Revenue in the Singapore e-commerce market is expected to earn US$7.29bn in 2022, according to Statista. And the great potential is not the sole reason.
Below you’ll find more about typical reasons why this city-state is a match made in heaven to start and grow an online business. With a pro-business environment, supportive government policies, and a thriving digital ecosystem, Singapore offers everything that businesses need to succeed in the digital age.
Prime location and environment that can boost your e-commerce sale
Singapore’s central location in Asia makes it a perfect base to target the growing markets in the region. Statista reported that e-commerce projected market volume in the Lion City is about US$1,412bn in 2022, and most revenues come from China.
In addition, the city-state has developed infrastructure and is home to many logistics and transportation companies that can support your Singapore-based e-commerce business.
Singapore is also a leading international transportation hub that links to 600 ports in more than 100 countries. There are various fulfillment centers in the city-state, namely Allsome, WhiteBox, uParcel, opening great doors of opportunity for business players to reach full service to end consumers. Major global logistics agencies – FedEx, UPS, and DHL, are also situated in Singapore.
Singapore is ranked as one of the easiest places to do business in the world. Singapore ranks highly in the World Bank’s “Ease of Doing Business” index and is also ranked the world’s most competitive economy by the IMD World Competitiveness Yearbook. This favorable business environment makes it easier to set up and run an e-commerce business in Singapore.
Last but not least, if you set up a Singapore e-commerce business, you may be eligible to enjoy the Singapore government’s startup tax exemption scheme – that is a 75% tax exemption on the first $100K of chargeable income and a 50% exemption on the next $100K.
Singapore government and supportive e-commerce business incentives
Singapore has put in place many policies and initiatives to promote the development of the e-commerce industry. The city provides funding and grants to help businesses get started and grow. Also, it works closely with industry players to provide a productive environment for online businesses to thrive.
Singapore e-commerce booster package is one of the worth-mentioning policies. The package is to help brick-and-mortar retailer retailers to get on board and start selling online on e-commerce platforms. Eligible retailers may receive one-time support for 90% of eligible costs (up to S$9,000) for up to 6 months.
You also should not miss out on these: Singapore Startup schemes and SMEs Go Digital are government initiatives to help entrepreneurs in Singapore to start and grow their businesses easily. The schemes provide a range of support, including mentorship, funding, and resources.
Singapore as a digital-friendly nation
In December 2020, Singapore had the third-highest internet usage level in Southeast Asia, according to Statista. There are over 4.5 million individuals who use the internet in Singapore. Singaporeans are also early adopters of new technology, making it easier for businesses to reach their target market.
The government is also investing in initiatives to further develop the digital landscape in Singapore, making it an even more attractive location for e-commerce businesses. Launching Digital Economy Framework was a typical example that has shown the government’s vision to become a leading digital economy.
Singapore has a strong telecommunications infrastructure and top-notch digital connectivity. Singapore has one of the fastest Internet connections in the world, tops among global rankings in terms of median fixed broadband speeds. The Lion City won the fastest home internet speeds at 239 Mbps on average.
The good news is that 5G is planned to be rolled out nationally in Singapore by 2025. And if the city makes it successful, Singapore is going to be one of the first countries in the world to do so.
The COVID-19 pandemic has had a profound impact on the e-commerce landscape in Singapore. The pandemic has accelerated the growth of e-commerce in Singapore, with businesses turning to online channels to reach their customers. The pandemic has also led to a change in consumer behavior, with more consumers shopping online for essential items.
There are many reasons to choose Singapore for your eCommerce business. Singapore offers a favorable business environment, with a stable and pro-business government, and attractive tax incentives. Singapore is also a digital-friendly nation, with high mobile penetration and usage rates, and a strong telecommunications infrastructure. With its many advantages, Singapore is an ideal location for businesses looking to start or expand their e-commerce operations.