Amazon invested $2 billion in Singapore in 2023
SINGAPORE – Amazon invested $2 billion across its retail and cloud businesses in Singapore in 2023.
The capital injection covers infrastructure upgrades to its fulfilment centres, delivery stations and data centres, the e-commerce giant said in a statement on Nov 28.
It added that the funds were also directed towards operating expenditure, covering technology, safety, as well as expansion programs for its customers, delivery partners, small and medium enterprises (SMEs), and employee compensation.
Amazon said that its investment in Singapore supported over 4,000 indirect jobs in sectors such as construction, logistics, and professional services. In addition, a separate survey found that Singapore businesses selling on its platform have created more than 6,000 jobs to support their Amazon-related activities. “In total, Amazon supported more than 10,000 indirect jobs in Singapore in 2023 alone,” the company said.
Mr Peter Li, director of Amazon China and Singapore, said the company has been investing in and expanding its presence in the Republic since beginning operations in 2010 and launching its local site, Amazon.sg, in 2019.
“We’re humbled to see our investments unlock growth opportunities for businesses in Singapore and are proud to continue to support Singapore’s economy and digitisation,” he said.
In 2023, Amazon launched the “Singapore Cross-border Brand Launchpad” in partnership with Enterprise Singapore and the Singapore Business Federation. The initiative aims to help over 100 local micro, small, and medium enterprises (MSME) expand into the US market by 2025.
The programme aims to equip at least 300 Singapore MSMEs with cross-border e-commerce knowledge through seminars, business reviews and business-matching.
In May, Amazon’s Web Services, the company’s cloud computing arm, announced plans to invest an additional $12 billion in Singapore’s cloud infrastructure over the next four years, following a $11.5 billion commitment in 2023.
Amazon’s investments in Singapore in 2023 adds to the growth of the e-commerce sector here.
A report published in November by Google, Temasek and Bain & Company found that Singapore’s e-commerce sector grew from US$8 billion ($10.74 billion) in gross merchandise value (GMV) in 2023 to $9 billion in 2024.
GMV is the total value of goods sold between customers or from e-commerce platforms. It does not include fees and deductions such as coupons.
The Republic’s overall digital economy is expected to hit $29 billion in GMV by the end of 2024, according to the report.