ONLINE buying is getting popular with Singaporeans, but Singapore is still millions of mouse clicks away from becoming an international or even a regional e-commerce centre.

Mere potential was just what was indicated in a pre-festive period survey by MasterCard Global and Ipsos-Insight: 60 per cent of respondents said they would buy holiday gifts online, up from 35 per cent the previous year. They would spend marginally more than they would in the shops. In Britain and the United States, the proportion was at least 75 per cent, with sales estimated at ?15 billion (S$43 billion) and US$42 billion (S$60 billion) respectively in the year-end holiday season just past.

Singapore will not get into this league if it depends mainly on local shoppers. E-commerce is supposed to transcend physical borders. Travel sites here may be selling air tickets and hotel rooms on the Internet, which bump up absolute sales figures. But Singaporeans are as likely to buy clothing, cooking essentials, books, music and such like items on foreign websites such as Victoria's Secret, REI and Amazon. How many Singaporean websites are well-known even to Singaporeans, let alone buyers in neighbouring countries? Can any start-up here hope to match such retail power eventually? It is too early to foreclose any possibility, to be fair. South-east Asians lag South Koreans and Japanese in online shopping. But as Asean nationals see incomes rise, gain wide Internet access and find irresistible choices on the Web, Singapore is well positioned to satisfy a new wave of consumer demand.

Free trade and market union proposals aside, many policy and practical issues will need attention. Foremost is the need to build trust and confidence among both sellers and buyers in a marketplace where credit card fraud and fly-by-night habits are known to be problematic. Banks here could do more to secure international online payments.

Having a world-class sea- and airport, Singapore offers vendors prompt delivery, a selling point in e-commerce. They will also have to offer and stand by hassle-free return, refund, rebate, repair and replacement warranty. Singapore could forego tax on items shipped elsewhere that in the US was critical in boosting inter-state Web commerce. The Government is spending big to build the next generation national broadband network. The infrastructure is there for entrepreneurs to make a go, big time, of online commerce. Combined with the brick-and- mortar existence critical to the Singapore tourism experience for visitors, online shopping is the 'external' wing which can yield a decent payoff.