Stripe report highlights digital trade's impact on Singaporean businesses

The report is based on transaction data generated from the Stripe platform as well as surveys with 1,700 business leaders and 11,500 consumers across nine global markets: Australia, France, Germany, Ireland, Japan, Mexico, Singapore, the UK, and the US. It depicts how technology is diversifying international trade routes and offers greater inclusion in the global economy for businesses of all sizes in Singapore.

Businesses and consumers look forward to a globalised economy

Despite macroeconomic hurdles, both businesses and consumers are optimistic about buying and selling more outside of Singapore. 84% of businesses are planning to expand into other countries by 2025, while 30% expect more than 75% growth internationally by 2028.

Although the path to international achievement is intricate, and the development of hyper-localised market expansion strategies required for this growth might be challenging to formulate and execute, businesses in Singapore report less constraints on their operations compared to earlier times. 59% think it is easier to run an international business now compared to 2018. Only 25% find it harder to do so.

This hype about the global economy also extends to consumers. 84% of Singaporeans are now open to buying physical goods cross-border, while 74% are open to buying digital services.

Digital trade facilitates entry to the global economy to all businesses

Digital exports are levelling the playing field and allowing businesses of all sizes—from single-person businesses to large and predominantly offline traditional enterprises—to access global markets. Globally, 81% of sole proprietor businesses now sell internationally, heralding the rise of ‘single-person multinationals’. 18% of these sell to more than 11 global markets.

At the other end of the business spectrum, large traditional enterprises—often with thousands of employees—are also leaning into cross-border expansion. From 2021 to 2022, there was a 61% growth in Singaporean enterprises selling internationally via digital channels on Stripe. Globally, 50% of enterprises plan to expand further internationally by 2025.

Traditional, offline industries—such as education—are also transforming in a digitized global economy. 88% of education businesses around the world currently sell internationally, and 70% plan to expand further by 2025.

Digital trade is creating more diversified international trade routes

Economic infrastructure for the internet means that businesses can participate in global trade, unrestricted by their geographic location. However, most businesses have barely begun to tap this potential.

While many of the fast-growing digital export routes are between neighbouring countries, there are striking exceptions. Ireland is one of the fastest-growing digital export destinations for both Australia and the UK, while Germany is one of the fastest-growing digital export destinations for both the US and France. Regarding Singapore, one of its fastest growing digital export markets for Singaporean businesses is Japan, with 60% year-on-year growth from 2021 to 2022.