As the fifth-largest economy globally, Southeast Asia presents an appealing market for exporters. Despite the pandemic’s impact on trade in the region, the e-commerce sector is thriving. Valued at USD62 billion in 2020, it is projected to reach USD172 billion by 2025. In 2020, new shoppers accounted for over a third of online commerce, with 8 out of 10 planning to continue shopping online post-pandemic.
While Southeast Asia comprises more than a dozen countries, Indonesia, Malaysia, and Singapore stand out as promising markets for exporters. Indonesia is the largest market in the region, while Malaysia and Singapore offer low entry barriers and serve as convenient hubs for reaching neighboring countries. Additionally, English proficiency is widespread in Malaysia and Singapore, and both countries boast well-developed infrastructures.
Focusing on Singapore, let’s delve deeper into its economic landscape, the pandemic’s effects, emerging shopper behaviors, and effective strategies for export to Singapore.
Singapore Export Market Overview
Singapore, a thriving and densely populated commercial hub, boasts a robust economy with a GDP of USD372.063 billion1 in 2019, positioning it as the fifth-largest economy in Southeast Asia. With a population of 5.7 million2 individuals and a wide range of global connections, Singapore presents itself as an appealing and easily accessible destination for businesses seeking expansion opportunities, particularly through cross-border e-commerce.
The current internet penetration rate in the country stands at 88%, with an additional 95% of users accessing the internet through their smartphones. Singapore, known for its high level of urbanization and compact size (approximately 300 times smaller than London), boasts nationwide coverage for eCommerce delivery services. In 2019, the value of its eCommerce market reached USD2.32 billion. However, due to the lockdown measures and travel restrictions imposed in 2020, consumers were compelled to shift towards online shopping, which undoubtedly led to a significant growth in the eCommerce market.
Customs and Import Regulations for Exporting to Singapore
Singapore is a key trading hub and two‑thirds of its GDP is derived from external demand. Developing and strengthening international ties is therefore a focus of the Singaporean government, with deepening and diversifying international connections one of the seven economic strategies of Singapore (see Report of the Committee on Future Economy: Pioneers of the Next Generation (2017)).
Singapore already has had 20 regional and bilateral FTAs with 31 trading partners, covering the majority of its trade.
• Six regional FTAs signed under the auspices of ASEAN with six countries individually, including China, Japan, Korea, India, Australia and New Zealand
• Three regional FTAs with EFTA and GCC and Trans-Pacific Strategic Economic Partnership
• 11 bilateral FTAs with China, the US, India, Japan, Korea, New Zealand, Panama, Peru, Australia, Costa Rica and Jordan
Singapore Customs, under the MOF, is the lead agency for trade facilitation. Imports and exports are regulated under the Customs Act, Regulation of Imports and Exports Act and other legislation by the relevant authorities (e.g. tax legislation). See the Acts and Subsidiary Legislation webpage on the Singapore Customs website. If you want export to Singapore, you need to understand this following regulations:
Singapore Customs applies an 8% tax on all shipments. This is known as ‘GST’ (Goods and Services Tax). Some goods also incur duty — see the below section for more on this. GST is set to rise to 9% in 2024.
Before your business can start to import and export goods to Singapore, you need to obtain a UEN number by registering with Singapore Customs.
All goods imported into Singapore are regulated under the Customs Act, the Goods and Services Tax (GST) Act and the Regulation of Imports and Exports Act.
Regardless of the bulk of your shipment, all your parcels must have the necessary paperwork. You can find out exactly what paperwork is required for shipping to Singapore in this useful guide.
Once the paperwork is processed by Singapore Customs, it is then submitted to AsiaCommerce network where our certified international specialists process the shipment, without it being physically present in Singapore.
Most shipments are successfully cleared once they are boarded enroute to Singapore. Import customs clearance processes are simple and are mandated by the local government.
The submission of an import declaration and payment of duty/GST to Singapore Customs is performed electronically. Business entities are encouraged to register for an Inter-Bank payment account with Singapore Customs to make this payment easier. For non-business entities, AsiaCommerce can undertake the payments of duty/tax on their behalf (subject to terms and conditions) and recover the amount upon shipment delivery.
Challenges When Export to Singapore
Exporting to Singapore offers a lot opportunities due to its strategic location and vibrant economy. However, exporters may face several challenges that need to be navigated effectively. Here are the challenges and some tips on how to address them:
1. Stringent Regulatory Requirements
Singapore has strict regulations to ensure the quality and safety of imported goods. These regulations can be complex and vary by product type.
Solution: Familiarize yourself with the Singapore Customs requirements and the specific regulations related to your product. Engage with regulatory consultants or local experts to ensure compliance. Utilize resources from the Singapore government, such as the Enterprise Singapore and the Singapore Food Agency, for guidance on regulatory standards.
2. High Competition
Singapore’s market is highly competitive with numerous international brands vying for market share.
Solution: Conduct thorough market research to understand the competitive landscape. Identify your unique selling proposition (USP) and focus on differentiation strategies. Engage in targeted marketing campaigns that highlight your product’s unique features and benefits.
3. Cost of Doing Business
The cost of doing business in Singapore can be high, including expenses related to warehousing, labor, and logistics.
Solution: Optimize your supply chain to reduce costs. Consider partnering with local distributors who can help manage warehousing and distribution more efficiently. Explore government grants and incentives aimed at reducing business costs for exporters.
4. Cultural and Market Differences
Understanding and adapting to local consumer preferences and business etiquette is crucial for success.
Solution: Invest in market research to gain insights into consumer behavior and preferences in Singapore. Consider localizing your products and marketing messages to better resonate with Singaporean consumers. Engage with local partners or hire local staff who can bridge cultural gaps and provide valuable market insights.
5. Logistical Challenges
While Singapore has excellent infrastructure, logistics can still pose challenges, especially for perishable goods or products requiring special handling.
Solution: Work with reliable logistics partners experienced in handling the specific requirements of your products. Ensure proper documentation and compliance with Singapore’s import procedures to avoid delays. Use advanced logistics technologies to track shipments and manage inventory effectively.
6. Trade Barriers and Tariffs
Though Singapore is known for its low tariffs, certain products might still face trade barriers or specific import duties.
Solution: Check the tariff rates and trade barriers for your products on the Singapore Customs website. Take advantage of Free Trade Agreements (FTAs) that Singapore has with various countries to reduce tariffs. Consult with trade experts to navigate any potential trade barriers.
7. Intellectual Property Protection
Protecting intellectual property (IP) rights is critical, given the risk of counterfeiting and infringement.
Solution: Register your trademarks, patents, and copyrights with the Intellectual Property Office of Singapore (IPOS). Monitor the market for potential IP infringements and take legal action if necessary. Educate your local partners and distributors about the importance of protecting your IP.
8. Currency Fluctuations
Currency fluctuations can impact pricing and profitability.
Solution: Use financial instruments such as forward contracts and options to hedge against currency risk. Regularly monitor exchange rates and adjust pricing strategies accordingly. Work with financial advisors to develop a robust currency risk management strategy.
Sucessful Tips Export to Singapore
Exporting to Singapore can be highly rewarding due to its strategic location, advanced infrastructure, and pro-business environment. To maximize your success, consider the following tips:
1. Understand Market Demand
Before exporting, thoroughly research the Singaporean market to understand the demand for your products. Identify market trends, consumer preferences, and potential competitors.
Action: Utilize market research reports, industry analyses, and consumer surveys. Engage with local market research firms if needed.
2. Comply with Regulatory Requirements
Singapore has strict import regulations to ensure product quality and safety. Ensure your products comply with all local standards and regulations.
Action: Visit the Singapore Customs and Enterprise Singapore websites to understand the specific requirements for your products. Consider consulting with regulatory experts or local agencies.
3. Leverage Free Trade Agreements (FTAs)
Singapore has numerous FTAs with countries around the world, which can reduce tariffs and make your products more competitive.
Action: Identify which FTAs apply to your country and products. Ensure proper documentation to take advantage of reduced tariffs.
4. Build Strong Relationships with Local Partners
Establishing relationships with local distributors, agents, or partners can significantly enhance your market entry and distribution capabilities.
Action: Attend trade shows, business forums, and networking events to meet potential partners. Consider joining business associations like the Singapore Business Federation.
5. Optimize Logistics and Supply Chain
Efficient logistics and supply chain management are crucial for timely delivery and cost-effectiveness.
Action: Work with reputable logistics companies familiar with the Singaporean market. Utilize Singapore’s excellent port facilities and consider warehousing options for faster distribution.
6. Adapt to Local Preferences
Customize your products and marketing strategies to meet local tastes and preferences. This may involve modifying product features, packaging, or branding.
Action: Conduct focus groups and market testing in Singapore. Collaborate with local marketing firms to tailor your branding and advertising strategies.
7. Ensure Intellectual Property Protection
Protecting your intellectual property (IP) is crucial to prevent counterfeiting and ensure brand integrity.
Action: Register your trademarks, patents, and copyrights with the Intellectual Property Office of Singapore (IPOS). Monitor the market for potential infringements and take legal action if necessary.
8. Utilize Digital Marketing
Singapore has a high internet penetration rate, making digital marketing a powerful tool for reaching consumers.
Action: Develop a robust online presence through websites, social media, and e-commerce platforms. Invest in search engine optimization (SEO) and online advertising to increase visibility.
9. Understand and Mitigate Risks
Be aware of the financial, legal, and operational risks involved in exporting to Singapore and develop strategies to mitigate them.
Action: Use financial instruments to hedge against currency fluctuations. Obtain export insurance to protect against non-payment or political risks. Ensure compliance with all legal requirements to avoid penalties.
10. Leverage Government Support
Both Singapore and many exporting countries offer various forms of government support to help businesses succeed in international markets.
Action: Explore grants, loans, and advisory services offered by agencies like Enterprise Singapore. In your home country, seek out export assistance programs from government trade agencies.
11. Focus on Sustainability
Singapore places a strong emphasis on sustainability and environmental responsibility. Highlighting your commitment to these values can enhance your brand’s appeal.
Action: Implement sustainable practices in your production and supply chain. Highlight these efforts in your marketing materials to appeal to environmentally conscious consumers.
12. Attend Trade Shows and Expos
Participating in trade shows and expos can help you showcase your products, meet potential buyers, and learn about market trends.
Action: Identify relevant trade shows and expos in Singapore. Prepare thoroughly with attractive displays, marketing materials, and knowledgeable staff to engage with attendees.
Export to Singapore with AsiaCommerce Export Solution
AsiaCommerce is a procurement company that provides several services such as comprehensive market research, arranging partnerships in local industry, and creating sales programs based on market research.
Our Market Insight Research, Business Partnership Engagement, and Business Registration and Establishment services can help you expand and develop your business, register and establish your products and company.
Our strategy consulting services domain focuses on supporting private sector clients with comprehensive and specialized development regarding the company’s needs and also on the public sector for a broader scope.If you’re interested in exploring market opportunities in Indonesia, visit our service page for more information. Our team will work with you every step of the way, from finding a supplier, shipping door-to-door, and handling export documents to Singapore.
Malaysia plays a crucial role in trade within Southeast Asia, as a significant portion of its economy relies on imports. The country brings in a variety of products such as machinery, electronics, chemicals, and food. Businesses opportunity for import to Malaysia due to factors like the availability of educated and skilled labor at a lower cost, as well as the opportunity to tap into a market that is rapidly expanding with a population of over 30 million.
The process of importing to Malaysia can be intricate. Gaining a thorough understanding of this process is essential to accurately calculate all associated costs when engaging in price negotiations with international suppliers. Explore further in this article to grasp the essential elements of importing goods for business purposes in Malaysia.
Rules and Regulation Import to Malaysia
DHL.com
When bringing goods into Malaysia, it is essential to have a good grasp of the tax system’s intricacies. There are three primary taxes imposed on import to Malaysia: Import Duty, Sales Tax, and Excise Duty.
This guide will delve into each of these taxes and highlight potential areas where tax exemptions may be granted. Furthermore, we will discuss the advantages of Free Trade Agreements (FTAs), Free Trade Zones (FTZs), and Licensed Manufacturing Warehouses (LMWs), which offer avenues for tax exemptions when importing goods into Malaysia.
1. Import Duty
Import Duty, also referred to as Customs Duty, is a vital tax imposed on goods entering Malaysia from abroad. It is one of the primary taxes levied on imports and plays a fundamental role in regulating international trade. The purpose of Import Duty is to safeguard domestic industries, control the influx of goods, and generate revenue for the government.
The calculation of this tax is based on either the ad valorem basis, which is a percentage of the goods’ value, or the specific basis, which is a fixed amount per unit. The rates of import duty can range from 0% to 60% on an ad valorem basis and can vary for specific goods on a specific basis. These rates are determined by the Malaysian Customs Department and are categorized according to the Harmonized Systems Code (HS Code), which identifies the type of goods.
Certain individuals and goods may qualify for exemptions from import duty, as outlined in the Customs Duties (Exemption) Order 2017. Exemptions can be granted for various reasons, such as promoting specific industries, fulfilling international agreements, or supporting socio-economic development.
Import Duty Rates
Import duty is charged either on an ad valorem basis (as a percentage of the value of the goods) or on a specific basis (as a fixed sum of money per unit). Import duties are calculated as a fixed percentage of the value of the goods, ranging from 0% to 60%. For example, if the rate is 20% and the value is RM 10,000, the duty would be RM 2,000.
HS Code
Description of goods
Rate of Duty
0810.90.20 00
Lychees
30%
1604.31.00 00
Caviar
8%
1704.90.20 00
White chocolate
15%
2103.90.11 00
Chilli sauce
10%
2201.10.10 00
Mineral waters
20%
4818.10.00 00
Toilet paper
25%
6211.43.10 00
Surgical gowns
5%
2. Sales Tax
Sales Tax is a significant component of Malaysia’s import tax structure, ranking second after Import Duty. It operates within the Sales and Service Tax (SST) system and plays a vital role in regulating the importation of goods into the country.
Within the SST system, Sales Tax is divided into two categories: Sales Tax on Taxable Goods and Sales Tax on Low-Value Goods (LVG). Sales Tax on Taxable Goods applies to both imported and domestically manufactured goods that are sold, used, or disposed of within Malaysia. The tax rate varies based on the Harmonized Systems Code (HS code) assigned to the goods, with rates ranging from 10% or 5% to specific rates for certain products.
Additionally, Sales Tax on LVG is specifically imposed on goods sold online with a value not exceeding RM500, which are delivered from overseas to customers in Malaysia. Starting from January 1st, 2024, a fixed rate of 10% will be applied to LVG for online transactions.
Certain goods listed in the Sales Tax (Goods Exempted from Sales Tax) Order 2022 are eligible for exemptions. Moreover, the Sales Tax (Persons Exempted from Payment of Tax) Order 2018 outlines the eligibility criteria for specific individuals and goods to be exempted from the tax.
To calculate the Sales Tax, importers must determine the HS code of the goods and consider the applicable rates for Import Duty, Excise Duty, and Sales Tax. Payment can be made directly at Customs Import Offices or through third-party platforms such as ePayment and eDagangNet.
In Malaysia, sales tax falls under the Sales and Service (SST) system, which was introduced in 2018 to replace Goods and Services Tax (GST). There are two types of sales tax – sales tax on taxable goods and sales tax on low-valye goods (LVG).
Sales Tax on Taxable Goods
Sales Tax on Low-Value Goods (LVG)
Applies to
Taxable goods imported into Malaysia or manufactured domestically and subsequently sold, used, or disposed of
Goods with a sales value of RM500 or below delivered from overseas to customers in Malaysia
Who has to pay
Importer
Buyer
Point of Tax Payment
Upon goods importation
Point of purchase/checkout (at the time when the consumerpurchases the product online)
Rates
10%, 5%, and specified rate
10%
Goods excluded
Goods listed in the Sales Tax (Goods Exempted From Sales Tax) Order 2022
CigarettesTobacco productsIntoxicating liquorsSmoking pipes (including pipe bowls)E-cigarettes and similar vaping devicesE-cigarettes and vaping liquid or gel (whether it contains nicotine or not)
Payment method
Over the Counter (at Customs Import Offices)Third-Party Appointed Platforms
Online marketplace
3. Excise Duty
Excise Duty, as the final tax among the three taxes imposed on imported goods in Malaysia, functions as a regulatory tool aimed at specific products. Unlike Import Duty and Sales Tax, Excise Duty is not imposed on all imports but rather focuses on particular goods.
The rates of Excise Duty vary based on factors such as the goods’ Harmonized Systems Code (HS code) and their specific characteristics. This tax is implemented to ensure effective control and regulation of specific goods entering the country.
Certain individuals and goods may be eligible for exemptions from Excise Duty, as stated in the Excise Duties (Exemption) Order 2013. These exemptions provide relief for qualifying entities, streamlining the import process.
If Excise Duty is applicable, the calculation involves considering the HS code, import duty rate, and the specific excise duty rate applicable to the goods in question. Payments for assessed excise duties can be conveniently made at Customs import offices or through designated third-party platforms.
Goods Subject to Excise Duty
Excise Duty applies to only 7 categories of goods, particularly, motor vehicles, alcoholic beverages, cigarettes, mahjong tiles, playing cards, sugar-sweetened beverages, and premix preparations:
Category
Example
Motor vehicles
ATVs, vans, cars, motorcycles
Alcoholic beverages
Wine, beer, vodka, whiskey
Cigarettes include Tobacco and Cigars
Smoking pipes, cheroots, e-cigarettes, vapes, and their liquid/gel
Mahjong Tiles
Plastic/wood/paper mahjong tiles
Playing Cards
–
Sugar-Sweetened Beverages (SSB)
Fruit juices, coconut water, energy drinks, flavoured milk
Premix preparations (will be effective on 1st March 2024)
2-in-1 instant tea, 3-in-1 coffee mix
Excise Duty Rates
Excise Duty rates are charged either as a percentage of the value of the goods or as a specified sum of money per unit.
HS Code
Description of goods
Rate of Duty
8703.21.42 00
All-Terrain Vehicles (ATV)
65%
8711.20.92 00
Mopeds or motorised bicycles
20%
9504.40.00 00
Playing cards
10%
9504.90.34 00
Mahjong tiles, of wood/paper/plastics
10%
9614.00.90 10
Smoking pipes (including pipe bowls)
10%
4. Free Trade Agreements (FTAs)
Importers in Malaysia can benefit greatly from Free Trade Agreements (FTAs) as they provide tax exemptions and preferential treatment when importing goods. These agreements are crucial in Malaysia’s import tax landscape as they offer advantages that promote international trade and economic growth.
Malaysia has signed a total of 16 FTAs, consisting of 7 bilateral FTAs and 9 multilateral FTAs. These agreements aim to reduce tariffs and introduce measures that are mutually beneficial for the participating countries. By lowering or eliminating customs taxes, FTAs make Malaysian businesses more competitive in the global market.
To take advantage of the tariff preferences offered by FTAs, importers must ensure that their products meet specific criteria. This includes being covered by a specific FTA, complying with the Rules of Origin (ROO) requirements, and having a Certificate of Origin (CO). The ROO criteria may involve being wholly obtained or produced in an ASEAN member country, undergoing a substantial transformation, or containing a certain percentage of ASEAN content.
Importers can qualify for preferential tariff treatment and enjoy tax exemptions by carefully checking the tariff schedules of relevant FTA partners and ensuring compliance with the rules of origin. This allows them to maximize the benefits provided by the FTAs and stay competitive in the market.
Malaysia has signed 16 FTAs, including 7 bilateral FTAs and 9 multilateral FTAs. These agreements provide Malaysian businesses with advantages like lower or zero customs taxes, making them more competitive and contributing to Malaysia’s economic sustainability.
The table below shows the FTAs that Malaysia is participating in according to the country:
Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
Peru
Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
Mexico
Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
5. Free Trade Zones (FTZs) and Licensed Manufacturing Warehouse (LMW)
FTZs and LMWs are specific areas that provide reduced customs supervision and tax exemptions for various goods and services, allowing importers to lower their tax liabilities and enhance the competitiveness of their imports in the Malaysian market.
FTZs are categorized into Free Industrial Zones (FIZs) and Free Commercial Zones (FCZs). FIZs concentrate on manufacturing and exporting goods, while FCZs encourage commercial and trade activities. Businesses within these zones enjoy exemptions from duties and taxes, with certain exceptions for specific goods. This is facilitated by Malaysia’s transportation infrastructure, government support for FTZs, and the cost-effectiveness resulting from low operational and labor costs.
To operate in an FTZ, importers must establish a private limited company, fulfill capital and permit requirements, and register as SMK Dagang Net users with Customs. The Free Zone Authority, under the Ministry of Finance, oversees and regulates FTZs in Malaysia. There are 22 FIZs and 24 FCZs spread across the country, including well-known zones like Port Klang Free Zone and Pasir Gudang.
Problem and Challenges When Import to Malaysia
Focus Malaysia
Importing goods into Malaysia can present a myriad of challenges and problems that businesses must navigate to ensure a smooth and successful operation. Below, we outline some of the primary obstacles encountered and provide insights into addressing them.
1. Regulatory Compliance
Challenge: Malaysia has a complex regulatory environment for imports, involving multiple agencies and extensive documentation.
Solution: Businesses need to familiarize themselves with the specific requirements of the Malaysian Customs Department, as well as any other relevant regulatory bodies. Ensuring compliance with the necessary import licenses, permits, and certificates is crucial. Engaging a local customs broker can also facilitate smoother navigation through regulatory hurdles.
2. Tariffs and Taxes
Challenge: Malaysia imposes various tariffs, duties, and taxes on imported goods, which can significantly impact cost structures.
Solution: Conduct thorough research on the tariff schedules and import duties applicable to your products. Utilize tools like the ASEAN Trade in Goods Agreement (ATIGA) which may offer preferential tariff rates for goods originating from ASEAN countries. Additionally, businesses should be prepared to manage the Goods and Services Tax (GST) implications on imports.
3. Non-Tariff Barriers
Challenge: Importers may face non-tariff barriers such as stringent sanitary and phytosanitary measures, technical standards, and labeling requirements.
Solution: Ensure that products meet Malaysian standards by understanding and adhering to local sanitary, phytosanitary, and technical regulations. Engaging in pre-export testing and certification can prevent delays at the border.
4. Logistical Challenges
Challenge: The logistics of transporting goods into Malaysia, especially for small and medium-sized enterprises (SMEs), can be daunting due to infrastructure limitations, port congestion, and high shipping costs.
Solution: Partner with experienced logistics providers who have a robust understanding of Malaysian ports and transportation networks. Leveraging third-party logistics (3PL) services can streamline the import process and reduce potential delays.
5. Cultural and Language Barriers
Challenge: Understanding and navigating the cultural and linguistic landscape of Malaysia can pose challenges for foreign businesses.
Solution: Building relationships with local partners or hiring bilingual staff can bridge cultural and language gaps. It is also beneficial to invest in cultural training for employees to enhance communication and negotiation effectiveness.
6. Intellectual Property Protection
Challenge: Protecting intellectual property (IP) can be challenging, as counterfeit goods and IP infringement remain issues in Malaysia.
Solution: Register trademarks, patents, and other IP rights with the Malaysian Intellectual Property Corporation (MyIPO). Regular monitoring and legal action against infringement can safeguard your products and brand integrity.
7. Customs Procedures
Challenge: Navigating the customs clearance process can be time-consuming and fraught with bureaucratic hurdles.
Solution: Accurate and complete documentation is essential to avoid delays. Utilizing electronic customs clearance systems and maintaining clear communication with customs officials can expedite the process. Again, partnering with a knowledgeable customs broker can be beneficial.
8. Economic Fluctuations and Exchange Rates
Challenge: Fluctuations in the Malaysian Ringgit and economic instability can impact import costs and profitability.
Solution: Hedging against currency risk through financial instruments can provide stability. Keeping abreast of economic trends and adjusting pricing strategies accordingly can also mitigate financial impacts.
9. Security Concerns
Challenge: Ensuring the security of goods during transit is critical to prevent theft and damage.
Solution: Implement robust security measures including tamper-evident seals, GPS tracking, and secure warehousing solutions. Insurance coverage for goods in transit can also provide financial protection against potential losses.
Start Import to Malaysia with AsiaCommerce
AsiaCommerce is a procurement company that provides several services such as comprehensive market research, arranging partnerships in local industry, and creating sales programs based on market research.
Our Market Insight Research, Business Partnership Engagement, and Business Registration and Establishment services can help you expand and develop your business, register and establish your products and company.
Our strategy consulting services domain focuses on supporting private sector clients with comprehensive and specialized development regarding the company’s needs and also on the public sector for a broader scope.
If you’re interested in exploring market opportunities in Indonesia, visit our service page for more information. Our team will work with you every step of the way, from finding a supplier, shipping door-to-door, and handling import documents to Malaysia.
In line with Singapore’s business-friendly environment, the country’s import and export procedures are relatively efficient and simple, and the necessary permits and licenses are issued relatively quickly.
Singapore is one of Asia’s largest trading hubs and has successfully established important alliances that ply the main shipping route from Asia to Europe in addition to establishing strong feeder networks with smaller regional ports. The Port of Singapore handles over 37.2 million twenty-foot equivalent units (TEUs) of containers and 626.2 million tons of cargo annually, making it one of the world’s busiest.
Moreover, prior to the pandemic, Singapore’s Changi International Airport was the seventh busiest airport for international traffic, handling over seven thousand flights weekly, and over two million tons of cargo.
Guide How to Import to Singapore
As an importer, the company will need to determine if duty or Goods and Sales Tax (GST) payments are required on the products they are importing. Importers should note that:
Duty and/or GST are suspended when goods remain inside free trade zones (FTZ);
Duty and/or GST are payable if goods are released directly for local circulation;
When goods are moved from an FTZ into customs licensed premises (such as zero-GST warehouses or licensed warehouses), duty and/or GST will be suspended as long as the goods are stored in the licensed premises; and
Duty and/or GST is not payable for goods granted GST relief or those imported under the Temporary Import Scheme under
Singapore Customs. This also includes Inland Revenue Authority of Singapore (IRAS) schemes:
The Major Exporter Scheme (MES);
Approved Import GST Suspension Scheme (AISS); and
The Import GST Deferment Scheme (IGDS).
Regulation of Import to Singapore
All goods imported into Singapore are regulated under the Customs Act, the Goods and Services Tax (GST) Act and the Regulation of Imports and Exports Act.
Import Procedures
Imported goods are subject to GST and/or duty payment. A customs permit is required to account for the import and tax payment of the goods. Dutiable goods, which incur both GST and duty, are:
Intoxicating liquors
Tobacco products
Motor vehicles
Petroleum products
Ad valorem or specific duty rates may be applied for dutiable goods.
All other goods are non-dutiable and incur GST only. Prevailing GST rate is levied on the CIF (cost, insurance and freight) value, which includes duties (if it is a dutiable good) and other charges, costs and expenses incidental to the sale and delivery of the goods into Singapore, whether or not shown on the invoice.
Import Requirements
Before the actual importation, the importer is required to obtain a customs permit. The importer is the party who imports the goods into Singapore:
For their own account or use; or
For the account or use of some other person
If an overseas company sold goods to a local company and the commercial invoice indicates the local customer as the consignee, the local customer will be the importer of the goods.
Challenges When Import to Singapore
Singapore is a free port and more than 99% of all imports enter Singapore duty-free. For social and/or environmental reasons, it levies high excise taxes on distilled spirits and wine, tobacco products, motor vehicles, and gasoline. Competition with global suppliers is a key challenge for American companies operating in Singapore. As the nation continues to restructure its economy, U.S. companies doing business in the city-state can expect increased operating costs and a more limited availability of foreign labor resulting from increasing inflation.
U.S. companies face technical import barriers for meat, seafood, and poultry products, and labeling barriers for pre-packaged, non-alcoholic beverages. Services barriers include restrictions on the use of satellite dishes, direct-to-home satellite TV services, paid television subscriptions, and legal, banking, and healthcare services. Despite Singapore’s overall strong record on intellectual property (IP) protection and enforcement, U.S. stakeholders continue to raise concerns regarding weak enforcement against infringing goods transshipped through Singapore and the use of unauthorized streaming services and third-party illicit streaming devices to access pirated content. Details on these trade barriers can be found in the USTR National Trade Estimate Report.
Singapore continues to face challenges associated with demographic and geopolitical issues such as an aging workforce, maturing economy, growing influence of social media, and increasing competition from other trade agreements. Singapore relies heavily on foreign workers, who make up 40 percent of the workforce. Additionally, the surge in commodity prices generated by Russia’s war in Ukraine continues to take a heavy economic toll on Singapore.
Simple Way How to Import to Singapore with AsiaCommerce
AsiaCommerce is a procurement company that provides several services such as comprehensive market research, arranging partnerships in local industry, and creating sales programs based on market research.
Our Market Insight Research, Business Partnership Engagement, and Business Registration and Establishment services can help you expand and develop your business, register and establish your products and company.
Our strategy consulting services domain focuses on supporting private sector clients with comprehensive and specialized development regarding the company’s needs and also on the public sector for a broader scope.
If you’re interested in exploring market opportunities in Indonesia, visit our service page for more information. Our team will work with you every step of the way, from finding a supplier, shipping door-to-door, and handling import documents to ensure your market entry to Indonesia.
Malaysia is a major trading nation in Southeast Asia, with imports accounting for a significant portion of its economy. The country imports a wide range of goods, including machinery, electronics, chemicals, and food.
There are a number of reasons why businesses import goods to Malaysia. More prominent ones include educated, skilled yet low-cost labor to produce goods and access to a rapidly growing market of over 30 million people.
Importing goods into Malaysia can be complex. Learning first-hand knowledge about the importing process will help you factor in all hidden costs when negotiating prices with your overseas supplier. Continue reading this blog to learn key aspects when importing goods for business to Malaysia.
Understanding Import Regulations
Before diving into the importation process, it’s crucial to understand Malaysia’s import regulations. The country has specific laws and requirements governing the importation of goods, which vary depending on factors such as the type of product, its intended use, and the country of origin. Familiarize yourself with Malaysia’s Customs Act 1967 and the Customs (Prohibition of Imports) Order 2017 to ensure compliance with regulations.
There are a number of import and export licensing rules in Malaysia. These rules are designed to safeguard the local economy and security, as well as to ensure the safety of its citizens. The Customs (Prohibition of Import) Order 2017 put absolute prohibition and a conditional prohibition on selected import goods to Malaysia.
Generally, any imported goods sensitive to any religion, or belief in Malaysia are absolutely prohibited.
Certain imported items, including pharmaceutical items, rubber products, intoxicants, wildlife, food & beverage products, etc., require import licensing.
All incoming processed livestock and meat products must be certified halal. Interestingly, any items originating from Israel may also face conditional restrictions. You may refer to the full list here.
How Much are Customs Fees to Import Goods to Malaysia?
Malaysia’s import tax is on an ad-valorem basis. The custom fee that you will need to pay to import goods to Malaysia depends on the value of the goods. Any imported goods to Malaysia attract 5% or 10% or a specific rate depending on the category of goods.
There may be an additional Malaysian Custom Excise import levy on some foods, such as a 15% tax on some drinks. Further, Malaysia’s import taxes and duties on goods already having a significant local production are set at a higher rate to protect local small businesses.
The Malaysian Customs Department has a tariff schedule listing applicable duties and import taxes. You can visit the official website or contact the concerned government department directly to answer yourself how much customs fees are to import goods to Malaysia.
Step-by-Step Process on Importing Goods Into Malaysia
Here’s step by step how to import to Malaysia :
Step 1: Receive a registration
Your first step in importing goods into Malaysia begins with the Companies Commission of Malaysia (SSM). To register, you must provide the following information:
The name of your company
Your business address
Your directors’ and shareholders’ names and addresses
The type of your company (proprietorship, partnership, limited liability)
Step 2: Get an import license (optional)
Not all, but some commodities require an import license. You can visit the Ministry of International Trade and Industry (MITI) website or contact the MITI Trade Licencing Division to see if your items require a license to import goods to Malaysia. You can apply for one via the MITI e-licensing system.
Step 3: Obtain a Customs Import Permit
Once you have obtained an import license, you must get a customs import permit. To do this, you will need to submit the following documents to the Royal Malaysian Customs Department :
Your import license
Commercial invoice
Packing list
Certificate of origin
Commercial invoice
Step 4: Select an overseas supplier
Once you have chosen the products you want to import into Malaysia, you must find a suitable overseas supplier. There are many ways to find suppliers, including online directories, trade shows, and word-of-mouth.
When finding an overseas supplier in Malaysia, there are a few key things to look for.
Reputation: Check the supplier’s reputation online and with other businesses that have worked with them. Additionally, if possible, you can visit their factory and request samples.
Communication: Make sure you can reach the supplier easily and that they respond to your inquiries.
Lead time: Ask the supplier how long it will take to make and deliver your purchase. This is important if you have a tight deadline.
Price: Get quotes from multiple suppliers to ensure you get the best possible price.
Step 5: File documentation for importing goods into Malaysia
For importing goods into Malaysia, the following papers are necessary :
Import declaration form: You may need to file the following customs forms as applicable electronically through the privatized single digital window called Dagang Net to import goods to Malaysia.
Form No.
Description
Customs No.1 (K1)
Declaration of Goods Imported
Customs No.3 (K3)
Permit to Transport Duty Paid Goods Within The Federation
Invoice: It must be in English and include the following information :
Name and address of your overseas supplier
Your business name and address
HS (harmonized system) code of the goods
Value of the goods
Quantity and description of the goods
Terms of payment
Packing list: The list must be in English and include the following information :
Number of packages
Contents of each package
Weight and dimensions of each package
Bill of Lading (BL) or Air Waybill (AWB): The BL or AWB must be original and in English. It must show the carrier’s name, loading port, discharge port, and the date of shipment.
Certificate of origin: It is required for goods that are subject to preferential tariffs. Usually, the Chamber of Commerce or another authorized body in the country of origin issues this certificate.
Import permit – This is required for certain goods, such as food, drugs, and hazardous materials. The relevant government agency must obtain the permit before the goods can be imported.
Other documents :
Phytosanitary certificate for agricultural products
Fumigation certificate for wood products
Veterinary certificate for animal products
Testing certificate for certain goods, such as electrical appliances
It is important to note that the documentation requirements for importing goods into Malaysia can change at any time. It is always advisable to check with the Malaysian Customs Department for the latest information.
Step 6: Evaluate the Costs of Importing Your Goods to Malaysia
Before doing import to Malaysia, evaluate the costs of your imported goods to Malaysia based on the following :
Freight costs: This includes the cost of shipping the goods from the country of origin to Malaysia. The freight cost varies depending on the weight and volume of the goods, the distance they are being shipped, and the mode of transportation used.
Customs duties and taxes: Goods imported into Malaysia are subject to customs duties and taxes. The amount of duty and tax will vary depending on the imported goods type, their value, and the country of origin.
Negotiation with overseas suppliers: You must negotiate a price for importing goods to Malaysia. When negotiating the price, consider the shipping cost, Malaysia import tax, customs fee, and any other expenses.
Brokerage fees: A freight forwarder or customs broker may charge a fee to handle the customs clearance process. The cost varies according to the services offered and how complicated the package is.
Market and sell the goods: Once the goods are in your possession, you can start marketing and selling them. You may have to factor in costs incurred in marketing and selling goods online, including through your own website, e-commerce marketplaces, and social media.
Warehouse the goods: If the goods need to be stored in a warehouse before they are distributed, you must pay for warehousing fees. The fee will vary depending on the time the goods are stored and the size of the warehouse space.
Fulfill orders: When a customer orders a product from you, you will need to fulfill the order. The fulfillment cost will vary depending on the mode of transportation used, shipping distance, shipment size, and other operational expenses.
Step 7: Compare your freight options
Your overseas supplier will determine the freight forwarder for exporting to Malaysia. You may indicate your preference for a particular freight forwarder for importing goods into Malaysia based on the following factors:
Shipping method: There are several shipping methods available, including air freight, sea freight, and express shipping. Each method has its advantages and disadvantages, so it is important to choose the best method for your needs.
Shipping cost: Shipping costs can vary depending on the weight and size of your shipment, as well as the shipping method you choose. The most expensive choice is air freight, while the least expensive is sea freight.
Shipping time: It can vary depending on the shipping method you choose. For instance, air freight is the fastest but the most expensive option. Sea freight is the slowest option but also the most affordable.
Customs clearance: The process of releasing imported goods at Malaysian customs can be time-consuming and costly, so it is important to factor this into your shipping costs.
Step 8: Track your goods
Once you have paid the import duty and Malaysia import taxes, you will need to clear your goods through customs. To do this, you will need to present the following documents to the Customs Department :
Your customs import permit
Copy of the commercial invoice
Copy of the bill of lading
Copy of your import license
Copy of the packing list
Copy of the certificate of origin
Once your goods have been cleared through customs, the shipment is transported from customs to the final destination by your chosen courier provider. You can track your goods with your courier provider.
Tips When Importing to Malaysia
If you wan to start import to Malaysia, you can consider the following factors before choosing products to import :
Demand: Is there a demand for the product in Malaysia?
Price: Can you sell the product at a competitive price?
Competition: How much competition is there for the product?
Shipping costs: How much will it cost to ship the product to Malaysia?
Customs duties: Will you have to pay any customs duties on the product?
Once you have decided which product to import, make sure to :
Use the privatized single digital window called Dagang Net to declare your imported goods for business.
Use uCustoms for goods clearance. It offers a “Single Window” for customs clearance and is a fully integrated, end-to-end customs modernization solution.
Pay all duties/customs taxes imposed on imported goods to Malaysia in advance for faster release.
Work with a freight forwarder to help you with the import process, including arranging shipping, clearing customs, and delivering the goods to your destination.
Don’t forget to insure your imported goods to Malaysia against loss or damage during shipping.
Consider consulting an experienced freight forwarder or customs broker before importing goods into Malaysia.
Easy Way How to Import to Malaysia
If you are looking for a reliable partner to import to Malaysia, AsiaCommerce is a procurement company that provides several services such as comprehensive market research, arranging partnerships in local industry, and creating sales programs based on market research.
Our Market Insight Research, Business Partnership Engagement, and Business Registration and Establishment services can help you expand and develop your business, register and establish your products and company.
Our strategy consulting services domain focuses on supporting private sector clients with comprehensive and specialized development regarding the company’s needs and also on the public sector for a broader scope.
If you’re interested in exploring market opportunities in Indonesia, visit our service page for more information. Our team will work with you every step of the way, from finding a supplier, shipping door-to-door, and handling import documents to ensure your market entry to Indonesia.
The Philippines boasts a resilient and rapidly growing economy, characterized by robust consumption, a young population, and a thriving services sector. With a GDP growth rate averaging around 6% in recent years, the country presents ample opportunities for both domestic and foreign investors.
One of the Philippines’ greatest assets is its young and dynamic population, with a median age of just 25 years. This demographic dividend fuels consumer spending and drives demand for a wide range of goods and services, making the country an attractive market for businesses looking to capitalize on a growing consumer base.
Filipino consumers are known for their brand loyalty and preference for value-oriented products. With a burgeoning middle class and increasing disposable incomes, there is growing demand for premium and niche products across various sectors, including food and beverages, fashion, electronics, and healthcare.
Setting up Your Business in Philippine
There are 8 steps in setting up business in Philippine.
1. Choose Your Business Structure
Decide on the most suitable business structure for your venture, such as a sole proprietorship, partnership, corporation, or branch office. Consider factors like liability, taxation, and ownership requirements.
2. Register Your Business Name
Conduct a business name search with the Securities and Exchange Commission (SEC) to ensure your desired name is available. Once approved, register your business name and obtain a Certificate of Registration.
3. Secure Necessary Permits and Licenses
Identify the specific permits and licenses required for your business activities. This may include barangay clearance, mayor’s permit, Bureau of Internal Revenue (BIR) registration, and specialized permits depending on your industry.
4. Register with Government Agencies
Register your business with relevant government agencies such as the SEC for corporations, Department of Trade and Industry (DTI) for sole proprietorships and partnerships, BIR for taxation purposes, and Social Security System (SSS) for employee benefits.
5. Comply with Taxation Requirements
Familiarize yourself with the Philippine tax system and fulfill your tax obligations, including income tax, value-added tax (VAT), and withholding tax. Register for a Tax Identification Number (TIN) and keep accurate records of your financial transactions.
6. Open a Business Bank Account
Open a business bank account with a reputable bank in the Philippines to facilitate your financial transactions and separate your personal and business finances. Prepare the necessary documents, including your business registration papers and identification.
7. Establish Business Operations
Set up your physical or virtual office, acquire necessary equipment and supplies, and establish operational procedures and systems. Consider factors like location, accessibility, and infrastructure when selecting your business premises.
8. Stay Compliant and Updated
Regularly monitor changes in regulations, tax laws, and compliance requirements to ensure ongoing compliance with legal obligations. Maintain accurate records, file necessary reports and renewals on time, and seek professional advice when needed.
Choose Your Overseas Supplier
After setting up your business, the next step is choosing the right overseas supplier. This can be a lot of issues ranging from language differences to payment methods. But if you follow simple strategies on this article, these issues can be easily resolved.
Firstly, research and shortlist the potential overseas suppliers. Ask them for a quote and other related documents. Check among the suppliers’ list who can meet high standards and date consistency within the right price. If possible, visit the suppliers to inspect their operations and make rigorous inquiries about compliance, manufacturing practices, and reliability.
To avoid financial risk, consult your bank to know the financial status of the overseas supplier you want to opt for. Choose the option that ticks most of your boxes. After you enter an agreement, do not forget to check your supplier’s regular performance.
Provide Sample Product and Quality Check Services
After deal an agreement with the overseas supplier, ask for a sample product to make a quality check. It is a fundamental process, as approving a shipment with defective products can seriously provide a dent in your business and tarnish the company name. Follow this steps to achieve this seamlessly:
Avoid the cherry-pick samples provided by the overseas supplier that they know will meet your requirements. By using the acceptance sampling method, pick random samples to get a fair report of your shipment.
Check whether the products match the proper specifications you provided to the supplier and match the quality standard you have asked for.
Many products are often found damaged to the point where they are unsellable due to poor quality packaging. Make sure to verify the packaging quality before distributing your products in the market.
Defects are typically classified into three categories: critical, major or minor. If you find any defect after inspection, report the right category to the supplier quickly. They are bound to make the required necessary changes before the distribution of products.
At least try to conduct one on-site testing of the product if possible. It can provide key insights into any factor that can affect the product’s performance, safety, or functionality.
Work with a Freight Forwarder to Understand the Costs of Importing your Product
The freight forwarder will take care of import, export, and distribution of your business needs. They will contact their known third-party service providers, who will handle the necessary services. The key areas on which the cost will depend are:
Cargo Type
You will have a fair idea of the cargo you want to import. Understand and check the associated cost rate to avoid unnecessary surprises. Note, that the rates will be high for oversized, perishable, or hazardous products.
Weight and Volume
The volumetric and actual weight of your cargo are compared to determine the shipment cost. The lightweight goods that occupy more space are expensive compared to something dense and small.
Packaging
Filling up shipping containers properly requires proper palletization and packaging. Freight forwarders ask for an additional charge for this service. Make sure to work with one who understands the legislation of the e-commerce Philippines.
Container Cost
A full container load (FCL) is not required for most shipments. Freight forwarders often combine other shipments in a single unit and charge you only the space taken up by your products.
Carrier Cost
The rate for shipment varies by which carrier you want to import, land, sea, or air. Consider two factors while calculating this cost, the distance traveled and the route popularity.
Documentation Fees
Out of several documents, the freight forwarder knows exactly the documents you need to attach with your shipment and their fees while importing.
Insurance and Administrative Charge
Freight forwarders charge insurance fees as an add-on service. Again, some of them include the insurance charge while mentioning their quote. The administrative charge is the deserved fee for handling the shipment process in a hassle-free manner.
Additional Charges
Some additional charges can come up before, during, or after the shipment is processed. Common among them are Currency Adjustment Factor (CAF) and Fumigation fee.
Compare Sea and Air Freight Options
The debate and dilemma in choosing a suitable freight carrier are never-ending. Both Air freight and Ocean freight come with their pros and cons. But here are some factors to consider that will help you decide your choice.
Cost
The cost of shipping is one of the most important factors to consider when it comes to business. It is obvious that ocean freight offers extensive capacity with less expense than air freight.
But in the case of small packages that do not fulfill the container’s load, the shipping cost in ocean freight can be more than air freight. For this reason, you must thoroughly compare and calculate before choosing the shipment type.
Time
If the issue is time-sensitive, then air freight beats ocean freight on all counts. Long journeys, port hold-ups, customs, and weather conditions are the major factors that cause delays for ocean freight.
Type of Cargo
Air freight provides a long list of items that cannot get shipped, including objects that contain gases, flammable objects, toxic and corrosive objects, and many more. The ocean freight has no restrictions and can even carry the bulkiest of items hassle-free.
Safety
Safety is of utmost importance, leaving time and cost aside. In both these modes of transportation human factor plays a crucial role. Multiple things can go wrong in any sphere, from handling to securing goods. Freight forwarders must adhere to the guidelines provided by the mode of shipment to avoid any kind of accident.
Accessibility
The well-defined procedures and shorter time frame required in air freight make it more accessible and connected compared to ocean freight. Heavy traffic in seas port, which gives rise to detention and demurrage charge, can put a dent in your company budget.
Getting Started to Expand Your Business in Philippines Now
AsiaCommerce is a procurement company that provides several services such as comprehensive market research, arranging partnerships in local industry, and creating sales programs based on market research.
Our Market Insight Research, Business Partnership Engagement, and Business Registration and Establishment services can help you expand and develop your business, register and establish your products and company.
Our strategy consulting services domain focuses on supporting private sector clients with comprehensive and specialized development regarding the company’s needs and also on the public sector for a broader scope.
If you’re interested in exploring market opportunities in Indonesia, visit our service page for more information. Our team will work with you every step of the way, from finding a supplier, shipping door-to-door, and handling import documents to ensure your market entry to Indonesia.
Candlenuts, also known as Kemiri in Indonesian, Kukui in Hawaii, and a staple in food, beauty, and health treatments, have long been cherished for their versatile applications in culinary and traditional practices. As an SEO expert, you understand the significance of tapping into niche markets, and the candlenut import industry offers a promising venture. In this article, we will delve into the multifaceted aspects of candlenut imports, exploring their origins, uses, and the lucrative opportunities that lie within edit.
The Origins of Candlenuts
Candlenuts have a rich history, primarily cultivated in Southeast Asian countries such as Indonesia and Malaysia. These nuts come from the Aleurites moluccana tree, which is native to the region. Understanding the geographical origins of candlenuts is crucial for anyone looking to venture into the import business.
Culinary Uses
Candlenuts are a staple in various cuisines, adding a unique flavor and texture to dishes. Explore the significance of candlenuts in traditional Southeast Asian cooking, from curries and sambals to desserts. Highlight their nutritional benefits and the growing global demand for exotic ingredients in modern kitchens.
Medicinal and Beauty Applications
Beyond the kitchen, candlenuts have been utilized for their medicinal properties and skincare benefits. Uncover the traditional practices that involve candlenuts, such as their use in traditional medicine and beauty products. This adds an additional layer of appeal for those interested in holistic health and beauty markets.
Global Market Trends
Conduct an analysis of the current global market trends related to candlenut imports. Highlight the regions with the highest demand, the key players in the industry, and any emerging market opportunities. This information is crucial for potential investors or business owners looking to make informed decisions.
Challenges and Solutions
No business venture is without its challenges. Discuss potential hurdles in the candlenut import industry, such as regulatory issues, quality control, or market saturation. Provide solutions and strategies to overcome these challenges, ensuring a smoother entry into the market.
Sustainability and Ethical Sourcing:
In an era where consumers are increasingly conscious of environmental and ethical issues, discuss the importance of sustainable and ethical sourcing in the candlenut industry. Highlight any certifications or practices that can enhance the marketability of candlenuts in an eco-conscious world.
Conclusion
Summarize the key points discussed in the article, emphasizing the potential for success in the candlenut import business. Encourage readers to explore this unique opportunity, armed with the knowledge gained from the comprehensive guide.
By providing a well-researched and informative article on candlenut imports, you can position yourself as an authority in the industry and attract a diverse audience interested in culinary, cultural, and business perspectives.
Get Your Best Candlenuts Product Here
AsiaCommerce provides several services such as comprehensive market research, arranging partnerships in local industry, and creating sales programs based on market research.
Our Market Insight Research, Business Partnership Engagement, and Business Registration and Establishment services can help you expand and develop your business, register and establish your products and company.
Our strategy consulting services domain focuses on supporting private sector clients with comprehensive and specialized development regarding the company’s needs and also on the public sector for a broader scope.
If you’re interested in exploring market opportunities in Indonesia, visit our service page for more information. Our team will work with you every step of the way, from finding a supplier, shipping door-to-door, and handling import documents to ensure your success in importing from Indonesia.
