Sea's Edge

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Shopee owner Sea is inching closer to becoming Southeast Asia's most valuable company, Olivia Poh reports. Sticking with retail (sort of), Filipe Pacheco and Low De Wei report on Singapore preparing to sell hundreds of confiscated luxury items, and Katrina Nicholas gives us the lowdown on Australian eatery Club Street Laundry.

Sea's $100 Billion

Sea is back above $100 billion. Sea posted record sales that sent its stock surging this week, bringing it close to reclaiming its title as Southeast Asia's most valuable company — hot on the heels of DBS.

The Singapore-based company's market value is now about $103 billion, compared with $111 billion for DBS, the regional banking giant based in the same city. The e-commerce and gaming firm reported soaring sales that topped estimates as more of Southeast Asia's consumers turn to its online shopping platform Shopee.

A delivery worker for Sea Ltd.'s logistics arm SPX Express, which processes most deliveries for their e-commerce unit Shopee. Photographer: Aparna Nori/Bloomberg

The region's top e-commerce retailer is battling deep-pocketed global challengers including ByteDance's TikTok Shop and Alibaba's Lazada. Emerging players like Shein and PDD's Temu are also looking to break into the region, home to about 675 million people. While its rivals are still a risk — Temu and TikTok's average monthly users grew more significantly in the second quarter — Sea is betting on new initiatives from digital finance to logistics to grow its dominance and convince investors of its growth potential.

One key operation is SPX Express, a logistics firm that Sea spent years building up. In Singapore, it delivers items mostly within a day, making the three-day delivery times of its rivals look lethargic.

And habits are changing. Take me for example. Last week, I found myself panicking after realizing that I was in charge of decorations at my uncle's 71st birthday party the next day. I had no time to run to the store. Fortunately, due to all the reporting I've been doing on Shopee and SPX Express over the past week, I understood how their operations worked. If I placed an order before 2pm, my items would probably be delivered before the party the next evening. I ordered a couple of aluminum balloons, party poppers and hats at noon and they were with me by morning the next day. That sort of convenience was probably why I thought it was alright to wait until the last minute to source supplies — from my office chair.

Whittling down delivery times is great, but what's unique to SPX Express is its intimacy. SPX Express has been employing people from the community to deliver packages to their neighbors. And it's taking off, as we write in our story here. By fall of 2024, Sea's logistics arm was delivering a majority of Shopee's packages.

Its rivals, including Ninja Van, are feeling the heat. The logistics startup, backed by Alibaba, is in talks to raise an internal round which will slash its valuation by about half as it struggles to find its edge against big players like J&T Global Express and SPX Express. Ninja Van also cut about 12% of its workforce this week, saying that it needs to streamline functions as it moves away from e-commerce logistics. While e-commerce is gaining popularity in the region, stiff competition and deep-pocketed players in the logistics industry are keeping profit margins slim. —Olivia Poh

Weekend Catch-Up

A selection of the best of Bloomberg storytelling, from podcasts and video to explainers and feature stories.

Read:

Singapore will allow more bars and nightclubs to jazz up the nightlife in Boat Quay
A new AI-driven program in Singapore is trying to tackle hay fever
Prabowo is shaking up Indonesia with a push to emulate China's rise
A forgotten battle taught one man everything about humanity

Watch:

Illicit Market Becomes 'Amazon for Criminals'. Watch it here.

Is time running out on Swatch?
Haslinda Amin interviews ComfortDelGro's Group CEO Cheng Siak Kian

Listen:

Hong Kong's IPO market is roaring back but that could be a problem
What's at stake at the Trump-Putin meeting
What happens now that Trump fired the BLS commissioner?
What's next in the US-China showdown over Nvidia and AMD chips?

Seized Luxury for Sale?

Singapore just appointed the local unit of Deloitte to manage the sale of more than 460 pieces of luxury goods confiscated from convicted money launderers, including several hard-to-get items such as Hermes bags and Patek Philippe watches. As soon as the announcement came on Tuesday, many in the city-state were asking themselves "where, how and when?"

Well, it's not clear yet. Deloitte will submit proposals for the sale of the assets in due course, Singapore's police told Bloomberg News, adding that auctions and direct-sales are being considered. The process will start when the government approves the proposals, the police said.

Singapore is set to sell luxury items confiscated in the country's biggest case against money launderers. Photographer: Ore Huiying/Bloomberg

In any case, the sale will raise funds for the city's coffers. In other countries, similar funds have been tagged to specific initiatives or to compensate victims.

In the US, such auctions may happen online, in person or by mail-in bids for items like furniture, artwork, jewelry and even planes and boats.

In Australia, a real estate agency was appointed earlier this year for the auction of a confiscated two-level, three-bedroom penthouse with views of the iconic Sydney Opera House, which raised A$15 million ($9.7 million). The proceeds were distributed, among other things, to crime prevention initiatives and other law enforcement measures.

If Singapore takes inspiration from France, we should expect a chic event.

In April 2023, the European country's Agency for the Management and Recovery of Seized and Confiscated Assets (Agrasc) teamed up with the National Directorate of State Interventions (DNID) to host an auction of seized goods at a public building that used to be a palace for French royalty back in medieval times. French law requires funds from the sale of goods confiscated in the fight against drug trafficking be donated to initiatives that combat drugs and addictive behaviors.

The Palais de Justice law courts in Paris, France, on Thursday, Nov. 22, 2007. Photographer: ALASTAIR MILLER

The authorities compiled a 63-page catalog for the sale with detailed information of all 277 lots. Items ranged from Christian Louboutin and Jimmy Choo shoes to Louis Vuitton bags and Rolex watches, divided in nine different categories that included vehicles, fashion and leather goods, gold and jewelry and watches.

A white Lamborghini Huracán, probably the most exuberant of them all, was strategically placed in front of the Palais de Justice, where the auction happened in the heart of the French capital. France's Justice Minister at the time, Éric Dupond-Moretti, attended the event, which raised close to €1.5 million ($1.8 million), according to a CNN story.

In Paris, the auction happened on a regular Tuesday afternoon. So if Singapore follows the same steps, you may need to consider taking a day off from work. —Filipe Pacheco and Low De Wei

The Review:

From the best spots for a business lunch to drinks with the boss, we sample the city's eateries, bars and new experiences.

Club Street Laundry bills itself as a modern Australian eatery – bold, raw and a little reckless. Chef Justin Hammond has had stints at Underdog Inn and Neon Pigeon, which should give you an idea of the sort of food you're in for. Its website states that dining should be fun, not fussy, and Club Street Laundry nails that brief.

Photographer: Club Street Laundry

The vibe. Set on a steep corner of Club Street, most of the restaurant is open to the road, with outward facing high bench seating making for great people watching, especially on a Saturday night. Being mainly open-air lends a more casual vibe. Wooden pegs (laundry, get it?) holding the serviettes in place add a playful touch.

Can you conduct a meeting here? You could, but it's probably not the ideal place. The seating is mainly side-by-side on high stools or along an internal bar counter. For grabbing a bite to eat with a glass of wine, it's perfect. Doing face-to-face business, not so much.

What about a romantic dinner? Yes, absolutely, and because Club Street Laundry feels quite informal with its open-air vibe, the relaxed atmosphere puts you instantly at ease. Head downstairs to Hup San Social Club, a cocktail bar in the basement, afterward. The subterranean space is teensy tiny, and the drinks are inventive.

Photographer: Club Street Laundry

What we'd order again. The hot and sour squid was a clear winner from the starters we tried, very lightly battered and so tender. The barbequed cauliflower and labneh had us asking for a spoon to scoop up all the goodness while the charcoal grilled sea bream with lemon caper sauce was decent. Probably the star of the evening came from the sides menu — the charred leek. Treated like a roast chook, they came sitting in a puddle of delicious chicken-y gravy.

Need to know. Club Street Laundry is at 98 Club Street. It's open Tuesday to Friday from 3 p.m. to midnight, and from 12 p.m. to midnight on Saturday. Closed on Sunday and Monday. Dinner for two without drinks costs around S$100. —Katrina Nicholas

Have a place you'd like us to review or feedback to share? Get in touch at [email protected].

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