How to enter the Singaporean market

Singapore was Australia’s sixth largest trading partner in 2024, with total exports reaching AUD 23.3 billion. Precious metals, oil and natural gas dominate Australian exports, but other sectors offer promising opportunities, including food and agribusiness, aviation and aerospace, professional and financial services, technology and logistics.

Market entry models for exporting goods and services

Choosing an appropriate market entry model is essential for businesses looking to export to Singapore. Any choice should be informed by factors such as the overarching business strategy, target sector, and business size and maturity. It is important to note that market entry models frequently evolve over time.

A. Direct exporting

In direct exporting, businesses sell directly to a Singaporean customer from Australia. Exporting directly to Singapore requires a significant level of involvement in the export process, including market research, marketing, distribution, sales, product registration and approval, import-export licensing and receivables.

Direct exporting has some advantages, including:

• Greater control of commercial processes, including sales
• Better margins, as it avoids intermediaries
• More direct customer relationships

While there are benefits, direct exporting can ultimately involve higher establishment costs in Singapore. It may be necessary to employ dedicated in-house staff and other resources to manage the complexities of exporting and sales. Businesses that use this model may need to consider ways to offset these costs, such as employing an agent or distributor to handle local product registrations, while maintaining control over other aspects of the business, including marketing and supply chain management.

A direct export approach should be supported by references, brochures, catalogues and other product and business information. It also requires businesses to engage with customers regularly to build awareness and understanding of the products they are selling on an exporter’s behalf. In return, a retailer’s understanding of the Singaporean market can help with product development, pricing and marketing. Selling directly to local retailers can generally cut commissions, reduce travel costs and create an effective conduit to market.

B. Agents and distributors

Many Australian firms doing business internationally rely on agents or distributors. The roles of agents and distributors differ, and they can vary across industry. It is therefore critical that roles and responsibilities are clearly defined early in any agreement. 

Agents: Agents act as representatives of suppliers and do not take ownership of the products they sell. They are usually paid on a commission basis, which provides an incentive for them to drive sales. Being based in Singapore, agents will often represent several complementary products or services. They can be retained exclusively as the sole agent for a company’s goods or services, or as one of several agents for the exporter.

Distributors: Unlike agents, distributors buy goods from exporters and then resell them to local retailers or direct consumers. In some cases, a distributor may sell to other wholesalers who then on-sell to retailers or consumers. Distributors may carry complementary and competing lines and usually offer after-sales service. They earn money by adding margins to product prices. Distributor margins are generally higher than agent fees because distributors have costs associated with carrying inventory, marketing and extending credit for customers.

Choosing an agent or distributor: Whether a business decides to use an agent or distributor, it is essential to build a close working relationship. Due diligence when selecting an agent or distributor is important, and companies should ask for trade references and seek a credit check through a professional agency. It is best to meet any potential agents or distributors in Singapore – this provides them with an opportunity to demonstrate knowledge of the market and build a business relationship.

C. Online Sales

Singapore’s well-developed internet infrastructure and large mobile user base offer opportunities to sell products and services online. The e-commerce market was valued at AUD 12.5 billion in 2022 and is expected to grow to AUD 15.4 billion by 2026.

The Singapore Government is committed to its digital future. In 2025, Singapore had 5.61 mil-lion internet users and 10.5 million active mobile connections. The government has developed strategies to promote domestic and regional e-commerce. The Retail Transformation Map provides a support platform for start-ups in the sector and the Networked Trade Platform manages trade documents digitally, under the guidance of the Inland Revenue Authority.

As part of the strategy, Singapore has made progress on challenges to cross-border e-commerce that affect most markets, including payments, logistics, customs and border administration, market access and regulatory issues.

Accessing digital consumers: Singapore has one of the highest digital penetration rates in Southeast Asia at 95.8 per cent. But although nearly 60 per cent of Singaporean internet users regularly purchase a product or service online, there is still room for growth in the e-commerce market. Effec-tive marketing is vital when building trust and brand loyalty, particularly among those discovering online retail for the first time.

Top product categories for online sales include fashion, electronics and furniture, as well as personal and household care (Figure 2). And with 5.16 million social media users at the start of 2025 – around 88 per cent of the population - social commerce is a growing channel, with Facebook and Instagram emerging as important online sales channels.

Search engines: Google is the dominant search engine in Singapore, followed by Bing, Yahoo, and Yandex.

Figure 2: E-commerce spending on consumer goods (2024), AUD billion

Online sellers and marketplaces: While global e-commerce sites such as Amazon and eBay are available in Singapore, local platforms Shopee and Lazada dominate online selling, with Qoo10 being another important player. Businesses should note that online marketplaces often require trademark certification, an exclusive authorisation letter and a Singaporean business registration document before they are able to sell on these platforms.

Social media: YouTube has a significant presence in Singapore with more than 5.1 million users. Facebook, TikTok and Instagram had around 3.5 million users each. The Singapore Government has carried out several initiatives to develop a robust e-commerce market and is now taking steps to ensure greater security and trust on business-to- consumer platforms.

Investment environment

Singapore’s stable political and macroeconomic environment make it one of the most attractive destinations for foreign investment in Southeast Asia. Foreign direct investment (FDI) accounts for around 28 per cent of GDP, more than double the closest regional counterpart (Cambodia) and almost eight times its direct neighbour (Malaysia). Inward FDI flows reached AUD 291 billion in 2024, up 5.6 per cent from the previous year. Singapore actively encourages foreign investment, and its legal and institutional frameworks are friendly to foreign investors. The Singapore Economic Development Board is the principal investment promotion agency.

The Singapore Government prioritises investments that support the country’s economic development. Investments in certain sectors, such as tech, may be eligible for a wide range of financial and non-financial incentives. The four core pillars that the country is targeting for growth and investment are trade, enterprise, manufacturing and services. Within trade, Singapore remains one of the world’s busiest ports and a global aviation hub, enabling companies to connect seamlessly with regional supply chains. Priority areas include logistics, e-commerce fulfilment and smart supply chain solutions.

In the Enterprise sector support is available for startups and SMEs scaling into Southeast Asia - notably in areas of digitalisation, capability building and access to regional investor networks. Advanced manufacturing in electronics, semiconductors, and biomedical sciences continue to be focus areas and services have seen a recent boom in the growth of family offices. Within each of these pillars, key focus areas for investment include sustainability and the transition to green energy, innovation, and labour force upskilling.

Many investment opportunities align with the nation’s long-term economic development strategy and positioning as a gateway to Southeast Asia. Foreign investors can establish operations and leverage Singapore as a regional headquarters from which to expand into ASEAN’s 650-million-strong consumer market. Within each of these pillars, key focus areas for investment include sustainability and the transition to green energy, innovation, and labour force upskilling.

The Singapore Government offers a range of business incentives to encourage foreign investment:

• Pioneer Certificate Initiative: Firms with advanced technology can apply for corporate tax exemptions of up to 15 years and beyond (standard Corporate Income Tax is 17 per cent). 
• Development and Expansion Initiative: Firms can extend the period of their Pioneer Certificate Initiative, albeit at a CIT no lower than 15 per cent.
• Global Investor Program: Eligible global investors who intend to drive their business and investment growth from Singapore may be eligible for Singapore Permanent Resident status.
• Refundable Investment Credit: Eligible investors can qualify for 10/30/50 per cent rebate on qualifying expenditures in key economic sectors and new growth areas.
• Grants for Innovation: The Monetary Authority of Singapore offers fintech innovation grants that provide financial support to companies that establish a centre of excellence in Singapore, as well as for project and experiment funding. 
• A host of other grants incentive schemes are available to foreign investors. These include the Finance and Treasury Incentive, schemes that target innovation, research and development, capability development, and resource efficiency grants.
• More information on these can be found on the website of the Economic Development Board or the Monetary Authority of Singapore.

Investment rules and regulations

Singapore’s legal framework and economic policies are favourable to foreign investors and reflect the country’s open and diversified economy.

There are relatively few FDI controls. However, certain business structures do require a manager to either be a resident of Singapore or hold an EntrePass/ Employment Pass. Industries such as banking, construction and media are also subject to some legislative restrictions. The two main government agencies for attracting investment and promoting foreign trade are Enterprise Singapore and the Singapore Economic Development Board.

In 2024, Singapore passed the Significant Investments Review Act that outlines a new screening regime for major investments in companies deemed ‘designated entities’. A designated entity is defined broadly but requires investments into companies deemed critical to Singapore’s security be reviewed by the Ministry of Trade and Industry. The bill applies to both local and foreign investments.

Market entry models for investing

Choosing an appropriate market entry model is essential for businesses looking to invest in Singapore. A business’ size, sector and growth strategy will help determine which market entry model fits best. Investment models frequently evolve over time as businesses enter and expand in a market.

A. Representative office

Opening a representative office (RO) can be a useful and economical first step to explore business opportunities in Singapore. They enable a foreign company to assess the business environment without establishing a permanent establishment. However, ROs cannot conduct commercial activity and are limited to conducting market research and promotional activities.

 As an RO is treated as an extension of a foreign company rather than a separate legal entity, it will have the same name and brand as the foreign company. Instructions and guidelines for registration of an RO can be found on the Enterprise Singapore website.

Establishing a representative office in Singapore

B. Branch office

Establishing a branch office (BO) in Singapore allows a company to engage in the commercial activities that are prohibited for ROs, including to buy and sell products and services and enter contracts. A BO is also able to open bank accounts, raise local financing and hire employees. Unlike an RO, a BO is subject the local corporate tax rate of 17 per cent.

Whereas an RO only needs to register with Enterprise Singapore, the application to establish a BO must be submitted to the Accounting and Corporate Regulatory Agency (ACRA). The approval process usually takes 3 days but can take longer depending on whether other regulatory bodies need to approve the application.

Establishing a branch office in Singapore

C. Franchising

Franchising allows business owners to retain a measure of control while harnessing the energy of a franchise to drive expansion. Franchises project a company’s reputation and brand, and while it can be expensive, building a network of franchises is often cheaper than owning and operating your own retail or branch offices in foreign markets.

Franchising has been growing in popularity in Singapore thanks to its high per capita income, low barriers to market entry and absence of statutory regulations for franchising. In addition, Singapore is an excellent entry point into other emerging markets across Southeast Asia.

While there are no laws specifically defining ‘franchise’ as a unique form of business, many franchisees belong to the Franchising and Licensing Association of Singapore (FLA) which has developed a code of ethics for its members. Franchisees are subject to a minimum withholding tax rate, but this is superseded by Australia and Singapore’s double taxation avoidance agreement.

Like all other business activities, franchises are overseen by ACRA. Registering a franchise in Singapore requires a registration fee of SGD 300 (AUD 349), a name fee of SGD 15 (AUD 17) and annual filing fees of SGD 60 (AUD 70). FLA is a useful resource for gaining knowledge about Singapore’s franchising landscape and connecting with other international businesses.

Establishing a franchise in Singapore:

D. Joint venture

A joint venture (JV) is an agreement between two or more parties to work together on a specific project, rather than an ongoing business. JVs can be an effective way to undertake research and development, create a new product or provide a new service. A local Singaporean partner can provide knowledge and contacts, as well as a realistic assessment of risk. They can be established as either a Limited Liability Partnership (LLP) or a joint-stock company.

Each party is responsible for the profits, losses and costs associated with the activity, but a JV is an independent entity, separate from the parties’ other businesses.

A JV is underpinned by a legal agreement between the parties. A typical agreement should include details on the:

• Legal basis for the agreement
• Structure, governance and obligations of the joint venture
• Division of profits and losses
• Ownership of intellectual property
• Disagreement or dispute resolution processes
• Leave or termination conditions

E. Foreign-owned enterprise

A Limited Liability Company (LLC) is the most common form of foreign-owned enterprise in Singapore. Benefits of an LLC include the ease of transferring partial or full ownership and securing funding from local financial institutions. An LLC is taxed as a corporate entity at Singapore’s corporate income tax rate of 17 per cent.

This market entry model is suitable for a wide range of sectors, although there are some restrictions for real estate and media investments. Seek professional advice on the best structure for your business.

Establishing a foreign-owned enterprise in Singapore

F. Public-Private Partnership

A Public-Private Partnership (PPPs) is a contractual arrangement between the Singapore Government and the private sector. Under a PPP, the private sector can build, operate and maintain public infrastructure facilities and provide services traditionally delivered by government. Examples of these are roads, airports, bridges, hospitals, schools, prisons, railways, and water and sanitation projects.

Singapore adopted a PPP model in 2004. Since then, nearly 40 PPPs have been completed in Singapore across water and waste treatment, IT infrastructure, transport and education. PPPs are complex to structure and implement, but present opportunities for established businesses to enter the market.

Singapore first published guidance on PPPs as part of their Best Sourcing Framework, a program developed to encourage private sector entities to deliver noncore government services where it is efficient to do so. To engage in PPPs, businesses must register as a GeBIZ Trading Partner to bid for available opportunities. The length of the bidding process varies depending on the type and size of the contract.

Establishing a PPP in Singapore

Success in Singapore’s sophisticated market requires businesses to tailor their product or service. This should be based on detailed analysis of consumer trends, price consciousness, branding, marketing and advertising, and payment methods.

Consumer profiles and tastes are changing, largely due to demographic and technological shifts. As Singapore's population ages, middle-age Millennials will emerge as the most influential consumer group. As this trend puts pressure on Singapore’s social welfare system, spending is projected to rise on essential items like healthcare.

The retail landscape is being disrupted by the rapidly growing e-commerce market. Digital commerce has become mainstream, with 85 per cent of consumers now using their smartphone to shop online and twothirds using e-commerce apps for online purchases.

Businesses entering Singapore should adjust their value propositions to cater to emerging consumer trends. Introducing premium product lines, focusing on sustainability and tailoring products and services to increasingly health and wellness-conscious consumers can provide businesses with a competitive edge.

Singaporeans enjoy one of the highest per capita incomes in the world and household disposable income has risen consistently over the past decade (Figure 3). Understanding the characteristics, aspirations and spending habits of this emerging group of consumers is crucial for businesses looking to tap into the segment.

Consumer trends in 2024

Figure 3: Median disposable income per household (2016-2026f), AUD current prices

Price consciousness

At over AUD 113,000, Singapore’s national income per capita is the highest in Southeast Asia . While consumers are becoming increasingly value-conscious, Australian businesses targeting the Singaporean market benefit from a similar consumer environment that requires little adjustment in terms of pricing.

Branding

Branding is as critical in Singapore as in any market, and companies need to research and understand the specific tastes of consumers to achieve success. In Singapore, as in much of Asia, prominent highquality brands are in demand, though new entrants are becoming increasingly popular. New brands can establish a reputation in the Singaporean market through targeted promotion campaigns.

Australian products have a strong reputation in Singapore. In some sectors Australian businesses enjoy a branding advantage simply by virtue of their products being made in Australia. An emphasis on Australian origin can be a marketing tool for businesses expanding into Singapore, particularly in the food and beverage and agricultural sectors.

Marketing

Trade marketing to distributors and retailers is a popular and effective way for businesses to gain traction in the Singaporean market. A trade show can be a useful starting point. These are effective ways to reach new consumer bases and potential clients, while also offering insights into the operations of competitors and providing a forum for networking and relationship building.

Singapore hosts close to 100 trade shows each year across the food and beverage, fintech, travel and innovation sectors. Due to its strategic position as a trade and business hub, many of these shows have the added benefit of attracting potential customers from across the region.

Sales promotions can also help establish a brand with high-impact campaigns. Providing special discounts and events can be an effective way to build consumer loyalty and product awareness – particularly in sectors that are crowded with incumbents. 

With high smartphone penetration at 97 per cent, digital marketing methods are now a mainstay in Singapore. Email, text, search engine optimisation and social media are integral parts of a comprehensive marketing campaign. Marketing and promotional material – at trade shows, sales promotions or anywhere else – can be provided in English.

Advertising and media

With near-total internet and smartphone penetration, digital advertising is essential in Singapore. The largest audience as measured by total potential ad reach is X (previously Twitter), followed by YouTube and LinkedIn (Figure 4). Potential ad reach on TikTok has increased significantly, growing 41 per cent year-onyear in 2023.

As with trade shows and other marketing and promotional efforts, advertising content can be created and shared in English, with no need for translation.

Advertising is lightly regulated in Singapore. The Singapore Code of Advertising Practice (SCAP) is enforced by the Advertising Standards Authority of Singapore (ASAS) and requires that ads be legal, decent, honest and truthful. The ASAS receives complaints and determines if there is a violation of the Code.

Figure 4: Digital advertising audiences in Singapore (2025)

Digital payments

Singapore’s digital payment infrastructure is advanced and over 90 per cent of consumer payments take place via digital channels. While debit and credit cards are the dominant form of payment, e-wallet use now accounts for nearly one in three B2C e-commerce payments (Figure 5). Sustained growth in digital payments is expected as Singapore’s fintech sector matures and banking becomes increasingly digitised.

The Monetary Authority of Singapore (MAS), aims to improve the digital payments ecosystem. In 2017, MAS established the Payments Council, a revolving group of twenty executives from the private sector to drive the digitisation process. Initiatives include the development of a single QR code to enhance interoperability between payments systems, the FAST programme to facilitate Singapore Dollar transfers between banks and non-financial institutions, and a Unified Point of Sale so that consumers can make digital payments using a single interface.

By 2030, debit and credit cards are still expected to account for 45% of in-person payment value, while e-wallet usage continues to rise. Popular choices for in-store payments include DBS PayLah! (25%), Apple Pay (22%), GrabPay (12%), and Google Wallet (12%). For online shopping, Apple Pay (24%), PayPal (20%), ShopeePay (18%), and GrabPay (18%) lead the way.

Digital payments can make financial transactions safe, cheaper and more convenient. As digital payment options continue to expand and evolve in the Singapore market, businesses should consider integrating them into their business model.

Figure 5: Payment methods for B2C e-commerce, % (2024)

A well-considered market entry strategy should take a systematic approach that supports long-term success. This section summarises the factors businesses should consider when formulating an approach to the Singaporean market into a series of key questions.

Asialink Business provides advisory services and capability training programs to help organisations understand and access opportunities in Asian markets. Should you have questions about any aspect of your Singapore market entry strategy, please contact us. Austrade’s Singapore office also provides services and support to Australian businesses with an interest in Singapore (details can be found in Section 5.2).

Calibrating Ambition

• What is your company’s aspiration for the market?
• What are the challenges and risks you will need to mitigate?

Consumers

• What is the current or potential demand for your product or service in Singapore?
• Who are the primary customers / consumers for your product or service in the market?
• How will you tailor your product or service to local preferences?

Competitors

• Who are your competitors in the market, and what is their offering?
• How does your product or service compare to competitors on price?

Sales, Brand and Marketing

• What is your unique value proposition for the market?
• What is the ideal mix of marketing and sales channels to reach your target customers?
• Is your marketing strategy aligned with your identified consumer base and value proposition?

Mode of Entry

• What is the right market entry model for your business?
• What are the specific geographies you should target?

Delivery Partners

• Does your team have the right mix of skills and expertise to support your market entry?
• What partnerships will contribute to your business’ success in the market?
• What external advice do you need to commission?

Operating Model

• What changes do you need to make to your business across areas such as operations, HR, finance and IT?

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