Singapore announces four e-commerce development strategies to drive the continued boom in e-commerce

It is understood that online sales in Singapore as a percentage of total retail sales has increased from 5.8% in January 2020 to 14.3% in November.

Recently, foreign media reported that Singapore's Trade Minister has announced the latest plan to transform Singapore into a regional and global e-commerce hub.

The plan includes measures to strengthen digital infrastructure , enhance supply chain capabilities, and expand digitalization of small and medium-sized enterprises .

Strengthening digital infrastructure

In this initiative, Singapore has focused on digital connectivity , data analytics , payment systems and new business innovation.

As e-commerce is the backbone of the country's digital economy, the development of 5G infrastructure is also crucial. It is reported that Singapore will cover 5G within two years, a move that will significantly improve the ability to handle large e-commerce orders.

In addition, the Singapore government also encourages local businesses to adopt digital solutions such as electronic payments and electronic invoicing.

Improving digital security

Singapore is currently enhancing its cybersecurity capabilities to protect businesses and ensure the security of cross-border data flows.

To strengthen this aspect, the country adopted the Digital Economy Partnership Agreement ( DEPA) with New Zealand and Chile.

Through the agreement, Singapore aims to develop an international framework to support businesses engaged in cross-border digital trade and e-commerce.

Businesses can also benefit from more paperless trade, reducing the time it takes for goods to clear customs and documents to cross borders. This will also encourage the use of electronic payment solutions as payment systems become more operable.

Improving supply chain capabilities

The growth of the e-commerce industry provides more opportunities for Singapore ’s logistics sector to better integrate with the global supply chain.

Singapore ranked seventh in the World Bank's Logistics Performance Index in 2018 and 14th in the freight volume category in 2019, ahead of London , Beijing , Chicago and Los Angeles.

However, the e-commerce industry will also need the necessary data infrastructure to ensure that data is shared securely between these supply chains.

Encourage digitalization of enterprises

The Singapore Government will step up efforts to digitise local SMEs and maximise their potential from the digital economy.

In 2020, ESG and IMDA partnered with Amazon , Lazada , Qoo10 and Shopee to launch the E-Commerce Booster Package, an initiative designed to help retail businesses affected by the pandemic shift to online solutions , with more than 2,200 businesses currently joining the program.

policy

Cross-border e-commerce market

Southeast Asia