As the new year begins, Southeast Asian markets are implementing significant policy changes that directly impact cross-border e-commerce operations. These developments affect sellers' costs and compliance requirements across Singapore, the Philippines, and Vietnam.
Singapore: GST Increase Triggers Shopee Shipping Rate Adjustments
Effective January 1, 2023, Singapore raised its Goods and Services Tax (GST) from 7% to 8%. Consequently, Shopee Singapore adjusted its shipping rates on January 18 to reflect the new tax structure, directly affecting sellers' logistics expenses.
Key Shipping Policy Clarifications:
- Orders placed before January 18 will maintain the 7% GST shipping rates, even if logistics processing occurs after the adjustment date.
- The rate changes only affect Shopee's standard delivery channels (Shopee Xpress, J&T, Speedpost Standard, Ninja Van, and UrbanFox) and exclude Singapore Post regular mail or seller self-delivery options.
- Seller self-delivery remains restricted to specific product categories including oversized items, installation-required products, perishables, and virtual goods.
- Ninja Van's dimensional weight calculations now correlate with Shopee's 1-5KG weight tier for "S" category shipments.
- Participants in Shopee's free shipping program remain responsible for base shipping costs, with the platform covering buyer coupon discounts.
- Standard channel rates are uniform across all logistics partners, allowing sellers to prioritize service quality over price differences.
Philippines: SIM Registration Deadline Approaches
The Philippine Department of Information and Communications Technology (DICT) has reminded citizens that mandatory SIM card registration will conclude on April 26. Unregistered SIMs will face deactivation as part of national efforts to combat telecommunications fraud.
As of January 11, approximately 10.47% of the country's 169 million mobile users (17 million SIMs) had completed registration through official portals operated by major carriers Smart, Globe, and DITO. The DICT encourages prompt registration through designated channels to avoid service disruptions.
Vietnam: Strengthened E-Commerce Regulations
Vietnam's E-Commerce and Digital Economy Authority has intensified market oversight, addressing 1,663 non-compliant storefronts and 6,437 problematic products in 2022. The agency also resolved 265 consumer complaints regarding unregistered operations, counterfeit goods, and deceptive business practices.
New provisions under Decree No. 85/2021/ND-CP establish stricter requirements:
- Clear delineation of logistics provider responsibilities on e-commerce platforms
- Enhanced seller accountability for accurate product representations
- Mandatory disclosure of refund/return policies on all Vietnamese e-commerce sites
- Specific localization requirements for foreign operators, including Vietnamese-language interfaces and domains for platforms exceeding 100,000 annual domestic transactions
Strategic Recommendations for Sellers
These regulatory shifts present both challenges and opportunities for cross-border merchants. Key adaptation strategies include:
- Monitoring platform notifications for operational updates
- Ensuring Philippine-based customers complete SIM registration
- Aligning Vietnamese operations with new compliance standards
- Optimizing logistics partnerships to mitigate cost increases
- Enhancing product quality and customer service to maintain competitiveness
Southeast Asia's dynamic e-commerce landscape requires continuous adaptation to evolving policies. Proactive compliance and strategic adjustments will position sellers for sustainable growth in these high-potential markets.