The luxury sector is facing a global slowdown, with Singapore impacted by the slow return of Chinese tourists. While high-spending visitors are back in some markets, overall recovery in luxury spending is uneven. Singapore’s luxury shopping remains at 74% of its 2019 peak and isn’t expected to fully recover until 2025. Despite an 11% growth in 2023, a major money laundering case involving Chinese nationals could dampen luxury demand as high-net-worth individuals avoid attention. This case may lead to stricter regulations on luxury spending. However, the impact is expected to be short-term, with domestic spending supporting recovery.