The Collapse Of Singapore's Largest Company

Grab & Sea Limited, two of Singapore's largest technology companies has been dropping in valuation.

Narrated by slipstreamer
Video Edited by Iyanbriandi

Timestamp(s):
0:00 Singapore's Tech Sector
2:04 Macro Challenges
4:02 Sea Limited
7:22 Grab Holdings

Brought to you by the Behind Asian Team.

[iskandartaib]

So this is why Shopee has gotten really stingy with its shipping and cash-back vouchers, and why Grab has gotten a lot more expensive as of late.

[ShhhHhhhz]

as a singaporean, all our "tech" companies are just bad at sustaining themselves because they are just copycats of well established firms. Once they've reach all of their crowd, theres no other way they could grow and when neighbouring competitors come in they immediately loose their own. Their constant thrist of expanding into all kinds of rubbish sector just to keep afloat is what makes them vulnerable. Like what the chinese says, algorithm service/social media companies are not "Tech" companies

[wololoman]

As someone who has worked with both Grab and Shopee. It's not surprising why they are failing. It's mainly started with internal politics, bad management and what I mean is really BAD management and bad policy. Each month there's always a change in policy, rules and etc to a point that there's always new and most of the staff can't keep up.

[folkaxx]

The main problem of Shoppe is them trying to incorporate a lot of things into 1 app (Instagram story feature, Marketplace, Food Delivery, Billings), all this thing should be ok but the execution just too poor making the application seems "Cheap" also bad UI didn't help them.

[taykokhuat]

Grab was set on an Uber model that was already losing money. When Uber charged drivers 25% was already losing money yet Grab was charging 20%. Further more it took over Uber with a 28% empty share consideration, further weighing it down.

[FirdausIsmail]

in Malaysia, Shopee just recently announced there will be price hike on the commission they will take from sellers starting next year. During the pandemic they really expanded by creating their own courier/wallet/food & groceries delivery but most if not all flopped.

[PaladinA]

The problem is always the lack of a crystal clear vision and the outdated vertical management style. Using short sighted "managers" and highly paid useless advisors is another serious inherent problem.

[ailaabellanosa]

Part of it could also be that these companies grew a lot during the pandemic and people became dependent on them. But now that movement is now less restricted across SEA, retail, online shopping, and food ordering behaviors may have shifted and prompted less dependence on these apps (like people can dine in instead of ordering on Grab; shopping in-store instead of on Shopee).

They may have to prove their relevance if they want to remain at the top.

[Dominus_Potatus]

At least in Indonesia, there are no monopoly of e-commerce, Shopee has a hard time fighting home-owned Tokopedia. Shopee has agressive marketing in which some like it.
Personally, I hate the color and the web design...

[joeawk]

1. Singapore is good but over hyped.
2. Lucky in good times misunderstood as ability.
3. Casino attitude.

[cherychaplin]

SEA and Grab, they are over aggresive in market, big market doesnt mean big profit, big market mean big subsidy fund promo, which mean BIG LOSS.. Thats why Gojek (GoTo) sold their market in thailand to Airasia and their postpone to enter Philipines and Malaysia market, and Tokopedia still focus in Indonesia market. GoTo more careful and 'Biar Lambat Asal Selamat' or 'Slow But Sure' ..

[afiqbrownfox]

Keyword is "overvaluation". They're just riding the tide, hence the overvaluation. Once the hype died down, they'll follow suit.

[frankmuller.]

Market cap is just one side of the equation. We should look beyond and compare P/E, P/B, P/FCF etc to get a true sense of relative valuation for these stocks.

[BehindAsia]

Singapore's technology sector are continously seeing tremendous pressure. Do you think it due to a failure in management or external factors? Let us know down below!

Correction(s):
8:19 Loss was $1 Billion not $1.4 Billion

[shikyokira]

I'm surprised this video didn't consider talking about these 2 companies being listed on NYSE, which is a large factor of their rapid rise in stock price, following the trend of all other tech stocks, which is right during the pandemic, even the fall started around the same as them. And the common factor of this rapid rise is none other than US mass printing of money. The moment inflation started becoming a problem, and fed started increasing interest rate, that's when all hell break loose, all investors start dumping their stocks in US, because the days of "free money" or "infinite money" is gone

[steventan]

The main reason is stock manipulation: Pump and dump. The syndicate made a fortune while the naive investors are stuck with paper losses

[ekananda]

In short, it's because of massive overvaluation

[robbieseng]

Poor corporate and business policies as well as poor management are main reasons of Grab' s consistent annual losses

[huaiwei]

Grab people off the streets of Singapore and ask them which are the biggest companies here, and few will identify either Sea or Grab. Both grew exponentially, and then receded quickly as well, such that few will even be aware how big they were at their peak. And although both are now headquartered here, Sea was founded by three China-born individuals who then became Singaporeans, and Grab started as a Malaysian company founded by two Malaysians, one of whom then became a Singaporean. This video will therefore probably come across as surprising to many Singaporeans who wonder if DBS / Singapore Airlines / Wilmar / Singtel / CapitaLand just collapsed.

[annoyedcat]

Singaporean market is small, and they have to compete against other tech companies in different countries. Like, why should Indonesians use Grab when there's Gojek, a local Indonesian company?