Singapore's e-commerce is expected to reach US$7.1 billion in 2022, with government support to promote development

In recent years, Southeast Asia is becoming a new market for cross-border e-commerce platforms, and Singapore's development is expected. Many industry insiders regard Singapore as the preferred entry point for serving local and regional markets. The reason is that Singapore provides highly reliable payment networks and logistics services. The World Bank has also listed Singapore as the largest logistics center in Asia for ten consecutive years.

The growth of e-commerce has been driven by the increasing penetration of the internet and the number of consumers who are familiar with the purchasing process. In 2020, Singapore's e-commerce market was valued at US$2.15 billion, accounting for 35% of the country's e-commerce market. The e-commerce market is expected to reach US$7.157 billion in revenue and 4.1 million users by 2022. Singapore's booming e-commerce is a testament to the country's equally developed retail industry.

Deloitte's Asia-Pacific Digital Trade Report highlights that Singapore has become one of Asia's leading e-commerce destinations. In addition to its strategic location, advanced digital economy ecosystem and highly developed Internet market, the headquarters of many ASEAN unicorn companies are located in Singapore, which has also promoted the development of the local e-commerce industry.

Currently, Singapore has about 15 unicorn companies, among which Grab, Carousell, Lazada, Ninja Van, Shopee and other well-known companies have valuations of more than US$1 billion. The good results achieved by companies stationed in Singapore have established good confidence for merchants who are preparing to settle in Singapore or have already settled in Singapore.

In addition, the support policies of the local government in Singapore are also one of the reasons for the rapid development of the e-commerce market.

Under the influence of the epidemic, the Singapore government has also taken positive measures to "cheer up" local small and medium-sized enterprises in the form of subsidies . Eligible retailers can receive subsidies of up to 80%.

However, the shortage of digital talent skills is one of the issues hindering the development of Singapore's e-commerce market. The market currently needs local talents specializing in e-commerce and digital marketing. According to Salesforce 's Global Digital Skills Index, 64% of Singaporean workers are not fully prepared for digital skills in the workplace, and only 29% are actively upgrading their skills to adapt to the ever-evolving market and technology.

The move comes after a report commissioned by Amazon Web Services ( AWS) said Singapore will need about 1.2 million additional digital workers by 2025 to remain competitive.

According to the analysis report, the Singaporean e-commerce market is developing rapidly, but there is a lack of professional talents in this field. Therefore, when developing the local market, cross-border sellers can also focus on improving their own skills and professional knowledge, and keep abreast of changes in the local market and policies to seize all development opportunities.

Singapore

E-commerce