S’pore’s electronic economy will grow to US $ 15 million by 2021 – Health Guild News

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Singapore’s internet economy is expected to grow by 35%, from $ 11 billion in 2020 to $ 15 billion this year.

By 2025, it is expected to reach $ 27 billion, Google, Temasek and Bain & Company said in the sixth edition of the e-Conomy SEA report released today (November 10).

Two-thirds of the improvements in the value of growing goods (GMV) are led by e-commerce. The segment rose 106 percent compared to a year ago, with e-commerce showing significant innovation in e-power.

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Overall, Singapore has the highest proportion of digital consumers of all Internet users in Southeast Asia, at 97%. The region’s average is 80 percent. Singapore’s digital merchants are also more inclined to delve deeper into the use of digital services.

Sight recovery for the economy in general

The report also showed that pre-pandemic users have consumed an average of 2.9 times more services since Covid-19 began.

There is also a strong grip on digital users returning for more, with 99% of users intending to continue using digital services in the future.

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Digital financial services also remained in the spotlight, with four digibank licenses granted by the Singapore Monetary Authority (MAS) and major investments in financial market infrastructure.

The report noted that travel demand shows first signs of recovery, as seen with a 28% increase from $ 1.8 billion in 2020 to $ 2.3 billion in 2021. The improvement was driven by the gradual easing of restrictions through schemes such as vaccinated travel. Lanes (VTL).

Image credit: Google, Temasek, Bain & Company

“The day Singapore announced VTL with Germany and Brunei, Germany’s search trends increased by 700 per cent,” the report notes.

Digital marketers rely heavily on Internet sales

In Singapore, 38% of digital traders believe they would not have survived the pandemic if it were not for digital platforms.

“While digital merchants use an average of two digital platforms, profitability remains a major concern. Digital financial services are also becoming critical facilitators, with 89 percent of digital merchants now accepting digital payments. “, says the report.

Image credit: Google, Temasek, Bain & Company

Meanwhile, 37% of digital merchants are adopting digital lending solutions.

Many are also adopting digital tools to interact with their customers, with 43% expecting to increase their use of digital marketing tools over the next five years.

Funding here continues to reach new heights

The agreement activity recovered strongly in Singapore during the first half of 2021 and is on track to surpass the activity of recent years.

As investors get used to the “new normal” of making deals, through digital channels and meetings.

The report noted that Singapore added most new unicorns this year and remains an attractive hub for the regional digital economy.

“The appetite for investment remains strong in digital services that increased as a result of Covid-19, such as e-commerce, e-commerce facilitators and FinTech,” he noted.

Singapore is a key player in fundraising at SEA

In terms of investor interest, a recovery is observed, as the value of the agreement in the region reached US $ 4.3 billion during the first half of 2021. This is due to interest in special purpose procurement companies (SPACs) and the government’s focus on making Singapore the preferred destination for listing. .

Florian Hoppe, Asia Pacific’s partner and head of digital practice at Bain & Company, said Singapore’s internet economy is showing “long-term resilience and has emerged stronger after a contraction in 2020”.

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“While we predict a large margin for growth in the next digital decade, Singapore needs to lead and map growth pathways as a leader in digital innovation for the region,” he said.

The continued growth of the Internet economy has led to a new set of opportunities in Southeast Asia, and Singapore is “well positioned to be a model for Southeast Asian countries in preparing their talent, SMEs and emerging companies for the digital decade “. “, Added Stephanie Davis, vice president of Google Southeast Asia.

The Republic will continue to play a comprehensive role in driving the growth of the region’s Internet economy, as it is a technology hub and a gateway for funding and talent, according to Rohit Sipahimalani, chief strategist. investments; head of Southeast Asia, in Temasek.

This is seen through the efforts of the public and private sectors to foster innovation, build infrastructure and develop talent, he said.

Featured Image Credit: Ninja Van





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