Stripe, a financial infrastructure platform for businesses, today released a report based on three years of proprietary data that reveals the emergence of new digital export flows from four Asia-Pacific countries: Malaysia, Australia, Japan and Singapore.
The report analyzes the international sales of businesses on Stripe across the four countries and indicates the emergence of new digital export routes that are determined by global demand and market fit rather than traditional supply chain routes.
The report shows how digital platforms are transforming the economics of doing business across borders while creating new growth opportunities for all kinds of businesses.
Digital Exports Shift
The internet has made it possible for goods and services to be traded in different parts of the world in a matter of seconds, and given rise to entirely new business models. As digital cross-border sales increase, new digital export markets are emerging for businesses selling on Stripe in Malaysia:
- In terms of digital exports, Singapore has emerged as the biggest growth opportunity for businesses in Malaysia selling on Stripe in 2021, followed by the United States and Hong Kong.
- The United Kingdom is the fastest growing market for Malaysian businesses selling on Stripe, with a 280% growth in businesses selling to the country between 2020 and 2021.
Changing Malaysian Business Profile
While many young, digital-native companies desire to be global from day one, digital platforms are also reducing the barriers for traditional, non-digital-native companies from Malaysia to reap the benefit of new international audiences and buyers.
The number of non-digital-native enterprise and small and medium businesses (SMBs) selling internationally on Stripe from Malaysia grew by 94% between 2020 and 2021, ahead of the growth rate of digital-native businesses selling internationally 81% in the same period.
Business Transformation - Foundation For Growth
With the economic slowdown unfolding at different rates globally, digital trade is enabling businesses to seek out new customers in less impacted regions to ensure that sales are not interrupted. This is causing whole industries to transform. While some industries such as software are by their nature easier to buy and sell online, technology platforms are also making it possible for businesses in a wide range of industries to sell their products and services internationally.
In Malaysia, the top five industries that sold internationally online on Stripe in 2021 were merchandise, clothing & accessories, grocery stores, personal services, and business services.
Sarita Singh, Revenue Growth Lead, Southeast Asia, Stripe, commented: “International trade has played a critical role in the development of Malaysia’s economy. For many local businesses, particularly the micro, small and medium enterprises (MSMEs), technology has been the great equalizer and has opened the floodgates to opportunities beyond Malaysian borders.
Even as the macroeconomic uncertainty grows, the trend of digital exports provides an opportunity for businesses of all sizes to find new customers in less impacted regions. Working with financial infrastructure platforms such as Stripe enables businesses in Malaysia to be more efficient, adaptable and scalable in their global expansion in a wide range of countries, currencies, and local payment methods."
Flower Chimp, headquartered in Kuala Lumpur, is a great example of a business that has seized the cross-border opportunity, enabling Southeast Asian florists to serve customers across the region.
By using Stripe’s payments infrastructure, Flower Chimp has built a simple, secure checkout experience for its customers—wherever they are ordering from. Since working with Stripe, Flower Chimp’s conversion rate has increased from 2.5% to 8%, including a 37% boost to its mobile checkout conversion rate.