Singapore SMEs beat APAC counterparts in export earnings

Their average annual revenue hit US$1.75m which is higher than the APAC average.

Small and medium-sized enterprises (SMEs) in Singapore that are engaged in exporting are the highest earners amongst their Asia Pacific counterparts in 2017, a study commissioned by FedEx revealed.

According to the study conducted by research firm Harris Interactive, Singapore SMEs generated the highest average annual exporting revenue of US$1.75m which is bigger compared to the US$1.21m average exporting revenue in APAC countries. Singapore SME exporters’ revenue accounted for nine in every 10 dollars of overall revenues.

SMEs in Singapore are also ahead of the curve in regards to intra-regional exports with 78% of them exporting to other markets in the APAC region. Harris Interactive said that this is higher than the regional average of 70%.

The study also showed that the thriving digital economy in Singapore pushes business growth amongst SMEs as they used e-commerce (78%), social commerce (65%), and mobile commerce (57%) for their business processes.

Moreover, the study noted that digital solutions seem to push SME export growth in Singapore as they adopt software automation (74%), mobile payments (62%), and big data/advanced analytics (59%).

“Cross-border trade continues to flourish in Singapore, with mobile and social commerce platforms making access to international markets easier than ever,” FedEx Express Singapore Audrey Cheong commented. “For that growth to continue, SMEs must continue to remain agile in seeking out new innovations to ensure a strong supply chain from end to end.”

Despite leaning into international trade, SMEs also feels the increasing challenge in exporting including customs procedures (52%), logistics (44%), and foreign currency exchange issues (42%), the study revealed.