Amazon and TikTok's owner ByteDance are expanding their offices in Singapore.
Details: Amazon recently leased space in Asia Square Tower 1, while ByteDance secured floors in the landmark One Raffles Quay, Bloomberg reported.
The financial industry used to be the main driver of office demand in Singapore, taking up almost half of new space between 2004 and 2014, said the report.
According to estimates by real estate consultancy firm Jones Lang LaSalle Inc, the share of financial industry plunged to 26% between 2015 and 2020, over the same period, the portion obtained by tech firms almost tripled to 22%.
Indonesian upstarts Gojek and Traveloka and South Korea’s Coupang are also considering expand in Singapore, according to analysts from Savills Plc and Knight Frank.
Context: Despite being a city-state with 5.6 million people, Singapore's attractiveness has grown as China-US tensions deepen.
Its ability to remain neutral in a polarized world and the status as the doorway to SEA appeal to Chinese tech giants and their Western counterparts.
Alibaba bought half of a Singapore skyscraper with more than half a billion dollars last year while Tencent opened its regional headquarters for SEA in Singapore.
The Internet sector in Southeast Asia continues to maintain strong growth, reaching $100 billion in 2020, and is on track to cross $300 billion by 2025, according to the "e-Conomy SEA 2020" released by Google, Temasek and Bain & Company