Looking to expand your logistics business to the region and beyond? Take a look at the support and opportunities for your logistics business available to you.
Apply for the Market Readiness Assistance (MRA) grant to help you enter a new overseas market.
Designed for SMEs, you can receive up to 70% support to defray cost for overseas set-ups, identifying business partners and overseas market promotion.
Find out more about the Market Readiness Assistance grant.
Apply for the Double Tax Deduction for Internationalisation to receive tax deduction on eligible expenses. The supported activities include market preparation, exploration, promotion, and presence.
You can receive up to 200% tax deduction on eligible expenses.
Find out how the Double Tax Deduction for Internationalisaton can help you save on business taxes.
With a population of over 1.3 billion people, China is one of the fastest growing economies in the world. The gross revenue of the logistics industry in China was S$1.62 trillion, and in 2016 had contributed 14.9% of the country’s Gross Domestic Product (GDP).
Singapore companies can take advantage of the growing demand for goods and services that drives the thriving logistics industry there.
The World Bank estimates that 70% of China’s households will live in towns and cities by 2030.
With a growing urban population, you can find opportunities in Tier 2 or Tier 3 cities such as Hangzhou, Wuhan and Chengdu. These markets offer the advantages of lower costs and first mover advantage.
With a highly fragmented logistics market with 700,000 players, there is scope to optimise the cost efficiency of logistics services in China.
You can differentiate your logistics services by developing niche capabilities or focus on sectors like chemicals, e-commerce, food and pharmaceuticals.
China’s e-commerce sales accounted for 23.1% of all retail sales in the country in 2017. This figure is expected to increase to 40.8% by 20213.
However, there remain challenges in the areas of order management, last mile delivery and in getting the necessary licences across provinces.
You can enter the Chinese market by forming strategic partnerships with local players. These include logistics service providers, major consumer brands, and state-owned enterprises.
Find out how you can enter the China market.
3: eMarketer
India’s logistics industry, expected to be worth US$215 billion (S$290 billion) by 20204, is a lucrative market for foreign players.
Doing business in India can be challenging. This is due to the lack of good infrastructure and connectivity. Moreover, the 29 states in India have different languages and customs.
Look for reliable partners to provide you with a local network, customer accounts and infrastructure.
You can capitalise on the need for reliable logistics providers as India has liberalised foreign direct investments in multi-brand and single brand retailers.
Identify and engage early with foreign brands setting up shop in India before they finalise their logistics arrangements.
India offers many opportunities for your logistics business in the following areas:
These growth areas present opportunities for you to provide freight forwarding services that handle overseas export, and for warehousing and local distribution services. Choose to have a long-term perspective instead of focusing on short-term wins.
Find out how you can expand into the India market.
4: “Economic Survey 2017-18”, India’s Ministry of Finance, 2017 5: “Indian Cold Chain Industry Outlook 2022”, RNCOS, 2016 6: “Indian Pharmaceuticals Industry Report”, IBEF, 2018
Myanmar is one of the fastest growing economies in East Asia. The World Bank expects its GDP to grow about 7% from 2018 to 2020.
The Myanmar government has drawn up a National Logistics Master Plan. The plan aims to create an efficient and competitive logistics system that attracts foreign direct investments and enhances industrial development. This opens up opportunities for Singapore companies in the growing Myanmar market.
As Myanmar changes from a centrally-directed economy to a market-oriented one, be flexible when you do business there, as there is still a lack of clarity in jurisdiction on foreign investments.
According to the National Logistics Master Plan, the movement of cargo to and from Myanmar is expected to double to 312 million tonnes by 2030, from 169 million tonnes in 2015.
If you want to enter the Myanmar logistics market, there is first mover advantage. Cultivate relations with key players early before the entry of other foreign interest and investments.
Myanmar is a major exporter of metals, natural gas, oil, precious stones and teak, with potential export ventures in agriculture and fish farming.
You can target numerous logistics opportunities in Myanmar in the following areas:
When you explore logistics opportunities in Myanmar, adopt long-term growth strategies. Put in place ample risk mitigation plans to prepare for contingencies.
Find out how you can enter the Myanmar market.