Essential Guide to the Logistics Industry in Singapore

Overview of the Logistics Industry in Singapore

Singapore’s logistics industry is a critical driver of the country’s economy, contributing significantly to its global trade and competitiveness. The industry is well-established and highly sophisticated, with a vital innovation and efficiency track record. Singapore is consistently ranked as one of the top logistics hubs in the world, and it is home to many multinational logistics companies.

Key characteristics of the Singapore logistics industry:

  • Strategic location: Singapore is strategically located at the crossroads of major shipping lanes, making it an ideal hub for global trade. The country has excellent connectivity to the rest of Asia and beyond, with a well-developed network of air and seaports and efficient land transportation infrastructure.

  • World-class infrastructure: Singapore boasts world-class infrastructure that supports its logistics industry. This includes modern ports, airports, warehouses, and advanced information and communications technology (ICT) systems.

  • Strong government support: The Singapore government has long recognized the importance of the logistics industry to the country’s economy. It has implemented several policies and initiatives to support the sector, including providing financial incentives and promoting innovation.

  • Skilled workforce: Singapore has a skilled workforce that can support the needs of the logistics industry. This includes workers with expertise in supply chain management, logistics operations, and freight forwarding.


The logistics industry in Singapore generated an estimated $61.77 billion in revenue in 2022. This is expected to grow to $84.7 billion by 2028 at a compound annual growth rate (CAGR) of 4.32%.


The logistics industry in Singapore employs over 200,000 people. This represents about 5.2% of the total workforce. The industry is expected to grow in the coming years, creating new job opportunities.

Contribution to GDP:

The logistics industry contributes about 5% to Singapore’s GDP. This makes it one of the most critical sectors in the economy.

Key segments of the Singapore logistics industry:

  • Freight forwarding: Freight forwarders play a crucial role in coordinating the movement of goods through the global supply chain. They provide many services, including arranging transportation, customs clearance, and cargo insurance.

  • Contract logistics: Contract logistics providers offer a comprehensive suite of services to manage the entire logistics process, from warehousing and distribution to order fulfilment and returns management. This allows businesses to focus on their core competencies and outsource logistics needs.

  • Land transportation: Land transportation is a vital component of the logistics industry. Singapore has a well-developed network of roads, railways, and public transportation systems that support the movement of goods and people.

Key players in the logistics industry in Singapore:

  • Multinational logistics companies: Singapore is home to many of the world’s leading logistics companies, including DHL, Kuehne + Nagel, and Nippon Express.
  • Local logistics companies: There are also many local solid logistics companies in Singapore, such as CWT Logistics, Kerry Logistics, and TransAsia.
  • Government agencies: The Singapore government actively supports the logistics industry through initiatives such as the Logistics Industry Transformation Map and the Logistics Innovation Program.

Challenges facing the logistics industry in Singapore:

  • Rising labour costs: Labor costs in Singapore are relatively high, which can pressure logistics companies’ margins.
  • Land constraints: Singapore is a small country, and land constraints can make it difficult for logistics companies to expand their operations.
  • Competition from other logistics hubs: Singapore faces competition from other logistics hubs in Southeast Asia, such as Hong Kong and Malaysia.

Future trends of the Singapore logistics industry:

  • Digitalization: The logistics industry is undergoing rapid digitalisation, adopting new technologies such as automation, artificial intelligence, and data analytics. These technologies are helping to improve efficiency, reduce costs, and enhance customer service.

  • Sustainability: The logistics industry is also becoming increasingly focused on sustainability, focusing on reducing its environmental impact. This is being driven by factors such as rising fuel costs and stricter environmental regulations.

  • E-commerce: The growth of e-commerce is having a significant impact on the logistics industry. This leads to increased demand for last-mile delivery services and new logistics solutions for e-commerce fulfilment.

The Singapore logistics industry is well-positioned for continued growth and success in the future. The industry benefits from strong fundamentals, such as its strategic location, world-class infrastructure, and skilled workforce. In addition, the industry is adapting to emerging trends such as digitalization and sustainability, which will help it to remain competitive in the global marketplace.

Why Singapore is Good for Logistics

Singapore is an excellent location for logistics. It consistently ranks among the top logistics hubs in the world, and it offers a wide range of advantages for businesses involved in the movement of goods.

Here are some of the reasons why Singapore is a good place for logistics:

  • Strategic location: Singapore is located at the heart of Southeast Asia, a region with a rapidly growing economy. The country is also well-connected to other major markets in Asia, Europe, and the Middle East.
  • World-class infrastructure: Singapore has a world-class infrastructure that supports efficient and reliable logistics operations. This includes a modern, efficient port, a well-developed transportation network, and advanced logistics facilities.
  • Pro-business environment: Singapore has a pro-business environment with a supportive government, low taxes, and a strong rule of law. This makes it an attractive location for businesses of all sizes.
  • Skilled workforce: Singapore has a qualified and experienced workforce in the logistics industry. This includes a pool of engineers, technicians, and logistics professionals.
  • Focus on innovation: Singapore is a global innovation leader, which is reflected in the logistics industry. The country is home to many companies developing new technologies to improve logistics efficiency and productivity.

Here are some of the specific benefits of using Singapore for logistics:

  • Reduced costs: Singapore’s efficient infrastructure and pro-business environment can help businesses reduce logistics costs.
  • Improved efficiency: Singapore’s focus on innovation can help businesses improve logistics efficiency.
  • Increased visibility: Singapore’s advanced logistics technologies can help businesses increase their visibility into their supply chains.
  • Enhanced security: Singapore’s strong rule of law and focus on security can help businesses protect their goods from theft and damage.

Overall, Singapore is an excellent location for logistics. Its strategic location, world-class infrastructure, pro-business environment, skilled workforce, and focus on innovation make it attractive for businesses of all sizes.

Singapore’s Rank in Logistics

Singapore is consistently ranked among the top logistics hubs in the world. In the 2023 Logistics Performance Index (LPI) published by the World Bank, Singapore ranked first out of 168 countries. This marks the 13th consecutive year that Singapore has been ranked in the top three of the LPI.

The LPI is a comprehensive measure of a country’s logistics performance based on six critical criteria:

  • Customs: Reflects the efficiency and transparency of border clearance procedures.
  • Infrastructure: Assesses the quality of a country’s transport infrastructure, including roads, railways, and ports.
  • International shipments: Measures the ease of arranging and sending international shipments.
  • Logistics competence: Evaluates the skills and knowledge of the logistics sector workforce.
  • Tracking and tracing: Assesses the ability to track shipments throughout the supply chain.
  • Timeliness: Measures the average time required to complete logistics processes.

Singapore’s strong performance in the LPI is attributed to several factors, including its world-class infrastructure, efficient customs procedures, and skilled logistics workforce. The country is also home to many multinational logistics companies, which have invested heavily in developing innovative solutions.

Here is a breakdown of Singapore’s ranking in each of the six LPI criteria:

  • Customs: 2nd
  • Infrastructure: 1st
  • International shipments: 2nd
  • Logistics competence: 1st
  • Tracking and tracing: 1st
  • Timeliness: 1st

Singapore’s top ranking in the LPI is a testament to the country’s commitment to developing a world-class logistics sector. The government has implemented several initiatives to support the growth of the logistics industry, including the Logistics Industry Transformation Map and the Logistics Innovation Program.

As a result of these initiatives, Singapore is well-positioned to continue to be a leading global logistics hub in the years to come.

How Many Logistics Companies Are There in Singapore

According to the Singapore Logistics Association (SLA), over 12,000 logistics companies operate in Singapore. The industry employs over 200,000 people and contributes significantly to the country’s GDP. Most logistics companies in Singapore are small and medium-sized enterprises (SMEs), with around 95% of companies having fewer than 50 employees.

The logistics industry in Singapore is a diverse and dynamic sector, with companies providing a wide range of services, including freight forwarding, warehousing, distribution, and supply chain management. The industry is also undergoing rapid digitalization, adopting new technologies such as artificial intelligence, robotics, and blockchain.