Singapore Residents' Total Spending on E-Commerce Platforms and Measures to Support Local Businesses
Ministry of Trade and IndustrySpeakers
Summary
This question concerns Mr Gan Thiam Poh’s inquiry regarding Singapore residents' expenditure on overseas e-commerce platforms and the government measures implemented to help local businesses compete. Minister of State Low Yen Ling clarified that while the Ministry of Trade and Industry does not track overseas spending, local online retail sales rose from 5.8% in 2019 to 13.1% in 2022. She highlighted that Enterprise Singapore supports businesses in developing data analytics, omni-channel strategies, and international marketplace presence to expand their customer base. Examples like Castlery and Skin Inc illustrate how government-backed branding and digital innovation enable homegrown companies to capture significant international revenue and differentiate their offerings. The government continues to assist enterprises in leveraging e-commerce potential through capability building and strategic positioning in the global digital economy.
Transcript
21 Mr Gan Thiam Poh asked the Minister for Trade and Industry (a) whether the Ministry tracks the amount of expenditure made by Singapore residents at overseas e-commerce platforms; (b) if so, what is the trend and percentage of the total expenditure by Singapore residents on these overseas e-commerce platforms as compared to purchases made offline locally; and (c) what measures have been taken to support local businesses in the competition against these overseas e-commerce platforms.
The Minister of State for Trade and Industry (Ms Low Yen Ling) (for the Minister for Trade and Industry): Mr Speaker, the proportion of online retail sales has increased over the past few years from about 5.8% in 2019 to about 13.1% in 2022. This only includes sales done through retailers registered with the Accounting and Corporate Regulatory Authority (ACRA). The Ministry of Trade and Industry (MTI) does not track the expenditure made by Singapore residents on overseas e-commerce platforms.
The retail industry has changed significantly with digitalisation and the growth of e-commerce platforms. With the shift to online retail, our enterprises can leverage on e-commerce platforms to access new customers locally and overseas.
We have implemented a range of initiatives to help our businesses adapt and compete. Enterprise Singapore (ESG) supports companies in building their capabilities in data analytics and order fulfilment, getting on board e-commerce platforms, such as Amazon and Qoo10, and developing omni-channel sales strategies. With the help of e-commerce solution providers, we also support enterprises in selling their products on multiple overseas e-marketplaces, so that they can expand their customer base.
For example, ESG provided targeted branding and strategy support to homegrown company Castlery in their expansion into the United States market in 2019. Today, Castlery's international orders account for more than 70% of its revenue, compared to 20% before the COVID-19 pandemic.
In the global marketplace, it becomes even more important for businesses to differentiate their products and position themselves to serve customers better.
For example, ESG supported homegrown company Skin Inc in developing a mobile app that provides customers with personalised diagnoses of their skin condition and recommendations of customised products.
The Government will continue to work with enterprises to adapt and innovate for greater e-commerce potential.
Mr Speaker: Order. End of Question Time. We have finished up all the Parliamentary Questions for Oral Answer. I propose to take an extended break now. I suspend the Sitting and will take the Chair at 3.30 pm. Order.
Sitting accordingly suspended
at 2.40 pm until 3.30 pm.
Sitting resumed at 3.30 pm.
[Mr Speaker in the Chair]