3 Reasons Why Singapore Is Ideal For Your E-commerce Business

Revenue in the Singapore e-commerce business market is expected to earn US$7.29bn in 2022 (Statista), and the great potential this country holds is not the sole evidence of the non-stop rising popularity among entrepreneurs.

Below you will find more about specific reasons why this city-state is a match made in heaven to start and grow an online business.

Owing to a pro-business environment, supportive government policies, and a thriving digital ecosystem, Singapore offers everything a business needs to succeed in the new digital age.

Prime location in an ideal business-friendly environment

Singapore’s location in the central area of Asia makes it the ultimate base to target growing markets. According to Statista, the e-commerce projected market volume of Lion City is approximately US$1,412bn in 2022. Most revenues originate from China.

In addition, the city-state has successfully developed a superb infrastructure system with numerous logistics and transportation enterprises, guaranteeing to support your Singapore-based e-commerce business.

The leading international transportation hub

In connection with 600 ports in more than 120 countries, Singapore is ranked among the easiest places to do business internationally. Even after the pandemic, Singapore holds its place as the exquisite destination for enterprises’ operations in 2022.

Read more on Singapore’s Trading Outlook of 2022 (Update Q4/2022).

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.

You can see how this tendency affects the industry as major global logistics agencies (e.g. FedEx, UPS, and DHL) are situated in Singapore as well.

Governmental supportive e-commerce business incentives

Your Singapore e-commerce business is eligible to benefit from the Singapore government’s startup tax exemption scheme, which is a 75% tax exemption on the first $100K of chargeable income and a 50% exemption on the next $100K.

Singapore also provides funding and grants to help businesses get started and grow by working closely with industry players.

The country’s e-commerce booster package is one of the most outstanding policies. The package aims to help brick-and-mortar retailers to get on board. Eligible individuals or organizations are able to receive one-time support for 90% of eligible costs (up to S$9K) for up to 6 months.

Singapore Startup schemes and SMEs Go Digital are government initiatives to assist entrepreneurs in Singapore. The schemes provide a range of support, including mentorship, funding, and resources.

Singapore is a certified 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.

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 of the government’s vision.

Singapore has a reputable telecommunications infrastructure and top-notch digital connectivity thanks to the image of the fastest Internet connections around the globe.

The Lion City won the fastest home internet speeds at 239 Mbps on average, in terms of median fixed broadband speeds.

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.

Conclusion

When it comes to launching an E-commerce business, Singapore offers a promising launching base owing to a preferable business environment, a stable political-wise government, plus beneficial tax incentives, high mobile penetration, and usage rates.

With its diverse strengths and competitive advantages, Singapore is ideally a key home base for businesses looking to start or expand their e-commerce operating platforms.