E-Commerce: 5 Reasons why you should choose Singapore as an entry point to South East Asia
1. High Smartphone Penetration
The city-state’s smartphone penetration stands at an astounding 90%. Together with the ultra-fast internet structure and the tech-savvy, affluent population, mobile commerce continues to grow as online shoppers become comfortable with making purchases on their mobile devices.
Despite being a late market entrant, Singapore-based e-Commerce platform, Shopee, took on the mobile-first approach in 2015 and captured the emerging trend, allowing them to take advantage of the continued growth in smartphone penetration.
2. English as our first language
Our first Prime Minister, Lee Kuan Yew, firmly believed that widespread English proficiency would be essential to developing Singapore’s global competitiveness. In 1987, we adopted English as the language of instruction for most school subjects.
Fast forward to 2021, having English as our main language has proved to be the edge we possess over other regional countries, offering a business-friendly environment for businesses looking for a foothold in the region.
3. High volume of Cross-border transactions
E-Commerce in Singapore is thriving, with 55% of our e-commerce transactions being cross-border. This percentage is much higher than our regional counterparts, and it can be partly attributed to our strong international ties, as well as Singapore’s position as a market-oriented and open economy.
4. Singapore as a Financial Hub
Singapore is ranked the 3rd largest financial center in the world, only behind London and New York. We have overtaken the likes of Hong Kong as a vital financial hub in Asia. What’s more impressive is that everything is achieved across the span of just 50 years.
With the low-tax environment and existing regulatory framework, Singapore remains as an attractive place for foreign direct investments and companies to set up their companies here.
5. Mature Payments infrastructure in place
With the Government’s efforts to transit to a cashless economy and the increasing digital adoption, we see an explosion of e-wallets emerging in Singapore.
Fintech, digital payments and blockchain technology are gaining traction as we continue to push for innovation and tech growth as part of Singapore’s economic development.