Singapore's e-comm exports could grow 73% to S$3.5 bn in 2026: Study

19 Oct '21

2 min read

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The cross-border e-commerce sales from Singapore has been rapidly growing and its value is estimated to expand by 73 per cent to S$3.5 billion (Singapore Dollar) by 2026, according to a recent study. However, the country faces challenges in regard to high cross-border shipping costs, navigating a complex landscape of importing regulations in foreign markets and not having the knowhow to cater to overseas consumer preferences.

The sellers in Singapore currently earn an estimated S$1.4 billion from e-commerce sales made to overseas consumers annually, with 45 per cent of these earned by micro, small and medium-sized enterprises (MSMEs), as per the study conducted by AlphaBeta, a strategic economics.

The study found that with e-commerce, MSMEs can export at significantly lower costs than before. In Southeast Asia, where rapid growth in business e-commerce adoption has occurred over the past decade amidst rising internet penetration rates, e-commerce provides a platform for local MSMEs to gain access to a growing pool of foreign customers.

AlphaBeta, a strategic economics consultancy, was commissioned by Amazon to carry out a study aimed to examine the economic significance of the e-commerce export opportunity for MSMEs in Singapore, Thailand and Vietnam. The survey was done with over 300 micro, small and medium-sized e-commerce sellers, and around 87 per cent of them agreed that e-commerce is critical for their ability to export.

Fibre2Fashion News Desk (JL)

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