NOVEMBERASIA BUSINESS OUTLOOK9NEWSROOMAPAC'S AUTOMOTIVE AFTERMARKET GEARS UP FOR 3.7 PERCENT GROWTH SURGE BY 2028In December 2024, approximately 2.9 million Singaporeans aged 21 and above will receive a one-off cash payout as part of the government's Assurance Package. In addition to the cash payouts, 1.4 million Singaporeans born between 1974 and 2003 will receive a one-time MediSave top-up ranging from S$300 to S$500. For those born 1973 or earlier, the Majulah Package will provide a MediSave bonus ranging from S$1,250 to S$2,000 to help with healthcare costs. These top-ups are designed to help offset the expected increases in MediShield Life premiums and support the upcoming enhancements to the healthcare system.The payout, ranging from S$200 to S$600, is aimed at helping to alleviate the financial pressures faced by Singaporean households, particularly benefiting lower- and middle-income families. This package has been further enhanced by an additional S$1.9 billion in the 2024 Budget.Furthermore, as part of the Majulah Package, around 800,000 eligible Singaporeans born in 1973 or earlier will receive a Retirement Savings Bonus ranging from S$1,000 to S$1,500 in their Central Provident Fund (CPF) accounts, depending on their retirement savings balance.Eligible recipients will automatically receive these payments based on their chosen payment method, with notifications sent via SMS or letters for those without Singpass-registered mobile numbers. The market for automotive aftermarket wear and tear in Asia Pacific is projected to grow at a compound annual rate of 3.7 percent between 2023 and 2028, as per report from Globaldata. It is expected that this industry, encompassing car parts for repairs, mechanical parts, components subject to wear and tear, and tires, will grow from 1.4 billion units in 2023 to 1.68 billion units by 2028.Madhuchhanda Palit, an automotive analyst at GlobalData, pointed out that market expansion will be impacted by various factors such as the quantity of vehicles on the road, frequency of accidents, driving habits, and population characteristics.Countries like India and Thailand, which heavily depend on personal vehicles, are forecasted to experience a substantial increase in demand for aftermarket products and services. Furthermore, variables such as the state of roads, traffic regulations, and the implementation of advanced driver assistance systems could affect the need for crash repair services and other aftermarket parts.The Automotive Industry is forecasted to increase to USD 6950.55 billion by 2032 from USD 4075.65 Billion in 2024, showing a CAGR of 6.9 percent from 2024 to 2032. The Automotive Industry market was worth $3812.5 billion in 2023. The automotive market is experiencing growth due to a rise in demand for luxury passenger vehicles, as well as increased urbanization and infrastructure spending in the economy. SINGAPOREAN CITIZENS TO RECEIVE ONE-TIME PAYOUT TO PAY HEALTHCARE PREMIUMS
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