1. Client : PayPal Country : Singapore
Publication : SMB World Asia Section : Internet
Date : 5 April 2013
Topic : Online exports boost growth of Singapore's SMBs during tough economic times
Viewership : 1,092 (daily)
URl: : http://www.smbworldasia.com/en/content/online-exports-boost-growth-
singapores-smbs-during-tough-economic-times
Online exports boost growth of Singapore's SMBs during tough economic times
By SMBWorld Asia Editors | Apr 5, 2013
Cross-border trade through e-commerce continues to see high growth rates in Singapore and
provides SMEs with new revenue streams in a wide range of online export categories, according to
PayPal, which has released data underlining Singapore’s success and potential in trading online with
the world and identifies online exports as an effective channel for local small and medium
enterprises (SMEs) to reach millions of consumers overseas and sell to the global marketplace.
PayPal data showed that PayPal merchants in Singapore grew their businesses significantly faster by
using cross-border e-commerce to export to Asia Pacific markets in 2012. For example, local PayPal
merchants increased their online export sales on average by 68% to China and by 55% to Hong Kong,
showing the growing importance of trade to the Greater China region. In addition, demand for
Singapore-made goods remained strong in the larger Asia Pacific markets as online export sales via
PayPal’s platform grew on average by 22% to Japan and 20% to Australia.
Non-oil domestic exports (NODX) in Singapore rose marginally by 0.5 per cent in 2012[1]. With over
154,000 SMEs accounting for 90% of all businesses in Singapore, they are expected to contribute
significantly to the country’s export trade flow. With total trade volumes from traditional export
channels in 2013 expected to remain flat, SMEs will need to find new sources of business growth
especially when faced with rising business costs.
While travel, computers and accessories and electronics are the top online export categories for
Singapore, entertainment and media, vehicles and accessories and toys and hobbies are also popular
categories and present new online export opportunities for local SMEs. As shopping on mobile
devices becomes more mainstream for consumers worldwide, fashion and jewellery are the most
popular categories for overseas mobile shoppers buying from Singapore PayPal merchants.

2. The high growth of online exports in Singapore can be attributed to savvy local small businesses
creating products and services which are in high demand for an international audience at
competitive prices, and offering the convenience of selling online to global buyers with secure
payment transactions. As we see the rise in the purchasing power of the Asian consumer, there is a
clear call to action for Singaporean SMEs to take advantage of these trends, and position Singapore
as an e-commerce trading hub in Asia.
More than simply enabling Singapore businesses to sell to an international audience, PayPal also
gives Singapore consumers the opportunity to shop online with PayPal merchants around the world.
Even though Singapore’s total imports saw a 3.2% growth in 2012, PayPal data reflects an
acceleration in overseas online shopping by Singaporeans in the past year. With a strong Singapore
dollar, local PayPal users continue to love shopping in the USA (14% growth) and China (15%
growth). However, the fastest-growing overseas shopping destinations include Japan (35% growth),
UK (32% growth) and Australia (32% growth), showing that savvy Singaporeans are willing to shop
around the world for the best deals online.
“Our data and insights clearly show that Singapore SMEs have a fantastic opportunity to reach out to
millions of consumers globally and aggressively expand into overseas markets through cross-border
e-commerce,” said Faraz Ahmed, General Manager, PayPal Southeast Asia and India. “Furthermore,
with recent government initiatives geared at supporting SMEs looking to expand beyond Singapore,
we believe there is no better time for them to capitalize on the high-growth online export channel,
especially during these tough economic times.”
Merchants like Manek-Manek Beads are leading this online exporting trend, making significant
headway around the world through cross border trade.
“What started as a hobby during retirement to share my passion for beading with everyone has now
grown to an online business that caters to customers from all over the globe. Almost 90% of our
transactions are made outside of Singapore,” said Helena Tang-Lim, The Manek Lady at Manek-
Manek Beads. She continues, “Today’s international customers demand convenience and speed
when purchasing online from a merchant they can trust. With PayPal as our globally-accepted
payment platform, we can confidently provide customers with a reliable and secure online checkout
experience, no matter where they are in the world.”