Amazon to invest over SG$2bn into Singapore

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Amazon has invested more than SG$2 billion in Singapore for 2023 across its retail and cloud operations.

This investment includes capital expenses to improve infrastructure such as fulfillment centers, delivery stations, and data centers. It also covers operational spending on technology, safety, and programs for customers, delivery partners, small and medium businesses, and employee compensation.

According to third-party consultancy Keystone Strategy, these investments have supported over 4,000 indirect jobs in sectors such as construction, logistics, and professional services.

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Meanwhile, an internal survey by Amazon suggests that businesses in Singapore using Amazon's platform have generated more than 6,000 jobs related to their Amazon activities, contributing to a total of over 10,000 indirect jobs in Singapore for the year.

“Since the start of our operations in Singapore in 2010 and the launch of Amazon.sg in 2019, we’ve been able to invest and grow our presence in the country with the support of our customers and selling partners. 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," said Peter Li, director of China & Singapore, international store at Amazon.

In addition, Amazon's commitment to the Singapore market is demonstrated by its operational expansions since launching Amazon Prime Now, now known as Amazon Fresh, in 2017 and Amazon.sg in 2019. These developments have enabled the company to offer same-day and next-day delivery services for eligible products.

The investment and expansion efforts underscore Amazon's role in enhancing Singapore’s digital economy and customer service infrastructure, said a press statement seen by MARKETING-INTERACTIVE.

Earlier in May this year, Amazon Web Services (AWS) planned to invest an additionalSG$12 billion into its existing cloud infrastructure in Singapore from 2024 to 2028 and has launched a flagship AI programme called 'AWS AI Spring' to enable the adoption of AI across the local economy.

The investment builds on AWS’s previous investment of SG$11.5 billion in the AWS APAC (Singapore) region bringing the total planned investment to over SG$23 billion by 2028 to meet growing customer demand for cloud technology and services in the country.

The new planned investment is estimated to contribute SG$23.7 billion to Singapore’s Gross Domestic Product (GDP) by 2028 and support an estimated average of 12,300 full-time equivalent (FTE) jobs in local Singapore businesses each year, according to an AWS Economic Impact Study (EIS).

The jobs include those in construction, facility maintenance, engineering, telecommunications, and other jobs within the country’s broader economy that are part of the AWS data centre supply chain in Singapore.

Singapore is not the only country in the region to attract large investments. Across the broader, tech giant Google said that its investments in Malaysia is estimated to support more thanUS$3.2 billion in positive economic impact and will create 26,500 jobs by 2030.

In tandem, Google announced a series of local digital skilling and sustainability partnerships that build on the strategic collaboration it established with the government of Malaysia to enhance its digital competitiveness.

Most recently, earlier this week Apple offered to increase its investment into Indonesia to persuade the government to lift its sales ban on the iPhone 16.

The proposal would reportedly see Apple invest almost US$100 million into the country, people familiar to the matter said to media. In addition, the US$100 million investment would contain a research and development center programme and a professional developer academy too, according to media reports.

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