Businesses have been exceedingly impacted by the disruptions caused by COVID-19, both financially and culturally. To deal with these disruptions, Singapore companies have increasingly gone digital, either adding or completely transforming their businesses to include e-commerce capabilities. South-East Asia’s e-commerce market is rapidly growing and set to hit US$256 billion by 2026, making it an extremely sustainable revenue stream for budding entrepreneurs. This titanic shift in the retail sector is rapidly speeding up the decline of brick-and-mortar shops, and paving the way for a digital future.
This article is Part 1 of InCorp Global’s 3 part series on starting an e-commerce business in Singapore, and outlines the reasons why Singapore provides an ideal environment for your new e-commerce business, with parts 2 and 3 diving deeper into the steps you need to take to accomplish this.
Why Register your E-commerce Business in Singapore?
Let’s begin with the obvious: In many of our articles, we have touted Singapore’s robust economy and infrastructure, strong government policies that protect business IPs, and an extremely competitive corporate tax rate. This island nation ranks second in World Bank’s ease of doing business. These reasons alone make Singapore an ideal location to start any business. But why specifically e-commerce?
Government Initiatives for E-commerce Businesses
The Singapore Government has been hard at work in launching initiatives targeting entrepreneurs seeking to launch e-commerce businesses in Singapore, as well as attracting foreign e-commerce brands to set up shop here. These initiatives include:
|The Retail Industry Transformation Map (ITM)||Launched in 2016 and revised in 2020, the Retail ITM included key strategies to support the innovation and adoption efforts in Singapore’s Retail Sector. In accordance with the Retail ITM, Singapore’s Infocomm Media Development Authority (IMDA) have developed various support initiatives to help new and existing companies develop their omnichannel streams, particularly the development of e-commerce platforms that gives SME retailers an online presence to market their services, receive payments and fulfill orders.|
|Action Community for Entrepreneurship (ACE)||Action Community for Entrepreneurship (ACE) – Formerly a government project under the Ministry of Trade and Industry, ACE was set up in 2014 to assist e-commerce SMEs seeking to expand and develop industry-specific networks and skills. Now a private-led action, ACE Supports e-commerce businesses by providing a networking platform to connect them with technology and funding, workshops for skill-building and improving collaboration between Singapore SMEs and enterprises.|
|SkillsFuture Skills Framework for Retail||As a national movement providing opportunities for Singaporeans to upskill their capabilities, SkillsFuture has expanded its existing retail framework, providing Singapore’s workforce skills crucial to e-commerce businesses: digital resource management, content development, data analysis and more. e-commerce Startups in Singapore will be able to capitalize on this by helping their employees invest in upgrading their skills through the SkillsFuture Framework.|
5G Networks and Internet Speed
Singapore boasts one of the fastest and most stable internet connections in the world, consistently ranking at the top of the list when it comes to broadband download speeds. To maintain its status as a digital hub and Smart Nation, the Singapore Government plans to launch two 5G networks nationally by 2025, massively boosting its already fast speeds. For entrepreneurs now and in the future, the Ministry of Trade and Industry notes that this will form the backbone of Singapore’s digital and e-commerce market, boosting the infrastructure’s capacity to manage large online orders both locally and internationally.
A Networking Hub for Innovation and Collaboration
Thanks to the reasons mentioned above, Singapore has become an attraction for e-commerce businesses big and small. This influx of talent, business and industry expertise provides the perfect networking opportunity for entrepreneurs seeking to start their own e-commerce business. Next year’s E-commerce Expo Asia is the perfect example of this. To be hosted in Singapore, the expo aims to provide attendees with end-to-end e-commerce knowledge and facilitate collaboration and networking between industry veterans and new up-and-comers.
Beginning your E-commerce journey
Singapore is currently perfectly positioned to provide the perfect springboard to jumpstart your ecommerce business. This industry is the future and is already changing how we do business. You can take the leap confidently and successfully, knowing that InCorp Global is beside you. As the leading provider of corporate solutions in South East Asia, we deliver an integrated ecosystem for those looking to establish their first e-commerce business or expand their operations to Singapore and beyond. If you would like to learn more, please contact us today.
FAQs in eCommerce Business Registration in Singapore
- In addition to low corporate tax rates and a robust economy, Singapore boasts an excellent digital and broadband infrastructure, many government support packages for technology and innovation, and provides several opportunities for collaboration and innovation.
- The e-commerce market is rapidly growing in the wake of COVID-19, and is expected to grow to $13.4 billion by 2026.
- Registering an e-commerce company in Singapore is very easy provided you have the right team assisting you. If you have any questions or would like to learn more, please contact us using this Incorporate now link!