Deloitte has released a new report indicating that micro-multinational companies (micro-MNCs) in the Asia Pacific (APAC) region are increasingly embracing digital technologies and enhancing their branding efforts as they maintain optimism about cross-border e-commerce and digital trade.
The report, titled “Going-Global: Seizing the Next Great Opportunity in Digital Trade,” conducted in collaboration with WorldFirst, reveals that APAC continues to be a key driver of global economic growth despite challenges such as geopolitical tensions and rising protectionism. The region’s import and export trade in goods accounted for approximately 40% of global trade activities, totaling nearly USD 18 trillion—a 30% increase from USD 13.7 trillion in 2013.
The survey found that 71% of the micro-MNCs engaged in cross-border e-commerce are optimistic about future market conditions, reflecting confidence in market demand, policy environments, and technological advancements. Additionally, 88% of respondents acknowledged the importance of branding in sustaining long-term business growth, with 68% planning to increase their investment in this area.
The report also emphasizes the critical role of the Malaysian government in fostering digital trade growth, particularly through the Digital Free Trade Zone (DFTZ). This initiative involves collaboration among multiple departments and agencies, including the Ministry of Investment, Trade and Industry (MITI) and the Malaysia Digital Economy Corporation (MDEC), aimed at enhancing SME participation in cross-border e-commerce.
Malaysia is positioning itself as Southeast Asia’s data center hub, supported by government resources such as land, electricity, and favorable policies. This initiative is attracting global digital infrastructure leaders to establish data centers, while major cloud service providers continue to expand their investments in the country.
The Deloitte-WorldFirst report also notes that micro-MNCs are diversifying their operations, with many running multiple business lines and establishing local operations overseas due to increased competition. This trend has prompted these businesses to seek integrated payment and financial service solutions, leading cross-border trade payment firms like WorldFirst to transition into comprehensive platforms that offer various financial services, including trade financing.
Key findings from the report include:
- Technology Adoption: Big data analytics (75%) and artificial intelligence (47%) are the most widely applied digital technologies among micro-MNCs, emphasizing their importance in business optimization and customer experience.
- Growth in Digital Trade: From 2017 to 2022, APAC’s exports of digitally deliverable services grew at an annual rate of 10.3%, surpassing the global average of 7.1%.
- Market Assessment: The report categorizes markets based on growth potential, identifying Indonesia, Malaysia, Vietnam, Thailand, and the Philippines as high-potential markets, while Singapore, Japan, and South Korea are considered mature markets.
The research surveyed approximately 300 cross-border SMEs in East and Southeast Asia, revealing a significant shift towards cross-border e-commerce as businesses leverage digital technologies to innovate and enhance their global presence.
Deloitte’s findings underscore the evolving landscape of digital trade and the importance of technology in shaping the future of micro-MNCs in the region.
