• bookmark
  • print
  • 0

  • share

    0

SG SMEs see int'l markets as key to growth plans

Singapore SMEs see international markets as the key to their growth plans, with 71% of respondents claiming that they are more likely to forecast growth revenue from international exports than from domestic business in the next five years, according to a study commissioned by FedEx Express (FedEx).


Publisher Image

Published by Questex Asia
on 15 Sep 2016

SG SMEs see int'l markets as key to growth plans

Singapore SMEs see international markets as the key to their growth plans, with 71% of respondents claiming that they are more likely to forecast growth revenue from international exports than from domestic business in the next five years, according to a study commissioned by FedEx Express (FedEx).

The independent study, titled "Global Opportunities: Examining Import and Export Trends Among Small Businesses," also reveals that only 41% of Singapore SMEs export to other markets. However, 67% of the respondents also believe that they will generate international revenue in five years’ time.

SMEs polled said that they view Central & South Asia as the regions with the greatest export potential followed by Europe and the Middle East.

The study’s figures demonstrated the significant revenue opportunities that exist across APAC for Singaporean SMEs, with the survey revealing that the country’s SMEs generate an average of $US 1.3 million per year from exports, lower than Hong Kong and Taiwan whose SME segments generate US$2.6 million and US$2.8 million respectively.

Despite this significant opportunity, many SMEs are still hesitant about targeting overseas markets.  Singaporean SMEs reported that they need more help in order to be more successful internationally.  A mere 14% of SMEs polled felt that they did not need any further support in order to expand and thrive on the international stage.

“Small businesses are a crucial part of the Singaporean economy, and this study illustrates how they can take the opportunity to reach markets beyond their own borders,” said Kevin O’Hearn, regional vice president of South Pacific, FedEx Express.  “Reinforcing the support they need will help enable SME’s to maximize the gains of venturing into overseas markets.”

Alongside a perceived lack of advice and support, Singaporean SMEs also cited other factors such as worries about potential costs (25%) and not getting paid (23%) as the main barriers to exporting internationally.

Logistics plays a vital role in tackling this confidence gap.  SMEs in Singapore ranked logistics providers as their top source of expertise on exporting, and SMEs in five out of six APAC markets rank logistics providers among their top sources.  A reliable logistics service provider plays an important role in connecting SMEs with overseas opportunities and shaping the experience that SMEs provide to their customers.

The study was conducted by market research consultancy Harris Interactive on behalf of FedEx Express to provide insights into global import and export behavior among SMEs and the challenges they face.

Last Modified Date: 18 Apr 2018