Wed, 29 Jul 2015
Economies across Southeast Asia have endured weaker growth this year. But one sector is powering ahead nevertheless: ecommerce.

A surge in internet penetration has encouraged a raft of start-ups across the region. In Indonesia, for example, the number of internet users has risen by 150 per cent a year over the past decade to reach 90m. The government has set a target of 150m by 2019.

International information technology players have been piling in.

Japanese telecoms group Softbank has made a string of acquisitions across Asia. It invested $250m in the region’s ride-hailing app GrabTaxi at the end of last year. In Indonesia, it invested $100m in online marketplace Tokopedia and mobile device retailer Trikomsel.

Singaporean blue-chip companies such as Singapore Press Holdings and MediaCorp, the latter controlled by Temasek Holdings, Singapore’s government-controlled investment company, have also been involved in a raft of deals.

This month, Temasek said it would partner with United Overseas Bank to set up a venture and debt financing fund of nearly $500m to help finance the growth of ecommerce and other technology and healthcare initiatives around the region.

Online sales account for only 1 to 2 per cent of total retail sales in many southeast Asian countries, providing ample scope for the kind of breakneck growth that online trade has enjoyed in China — where ecommerce now accounts for 11 per cent of total retail sales, up from 2.5 per cent just five years ago, according to estimates by FT Confidential Research, a Financial Times research service.

But ecommerce operations in Southeast Asia are often hindered by factors such as high logistics costs and the limitations of online payment systems. In Indonesia, more than 95 per cent of ecommerce transactions are settled in cash on delivery, and more than 90 per cent of visits to ecommerce sites do not result in sales.

Nevertheless, online retailers Lazada and Zalora, both owned by German tech investor Rocket Internet, have built up robust online sales across the region. They have tackled logistical constraints by investing heavily in their own in-house logistics and supply chain providers.

Chinese ecommerce giant Alibaba, meanwhile, is expanding its international ecommerce site AliExpress across the Asean region. It recently acquired a 14.5 per cent stake in Singapore Post, which last year announced plans to spend $145m on a regional ecommerce logistics hub. Its rivals in the logistics sector include Singapore-based aCommerce, which is backed by Japan’s NTT Docomo.

A number of pan-Asean online payment systems are in the process of being established, meanwhile, such as 2C2p and Coda Payments.

As ecommerce expands, consolidation is set to follow. Many domestic start-ups have focused excessively on building initial sales volume at the expense of profitability. At some point soon, a shake-out appears inevitable.





News Search/Filter
Transaction Rates
19 Nov 18
Buy
Sell
AED1
3,979.23
3,979.23
AFN1
228.67
228.67
ALL1
134.03
134.03
AMD1
30.37
30.37
ANG1
8,300.32
8,300.32
AOA1
47.10
47.10
ARS1
408.50
408.50
AUD1
10,695.16
10,695.16
AWG1
8,117.57
8,117.57
AZN1
8,584.87
8,584.87
BAM1
8,534.53
8,534.53
BBD1
7,307.87
7,307.87
BDT1
175.85
175.85
BGN1
8,534.22
8,534.22
BHD1
39,018.91
39,018.91
BIF1
8.21
8.21
BMD1
14,615.74
14,615.74
BND1
10,703.46
10,703.46
BOB1
2,132.07
2,132.07
BRL1
3,903.78
3,903.78
BSD1
14,615.74
14,615.74
BTC1
80,716,019
80,716,019
BTN1
204.93
204.93
BWP1
1,378.95
1,378.95
BYN1
6,973.30
6,973.30
BZD1
7,309.13
7,309.13
CAD1
11,116.60
11,116.60
CDF1
9.01
9.01
CHF1
14,623.49
14,623.49
CLF1
625,138.79
625,138.79
CLP1
21.79
21.79
CNH1
2,109.63
2,109.63
CNY1
2,106.62
2,106.62
COP1
4.61
4.61
CRC1
24.27
24.27
CUC1
14,615.74
14,615.74
CUP1
567.60
567.60
CVE1
150.54
150.54
CZK1
641.93
641.93
DJF1
82.11
82.11
DKK1
2,235.68
2,235.68
DOP1
292.81
292.81
DZD1
123.89
123.89
EGP1
822.14
822.14
ERN1
974.42
974.42
ETB1
526.32
526.32
EUR1
16,683.13
16,683.13
FJD1
6,926.96
6,926.96
FKP1
18,759.29
18,759.29
GBP1
18,759.29
18,759.29
GEL1
5,972.94
5,972.94
GGP1
18,759.29
18,759.29
GHS1
3,050.43
3,050.43
GIP1
18,759.29
18,759.29
GMD1
294.50
294.50
GNF1
1.61
1.61
GTQ1
1,909.63
1,909.63
GYD1
70.44
70.44
HKD1
1,866.51
1,866.51
HNL1
607.34
607.34
HRK1
2,246.54
2,246.54
HTG1
203.20
203.20
HUF1
51.85
51.85
IDR1
1.00
1.00
ILS1
3,944.80
3,944.80
IMP1
18,759.29
18,759.29
INR1
203.60
203.60
IQD1
12.33
12.33
IRR1
0.34
0.34
ISK1
118.64
118.64
JEP1
18,759.29
18,759.29
JMD1
116.98
116.98
JOD1
20,599.97
20,599.97
JPY1
129.65
129.65
KES1
142.35
142.35
KGS1
212.73
212.73
KHR1
3.64
3.64
KMF1
33.86
33.86
KPW1
16.23
16.23
KRW1
13.03
13.03
KWD1
48,189.22
48,189.22
KYD1
17,678.46
17,678.46
KZT1
39.85
39.85
LAK1
1.72
1.72
LBP1
9.72
9.72
LKR1
83.35
83.35
LRD1
92.43
92.43
LSL1
1,040.77
1,040.77
LYD1
10,524.29
10,524.29
MAD1
1,541.95
1,541.95
MDL1
859.57
859.57
MGA1
4.05
4.05
MKD1
271.14
271.14
MMK1
9.19
9.19
MNT1
5.87
5.87
MOP1
1,826.28
1,826.28
MRO1
40.94
40.94
MRU1
399.01
399.01
MUR1
421.93
421.93
MVR1
945.39
945.39
MWK1
20.17
20.17
MXN1
725.55
725.55
MYR1
3,486.14
3,486.14
MZN1
240.76
240.76
NAD1
1,031.59
1,031.59
NGN1
40.35
40.35
NIO1
455.06
455.06
NOK1
1,733.00
1,733.00
NPR1
128.08
128.08
NZD1
10,028.56
10,028.56
OMR1
37,968.00
37,968.00
PAB1
14,615.74
14,615.74
PEN1
4,349.51
4,349.51
PGK1
4,367.59
4,367.59
PHP1
277.88
277.88
PKR1
109.48
109.48
PLN1
3,866.59
3,866.59
PYG1
2.48
2.48
QAR1
4,020.64
4,020.64
RON1
3,571.59
3,571.59
RSD1
141.16
141.16
RUB1
221.34
221.34
RWF1
16.56
16.56
SAR1
3,895.35
3,895.35
SBD1
1,825.92
1,825.92
SCR1
1,069.28
1,069.28
SDG1
308.69
308.69
SEK1
1,622.68
1,622.68
SGD1
10,643.91
10,643.91
SHP1
18,759.29
18,759.29
SLL1
1.74
1.74
SOS1
25.36
25.36
SRD1
1,959.74
1,959.74
SSP1
112.20
112.20
STD1
0.69
0.69
STN1
675.09
675.09
SVC1
1,683.65
1,683.65
SYP1
28.37
28.37
SZL1
1,035.99
1,035.99
THB1
444.74
444.74
TJS1
1,563.51
1,563.51
TMT1
4,164.05
4,164.05
TND1
5,055.58
5,055.58
TOP1
6,379.51
6,379.51
TRY1
2,737.87
2,737.87
TTD1
2,185.84
2,185.84
TWD1
474.76
474.76
TZS1
6.35
6.35
UAH1
530.72
530.72
UGX1
3.94
3.94
USD1
14,615.74
14,615.74
UYU1
449.04
449.04
UZS1
1.77
1.77
VEF1
0.05
0.05
VND1
0.63
0.63
VUV1
132.07
132.07
WST1
5,596.80
5,596.80
XAF1
25.43
25.43
XAG1
210,714.79
210,714.79
XAU1
17,869,843.50
17,869,843.50
XCD1
5,407.93
5,407.93
XDR1
20,303.90
20,303.90
XOF1
25.43
25.43
XPD1
17,267,721.69
17,267,721.69
XPF1
139.80
139.80
XPT1
12,364,743.45
12,364,743.45
YER1
58.37
58.37
ZAR1
1,045.00
1,045.00
ZMW1
1,243.79
1,243.79
ZWL1
45.34
45.34
Taxation Exchange Rates
31 Aug 16 - 06 Sep 16
USD 1
13,232.00
AUD 1
10,043.30
CAD 1
10,213.70
DKK 1
1,999.40
HKD 1
1,706.22
MYR 1
3,283.28
NZD 1
9,623.63
NOK 1
1,605.23
GBP 1
17,433.70
SGD 1
9,757.68
SEK 1
1,569.45
CHF 1
13,631.10
JPY 100
13,101.00
MMK 1
11.01
INR 1
197.29
KWD 1
43,920.70
PKR 1
126.23
PHP 1
285.00
SAR 1
3,528.53
LKR 1
91.12
THB 1
382.08
BND 1
9,756.53
EUR 1
14,885.50
CNY 1
1,987.61

Okusi Associates: Indonesian Business & Management Services