Over time, Singapore has developed a logistics industry that has played a role in strengthening the country’s economy, placing them in a strong position within global trade and competitiveness.
Singapore’s logistics industry is well-structured, sophisticated, and efficient due to the frequent innovative ideas that have ranked their industry as one of the top logistics hubs in the world.
Singapore’s logistics industry has a strategic location, world-class infrastructure, and strong government support.
Singapore’s location falls at the crossroads of major shipping lanes. This makes the location an ideal hub for global trade because of the convenient connectivity to other countries and other parts of Asia through well-developed networks of air, sea ports, and efficient land transportation infrastructure. Singapore’s infrastructure supports its logistics industry through modern ports, airports, warehouses, and advanced information and communications technology (ICT) systems. Furthermore, Singapore is provided with strong government support after authorities realized the importance of logistics in their economy. The support they offered included policies and initiatives to support the sector, including financial incentives that promoted innovation and creativity.
Singapore’s logistics industry consists of important key segments such as freight forwarding, contract logistics, and land transportation.
Freight forwarding is crucial in coordinating the movement of goods through the global supply chain, through arranging transportation, customs clearance, and cargo insurance. Contract logistics provides a handful of services to manage the entire logistics chain process, starting at warehousing to distribution to order fulfillment to returns management. This system of processes allows businesses to fulfill their competencies and deliver customers’ logistics needs. Finally, land transportation is important in Singapore in terms of the roads, railways, and public transportation systems that support the movement of goods and people.
Singapore’s logistics industry plays a significant role in revenue and contribution to GDP.
In 2022, the logistics industry in Singapore generated approximately $61.77 billion in revenue, and is expected to grow to $84.7 billion by 2028 at a compound annual growth rate (CAGR) of 4.32%. The logistics industry contributes to approximately 5% of Singapore’s gross domestic product (GDP), making it an essential contribution to their economy. Singapore’s strong logistics industry allows the nation to be one of the world’s leading exporters.
This presents an excellent opportunity for investors to adopt Singapore as a potential country as their logistics market expands along with consumers’ demand for goods and services. The MBE Master Franchise can enter a rapidly growing industry, while also helping Singapore advance their international logistics presence with innovative market and logistics solutions.
(Photo: Unsplash)
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