Areas of cooperation include fortifying Singapore’s role as an air cargo transshipment hub, developing innovative postal products for China and Southeast Asia and improving last-mile delivery capabilities in Singapore and beyond.
According to Statista, the region’s e-commerce market is expected to be worth US$186 billion ($242.51 billion) by 2025, up from US$139 billion in 2023.
"Singapore's strategic location and world-class infrastructure make it an ideal transhipment hub for the growing e-commerce sector in Asia. This collaboration with Cainiao aligns with our path of digitalisation and our focus on e-commerce logistics,” says Li Yu, CEO, International, SingPost. “By combining our strengths, we aim to enhance service quality for our customers."
William Xiong, senior vice president at Cainiao Group notes the “rising need” for “greater efficiency and faster delivery” amid the rapid growth of e-commerce in SEA.
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“We look forward to collaborating with partners like SingPost to contribute to a robust eCommerce logistics ecosystem. By integrating our technology with SingPost’s network, we aim to provide reliable logistics solutions that support global connectivity, facilitate trade between Southeast Asia and the rest of the world,” he adds.
The collaboration is set to commence with a pilot project in the coming months.
As at 1.03pm, shares in SingPost are trading 1 cent lower or 2.25% down at 43.5 cents.
