Singapore’s online businesses most globalized: Report

According to a survey conducted across 15 countries by Stripe, it was found that Singapore has the highest percentage of online businesses globally.

The report reveals that Singapore has 88 percent of online businesses followed by Japan at 86 percent. France came next at 84 percent. Other markets in the study included China, Britain, the United States, Germany, South Africa, Italy, Australia, the Netherlands, Spain, Mexico and India.

According to the report, more than half of Singapore businesses selling internationally had grown to new countries within their first year of operation.

The research also found that over the last five years, companies that grew internationally in their first year increased 141 percentage points more quickly in revenue and 15 percentage points more quickly in headcount than those that were slower to reach new markets.

While Singapore emerged as the most globalized, 61 percent of Singapore businesses maintain that international operations are a challenge now. About 50 percent of the survey respondents shared that regulatory barriers were the biggest hurdle, followed by increasing protectionism (45 percent) and government tariffs (45 percent).

In Singapore, close to 40 percent of online businesses selling internationally spend between $68,800 and $137,800 each year on compliance and complex regulatory issues, while a further 34 percent spend between $137,800 and $691,550. About 70 percent also said this expense has been rising.

For the 30 percent of Singapore businesses that find it easier to run an international business today, 75 percent cite technology as the critical reason, ahead of funding (42 percent), physical infrastructure (59 percent) and government support (45 percent).