UFC Gym Suddenly Closes At CityLink: 4 Things You Should Know About More Businesses Shutting Down In 2023

In recent weeks, there have been a number of news reports on high-profile businesses shutting down. One that caught our eye was the UFC Gym in CityLink. It’s associated to a large sporting brand, and located in a prime area that many individuals would have walked past – CityLink Mall.

Here are 4 things we should know about businesses closing down in 2023.

#1 There Are Businesses Shutting Down All The Time

While sudden business closures will inevitably catch customers and even bystanders by surprise, it’s not really a rare occurrence. Each month, thousands of business entities close down and thousands more also open up. 

In the first 4 months of 2023, over 16,000 businesses have ceased operations. Besides UFC Gym, others have also made the headlines. Recently, child enrichment chain Genius League closed their three branches suddenly. At the start of the year, food waste start-up UglyFood shut down after seven years. In March, F&B restaurant Mad for Garlic announced that they would close down after 13 years operating at Suntec City.

We are only in the first half of 2023, and should be ready for more news on business closures throughout the year. As a reference point, nearly 50,000 businesses closed down in 2022.

Read Also: Guide To Closing Down A Company In Singapore: Striking Off Company & Winding Up

#2 Trend Shows Potential Rise In Business Cessation In 2023

From January to April 2023, 16,430 business entities shut down in Singapore. In the same time period in 2022, there were 15,998 businesses that ceased. This shows that more businesses have shut in the first 4 months of 2023 compared to 2022.

Specifically in April 2023, the latest statistic announced, there were 4,724 businesses that shut down. This represents the highest number of businesses that shut down in a month since September 2020 – when many businesses were grappling with COVID-19.

#3 More Business Entities Today Compared To Pre-COVID-19

There are a total of 576,495 business entities in Singapore, as of April 2023. And this number is on an upward trajectory as more businesses are formed each year.

With more businesses in operation, we should naturally expect to see more businesses shut down, if the rate of business closures remains the same.

Read Also: When Do You Know It’s Time To Shut Down Your Unprofitable Business?

#4 Replacement Rate Of Businesses In Each Sector Is Mostly Higher

In general, the number of businesses created in each sector tend to be higher than the number of businesses that were closed in the sector. This could simply point to less relevant business entities making way for newer businesses, modelled for the new normal that we live in.

Only two sectors saw more businesses closing down than opening up: Transportation & Storage and Accommodation sectors. 

We can also see that the most number of business closures and formations happen within the i) Wholesale Trade, ii) Retail Trade, iii) F&B, iv) Information & Communications, v) Finance & Insurance, vi) Professional Services, Education, Health & Social Services and vii) Arts, Entertainment, Recreation & Other Services.

Moreover, the Information & Communication, Finance & Insurance and Professional Services saw nearly 1,500 more businesses forming than shut down. These are the sectors that are most vibrant.

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