Deloitte has unveiled a new report indicating that micro multinational companies (micro-MNCs) in the Asia Pacific (APAC) region are increasingly embracing digital technologies and prioritizing branding as they remain optimistic about cross-border e-commerce and digital trade.
The report, titled “Going Global: Seizing the Next Great Opportunity in Digital Trade,” conducted in partnership with WorldFirst, highlights APAC’s continued role as a key driver of global economic growth, even amidst global economic slowdowns, geopolitical tensions, and rising protectionism. The region’s trade in goods accounts for approximately 40% of global trade, reaching nearly USD 18 trillion—a 30% increase from USD 13.7 trillion in 2013. WorldFirst, a comprehensive digital payment and financial services platform, particularly supports SMEs engaged in international trade.
According to the report, 71% of surveyed micro-MNCs—businesses involved in cross-border e-commerce and digital trade—remain optimistic about the future of cross-border e-commerce in the coming year. This optimism reflects confidence in market demand, the policy environment, and technological advancements, with many companies anticipating significant growth in sales and profits.
Furthermore, 88% of surveyed companies emphasized the importance of branding for long-term business growth. Effective branding not only creates a competitive edge but also enhances customer loyalty and market share. As a result, 68% of businesses plan to increase their investment in branding.
The report also highlights policy initiatives in Singapore that have significantly reduced challenges for merchants and consumers in digital transactions. Notable initiatives include the enhanced SGQR+ payment scheme and the launch of the world’s first cross-border linkage of real-time payment systems, connecting PayNow with Thailand’s PromptPay and Malaysia’s DuitNow. These initiatives have encouraged more merchants to adopt digital payment methods, providing greater convenience for consumers and boosting digital trade growth.
Singapore, as a mature market, holds a strong position as a global commercial center and international logistics hub, consistently ranking high in global business environment indices. The country actively participates in the development of the digital trade system and reduces digital trade barriers through extensive trade partnerships. Although Singapore’s domestic e-commerce market is relatively small, its strengths in trade, transportation, and digital infrastructure make it a pivotal player in Southeast Asia’s digital trade landscape.
Enterprise Singapore reported a 66% increase in the number of Singaporean companies entering new markets for the first time in 2023, compared to 2019. This includes companies expanding overseas for the first time, as well as those with existing overseas operations that have ventured into new markets.
Cross-border businesses are increasingly seeking comprehensive platforms for payment and financial services
The Deloitte-WorldFirst report also reveals that more micro-MNCs are diversifying their business lines across multiple e-commerce marketplaces and establishing local operations in overseas markets, driven by intensified competition in cross-border e-commerce. This trend has led cross-border businesses to seek integrated payment and financial services providers.
As a result, cross-border payment firms like WorldFirst have evolved into one-stop platforms offering payment services, trade financing, and other financial solutions. These firms have also integrated supply chain services, including logistics, taxation, and advertising, to support various business scenarios for these merchants.
“WorldFirst is proud to collaborate with Deloitte to explore the opportunities and challenges facing today’s micro-MNCs. This report is designed to better support SMEs across the APAC region in leveraging the immense potential of cross-border digital trade,” said Clara Shi, CEO of WorldFirst.
Key global insights from the report include:
Big Data Analytics Leads Digital Technology Adoption
Big data analytics (75%) is the most prominent technology among micro-MNCs, followed by artificial intelligence (AI) (47%). These technologies are crucial for business optimization and enhancing customer experience. Payment and settlement technology (20%) and risk management (18%) also highlight the importance of security and stability.
Significant Growth in APAC’s Digital Trade
From 2017 to 2022, APAC’s annual growth rate in digitally deliverable services exports was 10.3%, surpassing the global average of 7.1%. Key export markets within the region include China, Japan, Singapore, and Australia, with the EU and North America being APAC’s primary external trading partners, accounting for 27% and 20% of the region’s export market, respectively.
The Deloitte-WorldFirst report introduced a new index to evaluate the digital trade environment and growth prospects in each country:
- High Potential Markets: Indonesia, Malaysia, Vietnam, Thailand, and the Philippines
- Mature Markets: Singapore, Japan, and South Korea
- Early-Stage Markets: Cambodia, Myanmar, and Laos
- Budding Market: Brunei
Deloitte’s research surveyed approximately 300 cross-border SMEs, typically with fewer than 500 employees, primarily based in East and Southeast Asia.
“Digital trade enterprises are leveraging leading-edge digital technologies such as big data analytics, AI, IoT, and cloud computing to forge innovative business models and value chains, enriching the global marketplace with a broader spectrum of goods and services,” says Cheng Zhong, managing partner of Technology, Media and Telecommunications Industry, Deloitte China. “Moreover, digital platforms—represented by cross-border e-commerce, are transcending space and time, fostering seamless collaboration across the global value chain.”
Echoing this sentiment, Lydia Chen, Deloitte China Research partner, adds, “The vast majority of SMEs are making a pivotal shift into cross-border e-commerce, leveraging platform enterprises, their expansive international service ecosystems, and digital technologies.”
