The Wholesale Trade sector in Singapore is made up of more than 34,500 companies, spanning from commodities to industrial and consumer products. These include Shell Petroleum and Future Electronics as well as home-grown local enterprises such as Olam International, Kino Biotech and Luxasia. More than 90 percent of them are SMEs.
Together, they contribute to 16 percent of Singapore’s GDP and employ 350,000 workers, the equivalent of 9 percent of Singapore’s workforce, making it a key pillar of Singapore’s economy. Given Singapore’s status as a well-connected global trading hub, the USD 35 billion it brings in annually is set to rise.
The Evolving Landscape
Asia’s rapid population growth has been driving the region’s urbanization and consumerism. The ever-increasing tech-savvy consumers that make purchasing decisions on the go have steered sales in an upward trend. This has resulted in the region’s demand for goods such as food, equipment, and smart devices.
According to Research and Markets, the global business-to-business (B2B) e-commerce market size is estimated to reach USD 21 trillion by 2027. B2B e-commerce platforms play a pivotal role, helping SMEs and large-scale enterprises establish new trading relationships between companies in addition to supporting existing relationships. They enable businesses to lower their marketing expenses, better management of the suppliers and customers, and boosts sales engagement. Businesses need to adapt and connect to emerging B2B e-commerce platforms to continuously stay ahead of the competition.
Opportunities in the Wholesale Trade sector
With a stable government and robust trade infrastructure, foundations for wholesale trade are sound, putting Singapore in good stead to grow its reputation as a trading hub. The government’s commitment to strengthening enterprise capabilities to nurture this vibrant ecosystem will attract global players.
On a local front, the emergence of digital marketplaces as an alternative channel for wholesale trade has enabled traders to engage a wider audience and enjoy significant economies of scale. Digital marketplaces will allow companies to pool resources and complement their product offerings, benefiting SMEs. There is great opportunity for SMEs to ride this digital wave to automate and streamline their processes to be more productive.
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