DigitalCFO Newsroom | 20 October 2022
The report shows how digital platforms are transforming the economics of doing business across borders while creating new growth opportunities for all kinds of businesses in Singapore.
- The United States has emerged as the most popular international sales market for Singapore businesses on Stripe, followed by Australia and the United Kingdom
- Australia is the fastest growing market for Singapore businesses selling on Stripe, with 200% growth in businesses selling to the country between 2020 and 2021.
- The profile of Singapore businesses selling internationally is changing, with the number of “non-digital-native” businesses that sell abroad growing by 39% between 2020 and 2021, outstripping the growth rate of digital native businesses selling internationally (32%) in the same period.
Stripe, a global financial infrastructure platform for businesses, today released a report titled “Digital exports and shifting global trade in Asia Pacific”. Based on three years of proprietary data, the report analyzes the international sales of businesses on Stripe in Singapore, and indicates the emergence of new digital export routes that are determined by global demand and market fit rather than traditional supply chain routes. The report also shows how digital platforms are transforming the economics of doing business across borders while creating new growth opportunities for all kinds of businesses in Singapore.
Digital exports spur shift in global trade flows from Singapore
The internet has made it possible for goods and services to be traded in different parts of the world in a matter of seconds, and given rise to entirely new business models. As digital cross-border sales increase, new digital export markets are emerging for businesses selling on Stripe in Singapore:
- The United States has emerged as the biggest growth opportunity for businesses in Singapore on Stripe. This was the largest digital export market for Singaporean businesses selling on Stripe in 2021, followed by Australia and the United Kingdom.
- Australia is the fastest growing market for Singapore businesses selling on Stripe, with a 200% growth in businesses selling to the country between 2020 and 2021.
The profile of Singaporean businesses selling internationally is changing
While many young, digital-native companies are designed to be global from day one, digital platforms are also reducing the barriers for traditional, non-digital-native companies from Singapore to reap the benefit of new international audiences and buyers.
In fact, the number of non-digital-native enterprises and small and medium businesses (SMBs) selling internationally on Stripe from Singapore grew faster than digital-native businesses (39% vs. 32% between 2020 and 2021).
Business transformation as a foundation for growth in the face of economic uncertainty
With the economic slowdown unfolding at different rates globally, digital trade is enabling businesses to seek out new customers in less impacted regions to ensure that sales are not interrupted. This is causing whole industries to transform. While some industries such as software are by their nature easier to buy and sell online, technology platforms are also making it possible for businesses in a wide range of industries to sell their products and services internationally.
In Singapore, the top five industries that sold internationally online on Stripe in 2021 were merchandise, clothing & accessories, software, business services, and food & beverage.
Sarita Singh, Revenue Growth Lead, Southeast Asia, Stripe, commented: ”In today’s uncertain macroeconomic conditions, it is essential for businesses to take a long term view. A host of international opportunities are opening up for Singaporean businesses that are willing to look further and have the right tools in place to sell on a global scale. With robust financial infrastructure, local businesses are becoming more efficient, adaptable, and scalable in their global expansion. We’re pleased to be supporting forward thinking and ambitious businesses like MatchMove and Carousell in Singapore, and helping them drive success in the slowdown and future-proof their business.”
Read the full report.