Singapore is slowly emerging as a global e-commerce hub. According to statistics that I found online, the revenue from online business in Singapore is rising by 400 million USD each year.
In 2014, this figure was 3044 million USD, which has risen to 3994 million USD in 2016. It is further expected that the percentage of the e-commerce users to cross from 57.31% in 2015 to 74.20% by 2020.
There are a number of factors fueling these numbers and motivating enthusiasts to set up online businesses in Singapore. So, we all should do online business as part of our extra income or best to achieve financial freedom because…
Job competition is high
As the number of people aspire for higher studies and lucrative packages increases, the job competition is becoming quite stiff. The number of degree holders in growing steadily even as the percentage of residents aged 25-34 years has increased to 51.1 % in 2013 from 26.1 % in 2000 according to Singapore’s department of statistics.
This can be attributed to the changing business landscape of the country. Companies are outsourcing low-added value roles and thereby looking onto reducing their costs.
Moreover, the graduates often look for selective work with more than just monetary benefits from the industry.
In such scenarios, a self-owned and operating online business can provide people an opportunity to set their own milestones, which when achieved, it can provide them with both monetary and professional satisfaction. 😀
Singapore is the world’s most expensive city
A Worldwide Cost of Living survey by the Economist Intelligence Unit (EIU) ranked Singapore as the world’s most expensive city to live in. Car ownership is the most expensive in the world here which escalates the transportation costs.
In terms of utilities and retail costs, Singapore ranked third in the world. It was also called “the priciest city to buy clothes”. Such situation makes it impossible for middle-class employees to invest in luxuries such a car.
Having an online business can provide one with an opportunity to make money to supplement their income. Once they are well equipped with the acumen of running an online business, they can even plan on quitting their 9-5 job.
So that we are able to pay off our housing loan early
Another dream that probably everyone of us has is that of owning one’s own home. There are many banks that offer to help you by providing housing loans.
However, most people who bought HDB flat will normally opt for HDB housing loan. Whether you opt for whichever housing loan, you still got to pay your house through your CPF ordinary account every month for about 25 years at most which will probably affect your retirement.
The situation especially becomes terse if you have a large family to provide for. The interest rates for housing loans have been rising since 2016. In April 2015, the average housing loan rate was 3.1%. This quickly rose to 3.39% just a year later.
Extra income from the online business can bring you closer to your dream home and allow you to pay off your housing loans faster, without having to compromise the quality of your everyday living and more importantly is able to retire on time.
Singapore’s education is expensive
Education is yet another domain where costs are anything but getting any less. According to a research of the Singapore branch of ValuePenguin, the annual cost for an art or a science degree was about $7000 in 2007 which rose to $11000 in 2016, a whopping 51% hike.
A business degree that cost about $6000 in 2009 has rocketed to about $9000 in 2016, an increase of 53%. The highest hike was the cost of a law college degree. The cost of a law degree rose from $6100 in 2009 to $12400 in 2016.
Also, data from CNBC news reveals that the expense of the education of each student has dented a large part of a Singaporean’s income.
If you are a parent that have to support two to three kids for their education or if you are a student working part-time trying to pay off your college loans, doing an online business for extra income will be a huge relief for you.
Related article: How to master the art of saving money as a student in Singapore?
So that we are able to retire on time or earlier
Household expenses, an education, a car or even one’s own apartment may all be immediate needs but what about the needs of the future? So apart from managing the above expenses, you also need to start planning for your retirement.
Retirement brings its own problems apart from old age. Moreover, Singapore’s lifestyle is getting more and more expensive. If you are only depends on monthly savings, you may not have enough for retirement.
You need to save more than your calculated expenditure because inflation is reducing the value of your money day-by-day. Your investments should race ahead of inflation by at least a two percent margin. Even if you want to do investment, you will need more money to get more returns to retire early.
We will still have income when we retire
During your retirement stage, your immediate retirement expenses will also increase as every day will be your week off. It means that you do not have any monthly income at all.
Considering this and all the above-listed factors in mind, setting up an online business early before you retire will probably be better for your backup plan.
E-commerce is a booming market even as the number of people buying online is increasing day by day. Thus, in the wake of the hour, an online business may be the best possible solution to all of your financial constraints.
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Have a great day!