Singapore Emerging as Hub for Cross-Border E-commerce Platforms
Singapore has become the hub of cross-border e-commerce platforms in Southeast Asia, digitizing across production, trading, sales, payments, and logistics, according to Deloitte.
Amid this growth, the country faces a shortage of digital talent specializing in e-commerce, digital marketing, and traditional marketing. To stay competitive, the country needs 1.2 million more digital workers by 2025, reported Amazon Web Services.
Meanwhile, Salesforce’s Global Digital Skills Index study reports that 64% of local workers feel unprepared with workplace digital skills, and only 29% are upskilling.
Singapore has also become the region’s entry point into other markets due to its highly-reliable payment gateway and logistics services. The World Bank has ranked the country as Asia’s top logistics hub for 10 consecutive years.
In its Technology-empowered Digital Trade in Asia Pacific report, Deloitte revealed that Singapore’s e-commerce industry is fuelled by the 15 ASEAN unicorns with regional headquarters there. These include Grab, Carousell, Lazada, Ninja Van, Shoppee, each valued at US$1 billion.
Additional drivers include its strategic location, advanced digital economy, and developed Internet market.
Widespread internet penetration and the rise of tech-savvy consumers in 2020 propelled Singapore’s cross-border e-commerce market to US$2.15 billion or 35% of its total e-commerce market. Digital payments total a high 85.2%.
This 2022, e-commerce revenues are projected to hit US$7,157million, while the number of users is seen to hit 4.1 million. By 2025, Singapore’s e-commerce market is projected to double, with gross merchandise volume amounting to US$8 billion. On the other hand, Bain & Company projects the country’s e-commerce sales to grow to US$10 billion by 2026.