Amazon ramps up hiring in Singapore amid reports of 2017 launch

SINGAPORE — E-commerce giant Amazon is ramping up its hiring in the Republic, amid reports that it plans to expand to South-east Asia through a Singapore launch slated for the first quarter of next year.

Citing unidentified sources, online news site TechCrunch reported on Wednesday (Nov 2) that Amazon is covertly acquiring assets, including refrigerated trucks, and making new hires as part of an initiative led by head of business development for ASEAN Steven Scrive. The US company is likely to initially offer its Prime delivery service alongside its AmazonFresh grocery service in Singapore, the report said.

Amazon was unable to respond by press time, but checks by TODAY showed that the company has placed, on its jobs website, more than 70 ads for positions in Singapore over the last six months. This makes up nearly 80 per cent of the 95 open jobs it is hiring for positions here. The positions cut across a wide range of functions, including marketing, supply chain and business development.

With Singapore’s Internet penetration rate in 2014 among the highest in Asia at 82 per cent, according to World Bank data, e-commerce has taken off in a big way here, giving consumers access to a sea of choices at the click of a mouse.

According to the data from the InfoComm Development Authority (IDA), about 1.44 million Singapore residents shopped online in 2014, increasing at a compound annual growth rate of about 14 per cent from 2012.

The prospect of Amazon’s entry into Singapore would be “quite threatening” for current players in e-commerce as well as brick-and-mortar retailers, said Mr Samuel Tan, Temasek Polytechnic’s course manager for diploma in retail management. Amazon is a well-established brand known for its strong product variety and categories and with an edge in pricing, he said.

Entry into Singapore would mean greater convenience and accessibility for shoppers, if the company sets up customer service, logistics and networking here. Existing e-commerce players and retailers may have to build on their strengths and focus on specific product categories, or offer exclusive products, to differentiate themselves, he said.

CIMB Private Banking economist Song Seng Wun agreed, saying that it is up to the incumbents to face any potential challenges posed by Amazon entering Singapore. “Singapore at the end of the day is a small market. The pie is only so big, and if there is another player that pie will be smaller,” he said.

Amazon’s possible Singapore foray comes soon after moves by the US giant to enter India and China. It launched its popular Prime loyalty programme in India in July, three years after its entry into the world’s second-most populous country. In China, it launched a version of its Prime service last week, going head-on with Alibaba for the rising number of shoppers hankering after overseas goods.

Amazon Prime, which was launched in 2005, has attracted more than 65 million members in the US with free delivery perks and access to a library of videos and music.

Amazon’s possible entry into Singapore is already drawing excitement among consumers. “I’m excited because I tend to buy quite a few things from Amazon. My hope is that Amazon SG will allow me access to the items from the States, but without the need for me to spend extra money on mail forwarding services,” said Mr Tang Chee Seng, 29, freelance writer. Currently, he has to ship some items to an American address first before forwarding them to Singapore.

Amazon currently offers free shipping to Singapore for selected items, if they are sold by Amazon.com and if the total order is at least US$125 (S$172.90).

A 40-year-old homemaker, who wished to be known only as Mrs Tan, is a frequent user of online sites, including Amazon, RedMart, Qoo10 and Lazada. “I hope this entry (by Amazon into Singapore) will lower shipping prices,” she said. “RedMart has been very reliable but its groceries range is limited. Hopefully, Amazon Groceries will top that.” ADDITIONAL REPORTING BY NEO CHAI CHIN