Small businesses in Singapore are facing challenges like rising costs and competition. Online exports through payment channels like PayPal can help them access new international markets. PayPal processed $145 billion in payments in 2012, with a quarter coming from cross-border trade. Singaporean small businesses saw strong export growth to Asia Pacific markets like China and Hong Kong through PayPal, with increases of 68% to China and 55% to Hong Kong. Popular export categories included travel, electronics, and accessories. One local bead jewelry business started using e-commerce and PayPal last year and now generates 90% of sales internationally.

1. Client : PayPal Country : Singapore
Publication : CIO Asia Section : Internet
Date : 5 April 2013
Topic : Online payment channel offers small businesses in Singapore growth
opportunities beyond their shores
Viewership : 2,282 (daily)
URl: : http://www.cio-asia.com/resource/internet/online-payment-channel-offers-small-
businesses-in-singapore-growth-opportunities-beyond-their-shores/
Online payment channel offers small businesses in Singapore growth opportunities
beyond their shores
Nurdianah Md Nur | April 5, 2013
Rising business costs, labour crunch and stiff competition from larger competitors are forcing Small
and Medium Enterprises (SMEs) in Singapore to find new markets and win new customers, and
online exports could be an answer to that.
According to Paypal, it processed US$145 billion of total payment volume in 2012 - a 22 percent
increase from the previous year - and cross-border trade accounted for a quarter of this figure.
Faraz Ahmed, general manager of Paypal Southeast Asia and India, said in a media briefing yesterday
that online merchants in Singapore saw robust growth in their exports to Asia Pacific markets in
2012.
This could be attributed to SMEs offering products and services that appeal to the international
audience at competitive prices, and offering the convenience of secure payment transactions via the
PayPal online payment channel.
Ahmed added that the demand for Singapore-made goods was the highest in China, followed by
Hong Kong; local merchants increased their online export sales by 68 percent to China and 55
percent to Hong Kong.
Figures of online export sales to other Asia Pacific markets were encouraging too: exports to Japan
and Australia increased by 22 percent and 20 percent respectively. These are based on PayPal's own
findings.
According to Ahmed, the top export categories from Singapore businesses offering online payment
methods include travel, computers and accessories, electronics, entertainment and media, vehicular
accessories, and toys and hobbies.

2. One successful local business that has taken advantage of PayPal's solution is Manek-Manek Beads,
founded by Helena Tang-Lim. It sells handmade bead jewellery designs.
According to Mrs Tang-Lim, she decided to embark on e-commerce last year to enable her business
to reach potential customers overseas. The move proved fortuitous, as today, 90 percent of sales
originate from outside Singapore.
Ahmed attributed the success of local online businesses to the fact that they have taken advantage
of the simple and secured payment and collection methods offered by PayPal.