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At the same time, 49,305 new businesses were registered through July 31, with the information and communications sector recording the strongest increase in new openings, according to data from the Accounting and Corporate Regulatory Authority.

The rise came despite construction being one of the economy’s strongest-performing sectors. The Building and Construction Authority expects as much as $53 billion in public and private contracts to be awarded in 2026, according to Channel News Asia.

A total of 2,127 construction businesses shut down in the first seven months of 2026, an increase of almost 47% from the same period in 2025. Meanwhile, 2,277 firms entered the sector.

An interior designer, who requested anonymity, told The Straits Times that she knows of several construction firms that have gone bankrupt, while others have closed because of cost pressures.

“Some owners have decided to retire,” said the designer, citing factors including higher labor and raw material costs as conflicts such as the Iran war push up energy prices.

Sim Chee Siong, a partner at Rajah & Tann law firm, said construction companies, particularly smaller subcontractors and building contractors, have faced significant financial strain.

He said: “Many contractors that secured projects on fixed-price contracts in the past few years are now finding those margins eroded or entirely consumed.

Sim added that a cautious lending environment has accelerated the closure of construction companies that were already operating on thin margins.

The food and beverage sector was the next hardest hit, with closures rising 25.1% to 2,101. At the same time, 2,594 new F&B businesses were registered.

About 7,300 information and communications companies were established, a 26.7% increase.

Singapore ranked first in Asia and eighth globally in GDP per capita last year at $99,365, according to the International Monetary Fund.