Revenue earned by SME exporters in Singapore higher than global average: FedEx survey

SINGAPORE - Small and medium-enterprises (SMEs) here which sell to overseas markets generate more revenue compared with the global average, according to new research released on Wednesday (Jan 18).

A global study commissioned by FedEx Express on SME exporting trends found that Singapore SMEs which export to overseas markets make an average annual revenue of US$2.56 million (S$3.63 million), higher than the global average of US$2.4 million.

The findings were based on 9,000 interviews conducted across 17 markets. It surveyed 512 companies in Singapore.

The study also found that an average of US$2.21 million of Singapore SMEs' sales come from exports, accounting for as much as 87 per cent of their overall revenue. This is also ahead of the global average of US$1.5 million.

Malaysia, China and Indonesia are the top regional markets for Singapore SMEs, the survey found.

Survey respondents were optimistic about export prospects. SMEs expect intra-regional exports to grow 28 per cent in the coming year, and expect 25 per cent growth in inter-regional exports.

"As the research shows, engaging in cross-border trade to complement local business operations help Singapore-based SMEs maintain steady growth," said Mr Khoo Seng Thiam, managing director of FedEx Express in Singapore.

"For the foreseeable future, one critical enabler that will assist them in gaining broader access to overseas markets is e-commerce."

The poll found that 75 per cent of SMEs surveyed here generated revenue via e-commerce transactions.