Singapore is considered a great safe haven for businesses. For over a decade, the country has been among the most crucial financial and business hubs of Southeast Asia, drawing in entrepreneurs from across the continent and around the world.
Singapore is known as the go-to destination for multinational corporations because of its stable economic and political systems, high-quality infrastructure, and digital-friendly environment.
A number of American companies, including Cisco Systems Inc. CSCO, IBM Corp. IBM, Microsoft Corp. MSFT and Apple Inc. AAPL established regional headquarters in the country.
Singapore is experiencing rapid growth in e-commerce. The industry was valued at $5.9 billion last year and is expected to reach $14.2 in 2025, according to data and analytics firm GlobalData.
E-commerce is expected to generate over $7 billion in Singapore this year, with the number of users projected to reach 4.1 million.
In addition to having an advanced digital economy, factors fueling the growth of e-commerce include Singapore’s stable economic and political system and a highly developed internet market. A number of fintech companies have made Singapore their home, which has provided reliable and affordable alternative payment solutions.
The country’s reliable logistics services — ranked as Asia’s top by the World Bank — have given industry players the opportunity to serve both local and international markets. In 2020, cross-border e-commerce will amount to over $2 billion, accounting for 35% of the country’s total e-commerce revenue.
Singapore has one of the highest rates of digital adoption in the world. With over 5 million internet users, Singapore’s digital penetration of 90% is higher than the global average of around 60%. The nation is working on a project to roll out the fifth-generation (5G) network countrywide by 2025, a move that will push its digital adoption even further.
Social Commerce Reportedly Drives E-Commerce Growth
A new form of e-commerce called social commerce is emerging in Singapore, providing an avenue for buyers and sellers to interact on social media platforms. The industry is expected to grow from $940.9 million in 2022 to over $7 billion by 2028, according to a report by Research and Markets.
The ability to browse and purchase goods on social media platforms has compelled brands to use paid and organic posts to drive traffic to their websites. Just recently, TikTok rolled out an e-commerce solution in Singapore called TikTok Shop. TikTok Shop allows users to directly interact with brands and sellers using their TikTok application.
Live Streaming Fueling Growth Too?
Live streaming became increasingly popular in Singapore during the COVID-19 pandemic. As shops were forced to close, live streaming became the only option for shoppers to interact with brands.
Even after the pandemic, live streaming is reportedly gaining popularity — especially among millennials. The growing live-streaming market has attracted the attention of social commerce startups such as Upmesh.
Looking To Enter Singapore’s E-Commerce Market Through Acquisitions
Singapore-based e-commerce holding company Society Pass Inc. SOPA says it’s growing its presence in Asia and around the world through acquisitions. The company’s most recent acquisitions are Gorilla Networks and Thoughtful Media Group.
Focusing on the emerging live-streaming and influencer market trends, TMG encourages its content creators to develop short videos and build their presence on social media platforms, an industry that’s booming in Vietnam, Thailand, the Philippines, Singapore and Indonesia.
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