Data on Online Retail Transactions

The Government tracks Internet transactions made with locally-issued credit and debit cards. Over the past three years, the total value of such transactions with local entities was about $18.3 billion, representing around 74% of total Internet transactions. Internet transactions with foreign entities amounted to $6.4 billion.

About 3% of total retail receipts in Singapore come from e-commerce. While e-commerce presents competition to our local retailers, it also gives Singapore retailers the opportunity to expand their reach to the region and beyond. Under the Retail Industry Transformation Map (ITM) launched in September 2016, we aim to grow the e-commerce share of total retail receipts to 10% by 2020. This is in line with the retail ITM vision for a vibrant retail industry comprising a mix of highly productive omni-channel retailers and local brand owners with global footprints.

The Government will assist local retailers to build digital capabilities and enable access to e-marketplaces under the Retail ITM. As part of the SMEs Go Digital initiative launched at Budget 2017, SPRINGSingapore and IMDA have pre-qualified e-commerce solutions that can be readily adopted by SMEs. In collaboration with partners like Google, SPRINGSingapore also provides support to SMEs to strengthen their digital marketing. IE Singapore also helps companies leverage e-commerce to unlock growth opportunities in overseas markets. Besides support through the Market Readiness Assistance scheme and the Global Company Partnership scheme, IE Singapore connects companies to global, regional or niche e-marketplaces that are relevant to their internationalisation strategies.

Trade Associations and Chambers (TACs) are also important multipliers to accelerate e-commerce adoption among SMEs. For example, the Singapore Retailers Association (SRA), with the support of SPRINGSingapore and Workforce Singapore, is developing an SME e-Commerce Accelerator Programme to help retailers build integrated strategic plans for omni-channel implementation.

Besides TACs, we have also seen greater participation from the private sector in supporting our SMEs. The 99% SME movement is a national initiative led by SingTel, DBS and Mediacorp. Initiated in 2015, the effort makes e-commerce accessible to more companies through the set-up of an e-marketplace and offering training opportunities.

The Government also helps members of the retail industry workforce adapt and upskill to keep up with developments in e-commerce. To support this, SPRINGSingapore has worked with SkillsFuture Singapore to develop a skills framework for the retail sector incorporating e-commerce and digital marketing, which will be launched later this year.

Mdm Speaker, thank you. I would like to thank the Senior Minister of State for the answer. But one of the reasons why I am asking this question is in relation to a report by Visa several weeks ago highlighting that online transactions in Singapore have actually more than doubled in the past five years. And it accounts for about 25% of total spending on Visa cards in Singapore.

In relation to what the Senior Minister of State mentioned just now about public entities' data in relation to online spending, I would just like to enquire, first, whether that data is actually public and if there is a longer time series for analysts to access and to assess Singapore's private consumption, to assess also Singapore's Gross Domestic Product growth going forward. One of the reasons why I ask is, at the moment, I think it is not readily available in public whereas, if you see in the US and China, it is readily available. It could be because of various reasons, but I would like to hear the Senior Minister of State's response to that.

On top of that, how can e-commerce data be made more available to the public, going forward?

The data that I mentioned earlier is from MAS which tracks the Internet transactions being made with locally issued credit cards and debit cards. Having said that, I think that gives part of the picture because the entities being tracked who are parties to the transactions may not only be retailers. It could be, for instance, payment for bills and so forth. Having said that, we are also aware that there are various commercial studies being done by consultants on the state of e-commerce. So, I would like to refer the Member to the figure that I cited earlier, which is, that 3% of retail receipts in Singapore are from e-commerce.

If we want to make a comparison, in 2014, based on studies, we understand that e-commerce accounted for about 10%, 13% and 6.5% of total retail sales in China, the UK and the US respectively. So, this suggests that there is room for e-commerce to increase as a proportion of total retail activity in Singapore.

Thank you, Mdm Speaker. The analysis that the Senior Minister of State gave is really about e-commerce retail sales in Singapore. But I think the crux of the question here would be: Singaporeans are spending more, but are they spending more internationally with international brand retailers compared to, say, local ones? Are we losing out in terms of GDP for our local retailers to e-commerce? That is the key question. And do we track that?

As I mentioned earlier, under our retail ITM, our intention is to help foster a very vibrant Singapore retail scene and we want to see strong local brand owners with global footprints. In terms of strengthening the competitiveness of Singapore-based retailers' Singapore brands, vis-Ã-vis their global competitors, that is certainly a very important thrust of our work under the retail ITM.

So, to this end, we have various programmes and strategies in place to help our retailers improve their capabilities. Part of this would involve omni-channel capability building. It also involves up-skilling the workforce so that our retailers will be able to draw on expertise who understand how to operate in an e-commerce environment.

But I think this also involves, generally speaking, profiling Singapore brands in a variety of retail sectors. This is, indeed, a very challenging area but it is certainly a challenge that we recognise and which we are preparing our retailers for.

Just a question to the Senior Minister of State: will the Ministry consider tracking and publishing retail sales and e-commerce sales data regularly – as the Senior Minister of State has alluded to, it is being done in the US and China – in the future since this may be very important for stakeholders to understand?

Certainly. As I have mentioned, I believe that quite a number of such studies and figures are available being done by different organisations. These are all figures that we track because we do want to benchmark ourselves against the retail scene in different countries and to see where we stand. So, this is something we will constantly do.