Malaysian satellite and internet TV service provider Astro Malaysia Holdings Bhd’s home shopping business arm Astro GS Shop has set up a company in Singapore to ride on the booming e-commerce business in the region.
“Astro GS Shop Singapore Pte. Ltd. is a private company limited by shares incorporated in Singapore with an issued and paid-up share capital of $72,121 (SG$100,000) comprising 100,000 ordinary shares. Its principal activity is to undertake a home shopping business in Singapore,” Astro announced at the stock exchange today.
The company has received an approval for the incorporation from the Accounting and Corporate Regulatory Authority of Singapore. Setting up of the new company is not expected to have any material effect on the earnings, net assets and gearing of the Astro for the financial year ending January 31, 2017, nor any effect on the share capital and substantial shareholders’ shareholdings of the company, it said in its filing.
With Southeast Asia’s internet economy set to boom by leaps and bounds in the coming years, many local and international players are looking at Singapore as the springboard for expanding or boosting their presence in the region.
Astro Malaysia started its home shopping business last year and is expected to new home shopping channels to seek advantage of the country’s growing e-commerce industry.
Malaysia’s retail market is expected to grow 4 per cent annually to $38.2 billion (MYR160 billion) in 2020. Astro’s home shopping network is looking at an annual revenue of at least $167.2 million by 2020.
(Source: Deal Street Asia)