Shoppers Rush to Beat 2024 GST Hike, Driving Growth in E-Commerce Sales
In anticipation of a Goods and Services Tax (GST) hike in 2024, Singapore shoppers have contributed to a boost in Singles’ Day sales, although consumer spending varied across different product categories. Shopee Singapore reported record-breaking results during this year’s 11.11 sale, with a global gross merchandise value (GMV) of US$1 billion achieved in just a single day.
Shopee saw a 40% year-on-year growth in sales for travel-related items, reflecting an increase in demand as Singaporeans prepare to travel abroad. This surge in e-commerce sales comes amidst efforts by consumers to make purchases before the GST increase takes effect in the coming year.
Despite the overall increase in sales, consumer spending remained uneven across different sectors. However, the rise in demand for travel-related products signals a shift in consumer priorities, driven by the upcoming tax hike and a growing desire to book trips.
