And it is forecasted to keep rising
strongly in the coming years, doubling in size from US$234m in 2019 to US$477m in
2024.

The video games segment has also grown quickly in Singapore, and is projected to expand
by 9% this year. It will remain one of the fastest growing segments going forward to 2024,
says PwC.

Out-of-home advertising is expected to decline by 24% in 2020 but will recover in 2022.

"What is consistent with the outlook from prior years is the wide variance of performance
between different segments, particularly given the acceleration of digital media adoption at
the expense of traditional. It is in this sense that the pandemic has brought the future
forward,” noted Wilkinson.

“That said, most affected of all have been the live entertainment and cinema segments.
Before this crisis, experiences were amongst the better performing parts of the industry, but
they have taken a large hit due to the safe distancing and travel restrictions. We still see a

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good future for such events and live experiences, but it may be some years before they can
adapt to this new normal."

Summary

Movies & Entertainment in Singapore industry profile provides top-line qualitative and
quantitative summary information including: market size (value 2015-19, and forecast to
2024). The profile also contains descriptions of the leading players including key financial
metrics and analysis of competitive pressures within the market.

Key Highlights

 The movies & entertainment market consists of both producers and distributors of
entertainment formats, such as movies and music.
 The Singaporean movies & entertainment market had total revenues of $170.4m in
2019, representing a compound annual rate of change (CARC) of -5.7% between
2015 and 2019.
 The box office segment was the market's most lucrative in 2019, with total
revenues of $128.6m, equivalent to 75.5% of the market's overall value.
 Censorship in Singapore has been put in place to avoid society upset through
political, racial and religious issues. This has impacted both the box office and
music & video, with some content being banned.

Scope

 Save time carrying out entry-level research by identifying the size, growth, major
segments, and leading players in the movies & entertainment market in Singapore
 Use the Five Forces analysis to determine the competitive intensity and therefore
attractiveness of the movies & entertainment market in Singapore
 Leading company profiles reveal details of key movies & entertainment market
players’ global operations and financial performance
 Add weight to presentations and pitches by understanding the future growth
prospects of the Singapore movies & entertainment market with five year forecasts

Reasons to Buy

 What was the size of the Singapore movies & entertainment market by value in
2019?
 What will be the size of the Singapore movies & entertainment market in 2024?
 What factors are affecting the strength of competition in the Singapore movies &
entertainment market?
 How has the market performed over the last five years?
 What are the main segments that make up Singapore's movies & entertainment
market?

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