As global supply chains become increasingly complex and cross-border trade continues to grow, Singapore’s logistics industry is facing new opportunities. Thanks to its position as a key global transportation hub and ongoing government investments in infrastructure and digital transformation, Singapore’s logistics industry is expected to grow steadily in the coming years.

In the latest quarterly OCBC SME Index, which tracks the performance of SMEs in Singapore, the score for the transportation and logistics sector rose from 50.6 in the second quarter to 51.2 in the third quarter. Dave Ng, President of the Singapore Logistics Association, believes that the “strong performance” of the logistics sector over the past three months has been driven by the overall health of the economy.

The growth potential of Singapore’s logistics sector is primarily reflected in its advantages in shipping and air transport. As one of the world’s key transshipment ports, Singapore’s port has long played an important role in container transport and cargo transshipment. With well-developed port facilities and efficient operational management, Singapore’s port continues to maintain a leading position in the global shipping network. As global trade recovers and demand rises, the throughput at Singapore’s port has been on the rise, providing strong support for the local logistics industry.

Similarly, as a major global air transport hub, Singapore’s Changi Airport also holds a competitive advantage in freight. Changi is one of the busiest cargo airports in the world, with advanced freight facilities and efficient customs clearance systems. In recent years, Changi Airport has continuously upgraded its infrastructure, enhancing its cargo handling capacity, further solidifying its position in the global air cargo logistics network. With the recovery of air freight demand, Changi’s cargo volume has also been increasing, driving the development of Singapore’s logistics industry.

The Singapore government’s policies also create favorable conditions for the development of the logistics sector. Through measures such as tax cuts, subsidies, and infrastructure development, the government has been promoting the growth of the logistics industry. Additionally, Singapore’s investment in digital transformation for logistics has provided companies with technical support and financial assistance, helping businesses improve operational efficiency and reduce costs. Government support plays a key role in helping Singapore’s logistics industry maintain its core position in the global supply chain.

Furthermore, Singapore is leveraging corporate restructuring of supply chains to reduce geopolitical risks. Prime Minister Heng Swee Keat stated that the extensive free trade agreements and cooperative networks established with neighboring countries have attracted multinational companies. These companies are establishing “dual hubs,” optimizing costs by setting up production bases in lower-cost countries while using Singapore’s advanced logistics infrastructure for their logistics facilities.

As regional integration accelerates, Singapore’s role as a logistics hub in Southeast Asia and the Asia-Pacific region has become increasingly prominent. In recent years, free trade agreements such as the Regional Comprehensive Economic Partnership (RCEP) have promoted the growth of cross-border trade in the region. With its advanced logistics facilities and efficient supply chain services, Singapore has become a key node in the regional supply chain. Leveraging this advantage, Singapore has attracted numerous multinational companies and international logistics firms to establish branches locally, further boosting the development of its logistics industry.