ASEAN Briefing 11 Feb 2021
Singapore’s Minister of Trade and Industry Chan Chun Sing has introduced the latest strategy to transform the country into a regional and global e-commerce hub. The initiative was announced at the 2021 Amazon Southeast Asia Online Seller Summit, where the minister also noted that online sales in Singapore as a proportion of total retail sales had increased from 5.8 percent in January 2020 to 14.3 percent in November.
According to a report conducted by Google, Temasek, and Bain & Company, Singapore’s e-commerce industry is set to be valued at US$22 billion by 2025, from its current US$9 billion estimations. Despite this small valuation compared to that of its ASEAN neighbors, the country’s strengths lie in its capacity to attract multinational firms from all industries.
Singapore has long been a preeminent destination for establishing regional headquarters for many international firms. The country’s tax and legal regimes are considered among the most investor-friendly in the world, and its financial industry is highly integrated with the global international markets.
Strengthening digital infrastructure
The first initiative will be to strengthen Singapore’s digital infrastructure, particularly in digital connectivity, data analytics, payment systems, and new business innovation.
A key initiative will be developing 5G infrastructure; the backbone of the country’s digital economy. Some 50 percent of the country will have 5G coverage within two years and there will be two nationwide 5G networks by 2025. The greater bandwidth from the networks will enable an increase in capacity to handle large e-commerce orders.
Furthermore, the government is encouraging local businesses to adopt digital solutions, such as e-payments and e-invoicing. For example, Singapore’s Myinfo SingPass, an electronic ‘Know-Your-Customer’ system, has already unlocked more online lending and the National Digital Identity (NDI) platform allows Singapore residents with the means to provide their identity and sign documents digitally.
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