Referred to as “micro-MNCs”, 300 SMEs surveyed in the region were leveraging branding, AI, Big Data, cloud computing, to expand overseas
Based on a survey of around 300 cross-border small- and medium- sized enterprises* primarily based in East- and South-east Asia on trends in digital cross-border trading, several findings were drawn and released to the media by Deloitte and WorldFirst.
First, the Asia Pacific region (APAC) remains a key driver of global economic growth amid global economic slowdowns, geopolitical tensions, and rising protectionism, in that the region’s import and export trade in goods accounted for approximately 40% of global trade activities, reaching nearly US$18tn — a 30% increase from the US$13.7tn in 2013.
Second, 71% of the respondents from “micro-MNCs” indicated their organization was engaged in cross-border e-commerce and digital trade and they remained optimistic about the prospects of cross-border e-commerce over the coming year. Meanwhile, 88% of respondents indicated that they recognized that branding is a crucial activity in sustaining long-term business growth. Also, 68% of the respondents indicated plans to increase investment in this area of business development.
Other findings
The data highlighted one APAC country whose policy initiatives have “significantly reduced the challenges both merchants and consumers face in digital transactions”. Such initiatives include an enhanced QR code payment scheme, as well as their launch of the a cross-border linkage of real- time payment systems, connecting their PayNow payment system with Thailand’s PromptPay and Malaysia’s DuitNow. Additionally the country was given credit for its active participation in the construction of their digital trade system and the reduction of digital trade barriers through extensive trade partnerships.
Other key findings include:
- More micro-MNCs in the survey had begun to run multiple business lines, on more than one e-commerce marketplace, and set up local operations in overseas markets. Cross-border trade payment firms have responded to offer one-stop payment systems as well as trade financing and other financial services. They have also integrated upstream and downstream supply chain services, such as logistics, taxation, and advertising, to support the various business scenarios of these SME merchants.
- 75% of respondents cited using big data analytics, followed by 47% citing AI, in their business optimization and the customer experience enhancement tools. Also, 20% cited applying technological tools in payment and settlement, while 18% indicated leveraging risk management tools.
- Export markets within the APAC region include Australia, China, Japan and Singapore were ranked highly, while those in the European Union (27%) and North America (20%) stood out as APAC’s primary external trading partners. Markets in Indonesia, Malaysia, Vietnam, Thailand, and the Philippines were deemed as “high potential”, while those in Cambodia, Myanmar, and Laos were “early-stage markets”. The Brunei digital trading ecosystem was deemed a “budding market” amid the mature trading ecosystems of Singapore, Japan, and South Korea.
According to Cheng Zhong, Managing Partner (Technology, Media and Telecommunications Industry), Deloitte China: “Digital platforms — represented by cross-border e-commerce — are transcending space and time, fostering seamless collaboration across the global value chain.”
*defined here as “micro-multinational corporations” with under 500 employees. No profiles of respondent population and all the geographical locations involved were specified, other than “Asia Pacific”, including respondents in East- and South-east Asia.
