Singapore Edition: How is the downturn affecting the rich?

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This week, Ishika Mookerjee watches the economic downturn hit even the affluent; Reinie Booysen and David Scanlan queue up to get their holiday money in Singapore's currency corridor; and Saira Asher tries a super-salty pizza.

Biting the Rich

The sudden closure of 1880, one of Singapore's archetypal private-member clubs for the rich, has been chalked up to bad maneuvers from the management, including an untimely expansion into Hong Kong and Bali. Some former members have taken to social media to vent their frustration.

But lurking in founder Marc Nicholson's apologetic message to customers was a line that also reflects a broader economic reality — both the level of spending and frequency of visits by clients was "trending down," he said.

1880 might yet see a revival, but the gathering political and economic clouds are gradually darkening the outlook even for the well off.

With businesses facing high rentals and rising costs, the uncertainties of a global trade war, a revived cold war and a rapidly escalating hot war in the Middle East are fanning worries for an economy that was already preparing for a technical recession. Singapore itself may currently only face Donald Trump's "minimum" 10% reciprocal tariff rate, but 10% is more than the average profit margin for most companies, and the island is closely integrated with countries facing much higher tariff barriers.

This week's gloomy data at home included a surprise decline in May exports, followed by a steep drop in the nation's forecast economic growth. In the central bank's quarterly survey, economists and analysts predicted GDP will increase by 1.7% in 2025, compared with 2.6% in the March poll.

1880's Hong Kong club closed down at the end of May. Source: 1880 Social

Meanwhile, new private home sales in May fell to a five-month low.

"Even with the delayed implementation of stiff US reciprocal tariffs and a US-China trade truce, we still expect a material slowdown in the city-state's growth this year," wrote Tamara Mast Henderson, Asean economist for Bloomberg Economics. "Global demand will become satiated, spending power depleted, and heavier US tariffs will sink in."

For residents, this means their purchasing power could get further eroded by inflation, and that more of their favorite cafes and restaurants could close. Wala Wala Café Bar, one of the last holdouts from the 90s in Holland Village, is reportedly going to exit its lease by the end of the year.

Anthony Siau, founder of Kairos Capital, put it succinctly in a LinkedIn post: "Singapore's rising cost of living and a slowing economy are making even the affluent more discerning." —Ishika Mookerjee

Weekend Catch-Up

A selection of the best of Bloomberg storytelling, from podcasts and video to explainers and feature stories.

Read:

Japan is cracking down on clubs where men flirt for money.
JD.com billionaire's viral stunt reignites China's food-delivery feud.

Watch:

China's Gen Z is turning to Tarot readings, bazi sessions, and crystal healing.
What happens if Iran tries to close the Strait of Hormuz?

Can the UK afford to defend itself? Watch the Bloomberg Originals documentary.

Listen:

China is building a powerful army of hackers.
Have China's emissions finally peaked?

A Good Rate

For a quarter of a century I've been enjoying the ease of living in Singapore, and especially the convenience of having vendors of a particular type clustered side by side, competing like crazy until prices are pared to the bone. It's in this trading hub's DNA to seek a better deal.

You want techie stuff? Sim Lim Square, where prices for every widget are posted on store-front boards. Cheap eats: Your local food court, with hawkers offering a wide array of dishes. Bathroom fittings? Balestier Road. Hardware stores? Jalan Besar. In King George's Avenue you can get a piece of canvas cloth cut and sewn into any configuration you desire.

Head down to Alexandra Road and you can buy pretty much any model of automobile. And when you back it into a car-park pillar, there are two dozen body shops a block away in Alexandra Village to sort that out.

But the industry that perhaps most fascinates me is money changing. How are these people surviving in a world where everything is going digital? To find out, I headed down with my colleague David Scanlan to Singapore's money-changing HQ: The Arcade in Raffles Place.

Singapore's Banking Hub Has a Corner Where Cash Is Still King

The building is among a dwindling number of endangered classics, run down but holding out valiantly while all around gets redeveloped into shining skyscrapers. It's a mixture of local eateries, a stationery shop, hair salons, a busy lottery outlet — and about 30 currency stalls.

Take a trip down money-changing row.

At lunch time, it's a hive of activity. Most customers exchange relatively modest sums of cash for overseas trips, but you'll see a few walking from stall to stall with wheeled suitcases full of notes, looking for the best rate.

The glue that keeps this industry going is the belief that you're getting a better deal. Competitive rates bring customers back, holiday after holiday. Check your cash if you like, but the counting machines won't get it wrong and will even sometimes detect counterfeit notes, we discovered.

But there's a human element here too. Your relationship with your money changer — like your dentist or hairdresser — is more than just a service. We see each other every few weeks or months, exchange pleasantries and then complete a transaction to keep us going until the next time. There's no app for that. —Reinie Booysen with David Scanlan

The Review: Pizza Studio Tamaki

From the best spots for a business lunch to drinks with the boss, we sample the city's eateries, bars and new experiences.

Taking over the spot that previously housed the Tippling Club — and its decor — Pizza Studio Tamaki is the newest entrant on the Singapore pizza scene. Chef Tsubasa Tamaki received accolades with his three locations in Japan and is now going international with his signature dough and Neapolitan style, opening outlets in Bangkok and Singapore. This is not your average pizza parlor.

The vibe. Industrial-casual — think wooden tables and exposed light fixtures. It's definitely not stiff.

PST's wood-fired Stefano Ferrara Forni oven. Source: Brand Cellar

Can you conduct a meeting here? It's quite a pared-down set-up to take a client or important guest. But it would be great for a team lunch.

What about a romantic dinner? It wouldn't be my first choice. The tables are quite close together and there isn't much of a romantic vibe. I saw more groups there when I visited.

What we'd order again. The broccoli starter and meatballs on tomato sauce were simple and fresh. Of the pizzas, the signature Pizza Tamaki was most memorable and distinct. The pie is dropped on an Okinawan salted stone platter once it comes out of the wood-fired oven. All the pizzas also have a signature charred crust (you can ask for less salt and char if you are not a fan). We were instructed to pop the tomatoes before digging in and the balance of flavors with the smoked mozarella really did elevate the experience.

Tamaki pizza. Source: Brand Cellar

The Nduja pizza with a white sauce was our other choice, though my dining companion found it a bit too salty when combined with the salt laid out on the platter. The light, chewy dough is really the star — the Canadian and American wheat flour is milled in Japan and fermented for 30 hours.

Need to know. PST, at 38 Tanjong Pagar Road, is open for lunch and dinner every day from 12–3 p.m. and 5–11 p.m. Expect to pay around S$60++ for a pizza and a couple of starters. —Saira Asher

Have a place you'd like us to review or feedback to share? Get in touch at sgedition@bloomberg.net.

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