Overview
B2B trade driven by SMEs; strong infrastructure and global consumer trends fuel growth
The wholesale/distribution sector in Singapore is highly diversified, accounting for approximately 12% of GDP and around 9% of the workforce. Considered a global trade hub and one of the largest sectors of Singapore's economy, it is driven by the country’s strong trade infrastructure, global consumer trends and advancements in technology.
Approximately 30% of Asia’s commodities trade is conducted through Singapore, carried out by about 80% of the global commodity companies that operate in the country. Taking the scale of operations into consideration, approximately 97.3% of these companies are SMEs, while around 2.7% are large enterprises. The B2B trade of commodities in Singapore is categorised into seven clusters: agricultural materials, household goods, machinery and equipment, fuels and chemicals, general merchandise, transport equipment, metals and minerals, and construction materials.
Singapore is home to 70% of the world’s top agri-commodities trading companies, and 80% of the top oil and gas companies in the world. Furthermore, 50% of the top 15 global electronics distributors and six of the world’s leading electronics manufacturing services companies are based in the country. Singapore is also a key hub for the import and export of general merchandise, brokering and financial infrastructure deals, base metals, iron ore and coal. In addition, it serves as a global pharmaceutical manufacturing base and a regional base for key automotive companies.
Key Trends
Supply chain significantly impacted by COVID-19; companies turn to technology advancements to boost operations
The COVID-19 pandemic has had a significant impact on the wholesale trade sector, with a drop in external demand, sudden factory closures and prolonged global supply chain disruptions. As much as 71% of companies in the industry faced a spike in economic volatility, while 56% were affected by changing consumer trends and 35% focused on accelerated digitalisation. This has encouraged companies to invest more in technological adoption, in a bid to strengthen their supply chain management and better manage their operations.
Border closures and lockdowns in countries across the globe have resulted in a shortage of labour and insufficient manpower, particularly for SMEs. Many firms worldwide are looking at shifting their operations online to better manage this.
Economic volatility leads to digital revolution of supply chain and industry as a whole
Digital transformation of the wholesale industry, powered by the emergence of new online platforms, enables lower pricing, logistical expertise and easy access to customers. The pandemic has resulted in companies trying to shorten their supply chain by eliminating the middleman, with consumers relying on food delivery services and other channels to obtain access to food supplies. Furthermore, farmers, fertiliser and seed suppliers, and food distributors have shifted to online marketing and distribution channels, while e-commerce and logistics platforms are used to meet demand.
Government takes initiatives and provides investments to digitise sector
Singapore’s wholesale sector, being one of the largest and most diversified industries, is heavily backed by the government in its efforts to boost digitalisation, develop new trade products and services, and expand into new trade markets.
In 2017, the Singapore government launched the Wholesale Trade Industry Transformation Map (ITM) to help wholesale companies digitalise and enhance global growth and productivity. In addition, it launched the Wholesale Trade Industry Digital Plan (IDP) as part of the SMEs Go Digital programme, to make digitisation easier for SMEs. This programme provides a step-by-step guide on digital solutions available to local SMEs in the industry at various stages of the companies’ growth.
In 2020, the government announced its plan to invest approximately 1% of Singapore’s GDP in research, innovation and enterprise (RIE) activities, in an attempt to sustain investments from 2021 to 2025. The Global Innovation Alliance is said to support previous RIE investments that aim to meet future shifts in the global economy. The new initiative will focus on wholesale trade as well areas of importance such as aviation, sea transport and logistics.
Additionally, Singapore launched its I&E Fellowship Programme (IFP) under its RIE2025 initiative, which will provide participants with training and mentorship in tech commercialisation, through partnerships with public and private sector I&E platforms, corporate laboratories, private sector incubators and accelerators.
Reliance on digital platforms significantly impacts labour
Although Singapore’s labour market has seen an overall drop in retrenchments in 2021, it continues to struggle, with the wholesale trade sector recording the most employee layoffs, followed by the financial services sector.
Approximately 1,113 companies in the wholesale industry conducted employee retrenchments in 2021, as opposed to 1,962 in 2020 at the height of the pandemic. This was a direct result of business reorganisation and restructuring following the COVID-19 pandemic, with an increased focus on digital marketplaces as an alternative channel for wholesale trade and more firms moving towards remote work structures.
Rising petroleum prices lead to surge in domestic and foreign trade
In 2021, Singapore’s domestic wholesale trade registered steady growth in all industries amidst the COVID-19 pandemic. The ship chandlers and bunkering, and petroleum and petroleum products industries recorded the highest YoY growth in domestic sales, with sales increasing by 74.1% and 54.4%, respectively, backed by a sharp increase in oil prices and improved demand for petrochemicals.
Additionally, household equipment & furniture, and other wholesale trade industries recorded YoY sales growth of 19.1% and 18.2% in 2021, respectively. This came on the back of increased demand for audio and video equipment, and medicinal and pharmaceutical products.
Year 2021 was good for Singapore’s foreign wholesale trade, with growth in sales recorded across all wholesale trade industries. The petroleum and petroleum products, and bunkering and chemicals products sectors registered the highest growth in foreign sales, of 94.4% and 78.8% YoY, respectively.
This growth was attributed to a higher external demand for petroleum, chemicals and related products, as well as increased oil prices. Other industries that recorded significant growth were metals, timber and construction materials, as well as electronic components, which recorded sales growth of 35.0% and 29.5%, respectively.
Key Statistics
- In 2021, domestic wholesale trade recorded overall year-on-year sales growth of 34.9%, while foreign wholesale trade registered overall year-on-year sales growth of 48.7%.
- The wholesale trade sector in Singapore has over 34,500 commodity companies in operation, largely comprising SMEs.
- Considered a pillar of the economy, it provides over 350,000 jobs, with almost 70% of them being PMET (professionals, managers, executives and technicians) roles.
- The wholesale trade industry saw a sharp drop in employee retrenchment, recorded at 8,020, a significant reduction from 26,110 in 2020.
Top Singapore MNCs in Wholesale/Distribution Sector
GLENCORE SINGAPORE PTE. LTD.
Repeated as per client.
MERCURIA ENERGY TRADING PTE. LTD.
Headquartered in Switzerland, Mercuria Energy Group Ltd. is a multinational commodity trading corporation that trades in a variety of international energy markets. It is the parent firm of Mercuria Energy Trading Pte. Ltd. which provides trading of energy and commodity products in Singapore. Mercuria Energy Trading was incorporated on 3 June 2004. The company provides a variety of products, including fuel and crude oil, gasoline, naphtha, petrochemicals, natural gas, agricultural goods, power, coal, base metal, marine, biodiesel, and software. The firm serves customers regionally as well as globally.
LOUIS DREYFUS COMPANY ASIA PTE. LTD.
Repeated as per client.
DUFERCO ASIA PTE. LTD.
Repeated as per client.
ELEMENT14 PTE. LTD.
Premier Farnell Ltd. is a British distributor of technology products, solutions, and services for electronic systems design, maintenance, and repair in North America, Europe, and the Asia Pacific, with operations in 36 countries and trading in more than 100 countries globally. Farnell is the parent firm of Singapore-based element14 Pte. Ltd. which was founded on 10 March 1995, and operates in 10 countries across the Asia-Pacific region. Element14 serves its clients in Indonesia, Vietnam, and Brunei out of Singapore. Farnell was acquired by the American firm Avnet, Inc in 2016.
VITOL ASIA PTE LTD
Headquartered in Switzerland, Vitol is an energy and commodity trading company. It is the parent company of Singapore-based Vitol Asia Pte. Ltd., which was incorporated on 21 April 1990 as the regional headquarters for the Asia Pacific. The firm offers refining, shipping, trading, and storage of crude oil and other energy products. Vitol Asia serves ship and fleet owners with global access to the highest quality marine fuels across key bunkering locations. The network of bunker ships, owned, managed, and operated by Vitol Bunkers, provides services using its Singapore-flagged fleet.
GUNVOR SINGAPORE PTE. LTD.
Headquartered in Switzerland, Gunvor Group Ltd. is a multinational commodity trading corporation. It has expanded its trading portfolio to include the global sourcing and delivery of crude oil and refined oil products, LPG, natural gas, LNG, biofuels, carbon, and metals. Gunvor Singapore Pte. Ltd. is the group’s Singapore-based trading office, which was incorporated on 15 May 2006, and operates across the Asia-Pacific and worldwide. Commonwealth LNG and Gunvor Singapore signed a Heads of Agreement (HOA) in 2019 for the sale and purchase of 1.5 million tonnes of liquefied natural gas (LNG) annually, over 15 years.
MRI GROUP PTE. LTD.
Repeated as per client.
SWISS SINGAPORE OVERSEAS ENTERPRISES PTE. LTD.
The Aditya Birla Group, a multinational corporation based in India, is a premier global supplier of bulk commodity trading solutions. Globally, the firm is among the most cost-efficient aluminium and copper producers. Swiss Singapore Overseas Enterprises Pte. Ltd. (SSOE), the firm’s Singapore-based subsidiary, was incorporated in 1978. SSOE provides quality agro products, minerals, and metals across the globe. The firm also delivers on-ground logistics services for several commodities such as tea, coal, sulphur, fertilizer, and petroleum products. For many of the products it trades in, SSOE offers tanker storage and warehousing facilities.
MABANAFT PTE. LTD.
Headquartered in Germany, the Mabanaft Group began its journey as a domestic oil trading company. Today, it is an integrated and independent energy firm that provides its clients with cutting-edge energy solutions for their industrial, heating, and transportation needs. On July 2, 2007, Mabanaft launched a new office in Singapore as a part of its international expansion strategy. Under the name Mabanaft Pte. Ltd., the Singapore subsidiary conducts business in the Far East in both physical petroleum products and derivatives. It is also the third key market for Mabanaft's exports.
Top Singapore Large Local Enterprises in Wholesale/Distribution Sector
ASIA ENTERPRISES HOLDING LIMITED
Repeated as per client.
BAN LEONG TECHNOLOGIES LIMITED
Repeated as per client.
INTRACO LIMITED
Intraco Limited was established by the Singaporean government in 1968, and served as the nation's main trading arm to investigate international markets and locate fresh raw material sources. In collaboration with its shareholders and subsidiaries, Intraco deals in the trading and distribution of plastic resin products, fire protection products, and services. It also offers crane and heavy equipment rentals to clients. Intraco is also specialized in the design, building, and maintenance of radio coverage infrastructure for the provision of mobile telecommunication services to mobile network operators.
SERIAL SYSTEM LTD
Serial System Ltd. was founded in 1988 in Singapore. The firm owns and manages a global distribution network that encompasses a wide variety of sectors, including consumer electronics, telecommunications, home appliances, industrial, electronics manufacturing services, security and surveillance, automotive, and medical. With 21 offices and 13 warehousing facilities in key Asian markets, Serial System has one of the most extensive distribution networks in the region. Serial System has also been progressively expanding its product portfolio to support customers within emerging core technologies, and offering computer peripherals, printer accessories, and print services.
YHI INTERNATIONAL LIMITED
Repeated as per client.
TRAFIGURA PTE LTD
Established in 1993, Trafigura Pte. Ltd. is a Singapore-based group of independent commodity trading and logistics houses. Trafigura has built a global trading operation through trading divisions comprising oil and petroleum products, shipping and chartering, metals and minerals, as well as power and renewable energy. These divisions are supported by the firm’s industrial assets and investments globally. Trafigura’s net profit was recorded as $2.7 billion in its half-year results as of 31 March 2022. In comparison to the first half of the 2021 fiscal year, this performance represents a 27% rise.
TYE SOON LIMITED
Repeated as per client.
EQUATORIAL MARINE FUEL MANAGEMENT SERVICES PTE. LTD.
Founded in 2000, a one-stop service provider for bunkering in Singapore, Equatorial Marine Fuel Management Services Pte. Ltd. is one of the few businesses with complete control over its supply chain. Equatorial owns and operates a modern fleet of vessels and product tankers for the transportation of petroleum products around Asia and globally. The firm sources cargo from key suppliers and trades in petroleum products with other international oil companies. The firm delivers 4 to 5 million metric tonnes of bunkers per year. Additionally, two floating oil storage terminals are owned and run by Equatorial.
UNION GAS HOLDINGS LIMITED
Repeated as per client.
MERCANTILE & MARITIME ENERGY PTE. LTD.
Mercantile & Maritime Energy Pte. Ltd. was incorporated on February 24, 2017. With its headquarters in Singapore, it is an independent commodities trading business that has a presence in the Middle East, Europe, and Asia. An expert in the frontier market, Mercantile & Maritime offers its international clients a broad variety of services along the whole value chain for oil and gas. These services include shipping, field services, financial services, physical products trading, project development and management, export process management, storage terminals and bunkering, and more.
Top Singapore SMEs in Wholesale/Distribution Sector
FROSTS FOOD & BEVERAGE (PTE.) LTD.
Singapore-based Frosts Food & Beverage Pte. Ltd. was established in 1996. The firm commenced operations by focusing on import and distribution but has now expanded to on-site fresh food processing. By splitting quantities for fresh items and dealing with the logistics of frozen or thawed products, Frosts Food & Beverage services the main convenience store chains and petrol stations. The firm sources products from around the globe and distributes them to a variety of institutional customers island-wide using its cold chain operations. The company has also expanded its retail portfolio, now serving almost all of its stores regionally.
YONG WEN FOOD (S) PTE. LTD.
Established in 2001, Yong Wen Food(s) Pte. Ltd. is a subsidiary of Yong Wen Group. The headquarters of Yong Wen Group are in Singapore, and the company has a distribution network spanning three nations: Singapore, Malaysia, and Hong Kong. Yong Wen Food(s) began with the formation of its local distribution network and supply to Singapore's domestic market. It has since expanded to become a known distributor and exporter in the country. Yong Wen Food(s) is expanding its substantial export network, which currently covers more than 40 countries globally.
MAKOTO-YA (S) PTE LTD
Established in 1992, Makoto-Ya (s) Pte. Ltd. is a Singapore-based importer, exporter, and wholesaler of Japanese food and beverage. Additionally, Makoto-Ya harvests growth and imports its brand of rice from Japan, which is milled only upon orders. Makoto-Ya also assists companies in organizing corporate events. The firm’s quality products and services have led to close industrial relations with hotels, restaurants, supermarkets, retail stores, and e-commerce platforms. Makoto-Ya has received several accolades for its performance including the 2010 Successful Entrepreneur Award, the 2011 Singapore Brands Award, and the 2020 and 2021 SME 500 Awards.
PHARMAFORTE SINGAPORE PTE LTD
Established in 1995, Pharmaforte Singapore Pte. Ltd. is a Singapore-based wholesale, marketing, warehousing, and distribution partner, as well as a local representative of several global pharmaceutical and medical companies. The firm supplies a wide range of quality pharmaceuticals, over-the-counter medicines, consumer health products, medical disposables, diagnostics, and dental products to healthcare professionals and patients in Singapore. Pharmaforte provides medical equipment to more than 1,300 private medical clinics and 660 private dental clinics in Singapore. The company offers logistics and inventory management services for a variety of goods, including processing, storing, and distributing temperature-sensitive goods such as vaccines and in-vitro diagnostic equipment.
ZIWELL MEDICAL (S) PTE LTD
Established in 1992, Ziwell Medical (s) Pte. Ltd. is a Singapore-based importer and distributor of therapeutic products and medical devices. The firm works with suppliers and manufacturers to register products and maximize its market reach in Singapore, Malaysia, and Brunei. Ziwell Medical is aservice provider of end-to-end solutions from regulatory matters to distribution services. The firm supplies a wide range of quality products such as medical devices, therapeutic products, over-the-counter medication, cosmetic products, and health supplements. Ziwell Medical's offices in Singapore and Malaysia have been awarded with a certificate of Good Distribution Practice for Medical Devices.
ARIES FRESH PTE. LTD.
Aries Fresh Pte. Ltd., which was founded in Singapore in 1990, is an importer, exporter, and distributor of selected fresh goods, such as oyster mushrooms, chilli padi, and Japanese sweet potatoes, among others, with an annual supply capacity of 5,000 metric tonnes. The firm follows strict management of its supply chain to ensure that clients’ requirements are met: from packing, transportation, and storage to delivery. Aries Fresh supplies to over a hundred NTUC FairPrice supermarket outlets daily. Fresh fruits and vegetables are processed in the company's food factory in Singapore to meet its clients’ processing requirements.
PS ENERGY PTE. LTD.
Incorporated in 2014, PS Energy Pte. Ltd. is a distributor of quality fuel and lubricant in Singapore, through its collaboration with major oil companies, including ExxonMobil, Singapore Petroleum Company, and Shell. In 2017, the maritime and port authority of Singapore granted PS Energy a licence as a marine gas oil bunker supplier and bunker operator. Changi Airport Cargo Complex has installed a customized road tanker built by PS Energy, to meet its refuelling needs. The Singapore Grand Prix organizers chose PS Energy to deliver a fuel monitoring technology and fuel to run the generators that illuminate the night course.
APOTHECA MARKETING PTE LTD
Established in 1980, Apotheca Marketing Pte. Ltd. has been a provider of medical supplies in Singapore, specializing in trading a wide range of therapeutic products. The firm's main product lines include pharmaceutical finished products, pharmaceutical raw materials, fine chemicals, medical disposables, and medical equipment. Apotheca works in collaboration with manufacturers in China, India, Europe, and other nations through a variety of manufacturer cooperation programs to source and market pharmaceutical ingredients, intermediates, and chemicals globally. In addition to the commercial manufacturing sectors, Apotheca's clientele includes governmental organizations and government-run businesses.
ICONNEXION ASIA PTE. LTD.
Incorporated on 8 October 2007, iConnexion Asia Pte. Ltd. is a Singapore-based distributor of electronic components, as well as a provider of cable assembly services, and solutions for Printed Circuit Boards. iConnexion focuses on passive, electromechanical, and interconnect components. The firm has become a regional distributor in the Asia Pacific, with offices in China, Taiwan, India, Malaysia, and Thailand. For support following a purchase, iConnexion offers systems and programs. Additionally, for meeting its clients’ MRP, JIT, or bonded inventory needs, iConnexion provides tailored packages. Its incentive-based services include inventory stocking and custom-fitted orders.
MASDA CHEMICAL (PRIVATE) LIMITED
Masda Chemical Pte. Ltd. was established in 1975 in Singapore. Basic importers, exporters, manufacturer's representatives, and stockists of chemicals make up its line of business, which it uses to meet the distinctive, specialized demands of its consumers in the Asia-Pacific region. Currently, Masda Chemical has sales offices in China, Vietnam, Indonesia, Myanmar, Malaysia, and Thailand. Masda Chemical distributes items falling under the category of food ingredients, including stevia, sugar, salt, and skimmed milk powder. Industrial chemicals, which include items like talcum powder, sulphuric acid, hydrogen peroxide, and scents, are another group of goods that the company distributes.
Top Singapore Fastest-Growing Companies in Wholesale/Distribution Sector
ALTIS INTERNATIONAL SINGAPORE (PTE.) LIMITED
Repeated as per client.
SORIN CORPORATION SINGAPORE PTE. LTD.
Repeated as per client.
NUMORA TRADING PTE. LTD.
Headquartered in Singapore, Numora Trading Pte. Ltd. was established in 2018 as an independent commodity trading company that ensures that its clients obtain high-quality products from trustworthy suppliers for the best value. Through its global reach, Numora Trading works in East Africa, South Africa, and a few Asian nations. It specializes in transportation and logistics, storage, financing, marketing, trading, and procurement to establish better trade agreements. The business has grown steadily since its inception, and today it has an extensive global distribution network.
TRIBAL PROTECTION PTE. LTD.
Established on 15 October 2016 in Singapore, Tribal Protection Pte. Ltd. engages in the trade of ballistic vests, structural fire fighting suits, as well as permeable and non-permeable CBRNE suits. With a focus on the PPE market for military, police, civil defence, and industrial segments, and collaboration with Seyntex on all core product ranges, the firm is able to represent several manufacturers and their products in the APAC region. Tribal Protection’s products are mainly for defence and safety purposes. Its typical customers include end-users and resellers in the defence and security industry.
SCOULAR SINGAPORE PTE. LTD.
The Scoular Company is a US-based trading firm that provides supply chain solutions for end-users and suppliers of grain, feed ingredients, and food ingredients. The firm purchases and distributes, stores, handles, and processes grain and ingredients, as well as managing transportation and logistics for its clients worldwide. Scoular met the unique product needs of the Asian marketplace following the incorporation of its Asian headquarters Scoular Singapore Pte. Ltd. on 11 August 2017. Scoular Singapore is home to sales offices that serve emerging markets in the Asia-Pacific region, as well as being a regional trading office.
FLAME ASIA RESOURCES PTE. LTD.
Flame SA, which is headquartered in Switzerland, is a global trading company that sources its commodities from reputed producers, to strengthen its position in the market. Flame SA is engaged in the sourcing of thermal coal, petroleum coke, and metallurgical coal for delivery to customers worldwide. The company charters dry bulk vessels, and every aspect of the logistics chain - from barging to transshipment - is controlled by Flame SA’s Singapore office, Flame Asia Resources Pte. Ltd. which was incorporated on 7 February 2014.
OTANI TRADING PTE. LTD.
Otani Trading Ltd. is a Japanese firm that has grown into one of the major cut flower importers in Japan. Subsequently, the company established a food division to import and export food products to and fro Japan. A subsidiary of Otani Trading Ltd. was incorporated on 20 December 2018, under the name Otani Trading Pte. Ltd., which conducts business as a trading firm in Singapore. This Singaporean division imports and distributes food, flowers, and industrial equipment. Otani Trading Pte. Ltd. additionally creates information systems and manages the transport equipment system.
SINOCHEM TRADING (SINGAPORE) PTE LTD
Headquartered in China, Sinochem Group is an integrated oil and chemicals company. Energy, Chemicals, Agriculture, Real Estate, and Finance make up the five Key Business Units that Sinochem Group has formed. Sinochem Group is the parent company of Sinochem Trading (Singapore) Pte. Ltd. Founded in 1987, Sinochem Trading has been awarded the Global Trader Award for two consecutive years in the past. The firm’s line of business includes the trading of chemical fibre, chemical industrial products, general-purpose plastics and engineering plastics, within the region and internationally.
RUTRONIK ELECTRONICS SINGAPORE PTE. LTD.
Headquartered in Germany, Rutronik Elektronische Bauelemente GmbH is a global distributor of electronic components. In addition to embedded boards, semiconductors, storage technologies, displays, and wireless goods, the firm’s product line also comprises passive and electromechanical components. Customers can also use the Rutronik24 e-commerce platform, which has all of the products. Rutronik also delivers consulting services for technical, commercial, and logistical issues for its customers. Rutronik Electronics Singapore Pte. Ltd. is its subsidiary, which was incorporated on 27 March 2018. This Singaporean division has optimized product availability and distribution, as well as improving logistics support for clients in the ASEAN Region.
INVENTTA PTE. LTD.
Hong Kong-based Inventta Limited is a trading company with a specialization in sourcing and manufacturing in China and South-East Asia. It is the parent firm of Inventta Pte. Ltd. which was incorporated on 22 September 2017 in Singapore. Inventta develops export markets for Asian-made products in Africa. Power distribution equipment for the energy sector, construction machines, trucks and special vehicles, power tools and hand tools, construction materials, IT products, safety gear for the workplace, and safety equipment are some of the categories in which the company has successfully conducted business.
