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Tag: SMEs

  • Lazada, Shopee and TikTok Cut Fees to Save Thai SMEs 1.93B Baht

    Lazada, Shopee and TikTok Cut Fees to Save Thai SMEs 1.93B Baht

    Lazada, Shopee and TikTok Shop agreed to roll back gross profit commission fees for Thai small businesses to January 1 levels for six months starting December 1, 2026.

    The temporary reduction runs through May 31, 2027, and is projected to save 1.2 million merchants an estimated 1.93 billion baht in operating costs.

    Wattanasak Sur-iam, director-general of the Department of Internal Trade, stepped in after the three platforms raised merchant commissions three separate times since January 2026. Those rapid hikes gave vendors little time to reprice stock or recalibrate working capital. Under the settlement, the rollback caps Lazada gross profit fees between 7.50 per cent and 11.60 per cent, sets Shopee rates from 8.03 per cent to 13.91 per cent, and pegs TikTok Shop fees at 11.24 per cent to 17.66 per cent depending on the product category. Electronics are excluded from the fee relief.

    Thresholds and Bureaucratic Hurdles for Sellers

    Access to the lower fee schedule comes with rigid revenue ceilings. Individual sole traders must record annual sales below 1.8 million baht, while registered legal corporate entities qualify only if yearly turnover stays at or below 3.5 million baht.

    Relief is not automatic. Sellers must file applications directly with the Department of Business Development, provincial commerce branch offices or local administrative councils to secure the discounted commission tiers.

    That administrative layer creates friction. Thousands of small operators run informal operations across social networks and marketplaces, meaning operators who fail to register through government channels will continue paying post-hike commissions during peak holiday trading.

    Margin Battles Shift from Subsidies to Extraction

    For marketplace operators across Southeast Asia, the fee battle reflects a sharp pivot from subsidised user acquisition to aggressive take-rate monetisation. Platforms spent years burning cash on free shipping vouchers and merchant onboarding bonuses to lock in domestic market share. Now, parent groups want positive free cash flow, and raising commission rates is the fastest lever to pull.

    Thailand has become the sharp edge of this regional pushback. When marketplaces simultaneously raise commissions multiple times in a single calendar year, merchant margins vanish faster than consumer prices can adjust. By enforcing a temporary rollback, state regulators are checking platform pricing power without dismantling the underlying commission models.

    The policy hands independent suppliers temporary margin breathing room. It does not solve the long-term risk for vendors who remain entirely dependent on three dominant digital distribution channels.

    Antitrust Intervention Precedes Statutory Controls

    Regulatory pressure had been building before the commerce ministry stepped into negotiations. The Trade Competition Commission of Thailand previously pushed platforms to freeze gross profit increases for a six-month window from August 27, 2026 to February 27, 2027.

    Supree Thongpetch, chairman of the Thai Small and Medium Enterprises Council, argued the registration mechanism should push informal vendors into formal commercial frameworks to improve transparency. He noted, “The solution lies in finding a balance among all business operators, as we are part of the country’s shared commercial structure.”

    Commerce Minister Suphajee Suthumpun confirmed the relief plan serves only as a stopgap measure. Ministries are reviewing the draft Digital Platform Economy Act, which officials first assembled in 2025, to write permanent statutory controls over platform pricing, business conduct and service benchmarks.

    Permanent Pricing Rules Await February Deadline

    State agencies will continue gathering stakeholder feedback on the draft digital platform legislation until February 27, 2027. Commerce officials plan to present the final assessment framework governing ongoing gross profit fees before the end of February.

  • BIR Suspends QR-Coded Tax Badges for Online Sellers Ahead of Deadline

    BIR Suspends QR-Coded Tax Badges for Online Sellers Ahead of Deadline

    The Bureau of Internal Revenue (BIR) suspended its requirement for online sellers, freelancers, and content creators to display QR-coded tax registration badges on Monday, October 26.

    BIR Commissioner Charlito Martin Mendoza halted enforcement just five days before the scheduled October 31 compliance deadline, confirming that the agency will not penalize merchants for failing to display the badge during this indefinite suspension.

    Vendors who have already acquired the digital markers may still post them voluntarily, Mendoza noted, as authorities reconsider rules introduced in April to replace public Certificate of Registration (COR) postings.

    Halting the Digital Mandate

    The requirement was introduced in April as an alternative to displaying one’s full BIR Certificate of Registration (COR) online. The badge contains a QR code that customers can scan to verify whether an online seller or service provider is registered with the tax bureau.

    But what was supposed to make registration verification easier has since sparked debate that QR codes could expose personal information. The rollout was also marred by technical difficulties and confusion over who needed to comply.

    “We recognize that protecting personal information online presents different and more complex challenges than displaying a COR at a physical business establishment,” Mendoza said.

    The BIR said it would work with the National Privacy Commission and consult affected taxpayers before deciding how to proceed.

    Burden on Digital Commerce

    Economist and former finance undersecretary Cielo Magno welcomed the suspension but questioned why the requirement was necessary in the first place. Magno pointed out that the BIR already maintains taxpayer registration records and has other mechanisms for monitoring transactions.

    She argued that requiring another badge, without clear evidence that it would improve revenue collection, merely adds another administrative burden onto small online sellers and freelancers.

    “Instead of encouraging people to enter the formal economy, we risk giving them more reasons to remain outside it,” she said.

    Implementation Gaps and Next Steps

    Her criticism comes amid longstanding concerns over the Philippines’ complicated business regulations and excessive red tape .

    In its latest Business Ready assessment, the World Bank found that Philippine business regulations scored nearly as well as Singapore’s on paper, but the country lagged considerably in implementation. Registering a foreign firm in the Philippines takes 76 days, compared with just one day in Singapore, according to the World Bank.

    The international lender has also urged the government to simplify tax compliance, arguing that easier procedures can improve collection by reducing mistakes and encouraging taxpayers to comply voluntarily.

  • Thailand Caps Retail Credit Terms at 45 Days

    Thailand Caps Retail Credit Terms at 45 Days

    Thailand’s competition regulator has capped trade credit terms at 45 days for large retailers dealing with small suppliers, backing the rule with fines of up to 10 per cent of revenue.

    The Trade Competition Commission of Thailand (TCCT) issued the binding notification in the Royal Gazette this month, taking aim at wholesalers and retailers generating over 500 million baht in annual turnover across department stores, specialty shops, supermarkets, hypermarkets, cash-and-carry outlets and convenience networks.

    Under rules taking effect in November, payment windows between large retail operators and commercial, manufacturing or service SMEs cannot exceed 45 days unless a shorter schedule is agreed. For agricultural produce and basic processed farm goods, settlements must conclude within 30 days. Consignment terms start when agreed volumes sell in full, whereas standard shipments begin the cycle once deliveries arrive complete with proper documentation.

    Violators of this notification could face a fine of up to 10% of their revenue in the year in which the offence occurred, or up to 1 million baht if the offence occurs during their first year of operation.

    Investigating Encroachment on Franchisees

    Beyond payment terms, the TCCT is deploying investigative teams to Phetchaburi and Lampang provinces to inspect convenience store networks and traditional mom-and-pop grocers. Evidence gathered through the regulator’s Mobile Competition Clinic revealed parent chains frequently open company-owned corporate outlets directly beside existing franchisees, cannibalising store traffic after collecting upfront licensing fees.

    Retail operators told authorities that extra units meet high local shopper density that single stores cannot serve. Pol Col Songsak Raksaksakul, vice-chairman at the TCCT, dismissed the contractual defense during preliminary hearings.

    Even if contracts allow this practice, the fairness of such agreements is questionable under fair-trade principles, Pol Col Songsak noted.

    The commission is also scrutinising whether dominant supermarket operators abuse consignment arrangements. Multiple SME groups reported that after their packaged items established strong sales on modern trade shelves, chains launched copycat house-brand alternatives, while the TCCT is examining whether unilateral changes to product shelf positions constitute an unfair trade practice.

    Pressure on Working Capital Models

    Thai retail chains have long operated by funding store rollouts through supplier credit. Forcing payments out within 30 to 45 days removes cheap short-term financing that supported rapid network expansion across provincial capitals. Chains must now decide whether to reallocate working capital or prune marginal product lines to keep cash conversion cycles tight.

    Suppliers gain needed balance sheet relief, but small brands risk immediate pushback from category managers. Supermarket buyers faced with strict payment liabilities often rationalise stock keeping units, favouring larger multinational consumer goods conglomerates that supply higher volumes and absorb rebate deductions without dispute.

    Zoning and Local Sourcing Mandates

    The field investigations in Phetchaburi and Lampang wrap by late November, alongside focus groups scheduled early in the month to measure consumer and merchant sentiment. Data from those sessions will shape an enforceable retail code of practice and feed policy guidance to urban planning authorities and local administrative organisations.

    The Turn from Voluntary Guidelines

    The statutory credit notification replaces voluntary terms that big retailers routinely bypassed. TCCT commissioner Warawan Chitaroon said that while the watchdog published voluntary guidelines previously, extended payment delays persisted because corporate buyers faced no statutory teeth. Formal publication in the Royal Gazette converts credit schedules from advisory best practices into enforceable law.

    The statutory credit rules take effect in November, while the TCCT plans consultations with retail operators before drafting the formal code of conduct on store positioning and franchising practices.

  • Malaysia Allocates RM1 Million to Help Startups Tap Bank Loans with Patents

    Malaysia Allocates RM1 Million to Help Startups Tap Bank Loans with Patents

    Malaysia launched a RM1 million valuation fund on Wednesday. The money will help at least 50 small businesses and startups secure bank loans using intellectual property as collateral.

    The Intellectual Property Corporation of Malaysia will manage the pilot program. It covers upfront valuation costs for patents, trademarks, and proprietary technology required by commercial lenders.

    How the valuation subsidy operates

    Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali introduced the facility at the National Intellectual Property Conference and Exhibition in Kuala Lumpur. Tech startups, software developers, and brand creators face frequent loan rejections. Their balance sheets carry intangible property rather than physical land or factory buildings.

    Appraisal fees typically run into thousands of ringgit per filing. By absorbing these costs, the ministry aims to create a pipeline of bank-ready assets. The intervention ties directly into an earlier RM10 million pilot debt scheme established with Malaysian Industrial Development Finance and the World Intellectual Property Organisation.

    “Active participation by commercial banks in adopting this new financial instrument is critical to creating opportunities for more local entrepreneurs. The RM10 million pilot project allows IP to be pledged directly as collateral, providing faster access to financing,” he said.

    Why commercial lenders stay cautious

    Commercial banks across Southeast Asia remain cautious lenders. Most risk models penalize unlisted tech assets. Secondary markets for liquidated software code and regional brand registrations lack clear pricing data.

    To address that structural gap, the government rolled out an accredited training curriculum called the IP Valuation Module. Certified domestic valuers will standardize asset assessments. Over time, that should lower private appraisal fees and reduce credit committee discounts on proprietary commercial assets.

    Mounting cash pressures on local operators

    Local enterprises face severe margin compression across manufacturing, retail, and tech services. Official labor figures recorded 42,000 job losses in the first half of the year, with 17,485 cuts linked directly to corporate downsizing. A Department of Statistics survey showed 68.1 per cent of businesses expect second-half gross revenue to stay flat or contract, squeezed by elevated shipping, energy, raw material, and compliance overheads.

    Retailers and digital brands also contend with steep price competition from cross-border low-value goods entering local marketplaces. Pledging registered intellectual property for working capital offers an alternative to equity dilution or high-interest unsecured borrowing.

    Execution targets under the national plan

    This initiative ties into the 13th Malaysia Plan and the MyIPO NextGen Strategic Transformation Plan through 2030. Both policy roadmaps require state agencies to convert public and private research spending into revenue-generating commercial entities.

    MyIPO closed the two-day conference by signing cooperation agreements with several international agencies to recognize local asset registrations across export destinations. The agency will monitor credit disbursements from the initial RM10 million loan pool through late 2026 before expanding the valuation subsidy to larger enterprise categories.

  • Thai Floods Hit 4,500 Factories Causing 2.14 Billion Baht in Damage

    Thai Floods Hit 4,500 Factories Causing 2.14 Billion Baht in Damage

    Floods across Thailand damaged 4,523 factories in 55 provinces, generating an estimated 2.14 billion baht in losses, Industry Minister Varawut Silpa-archa said on Tuesday.

    Small and medium-sized enterprises bore the brunt of the disruptions, accounting for 4,113 of the flooded sites.

    Established industrial operators accounted for 316 damaged plants, while 94 community enterprises also suffered flood losses. The Industrial Estate Authority of Thailand reported that between 180 and 190 plants located within formal industrial estates took hits, accumulating between 1.7 billion and 1.8 billion baht in physical and operational damage.

    Breakdown Across Industrial Zones

    Industrial estate operators absorbed the vast majority of financial losses despite representing a smaller fraction of the total site count. The concentration of high-value machinery and automated production lines inside managed zones drove up the repair bill relative to dispersed workshops.

    For consumer goods manufacturers and regional supply networks, prolonged shutdowns at tier-two and tier-three SME suppliers create immediate component shortages. Production stoppages ripple directly into wholesale distribution channels across Southeast Asia when small packaging, plastic moulding, and parts fabricators go offline simultaneously.

    State Assistance and Debt Relief

    The Industry Ministry is preparing targeted financial relief for affected facilities. Officials plan to approach commercial lenders and state banks to secure debt moratoriums alongside concessional loans dedicated to site rehabilitation and equipment repairs.

    Factories that suffered complete operational shutdowns will receive prioritized state support. Industrial works inspectors are also rolling out mandatory post-flood safety guidelines to evaluate electrical grids and structural integrity before sites resume output.

    Supply Chain Risks and Recovery Steps

    Thailand’s manufacturing base remains vulnerable to seasonal monsoon surges that overwhelm drainage networks outside central industrial corridors. While major multinational plants inside ring-fenced estates have permanent flood barriers, peripheral SME supply clusters often lack dedicated dykes and pumping infrastructure.

    Commercial banks and ministry inspectors are now evaluating the 4,523 damaged facilities to determine exact capital requirements before loan packages roll out to affected operators.

  • World Bank Urges Thailand to Lift 12% AI Adoption Rate for 2037 Goal

    World Bank Urges Thailand to Lift 12% AI Adoption Rate for 2037 Goal

    Thailand must lift its corporate artificial intelligence adoption beyond the current 12 per cent rate to hit high-income status by 2037, according to the World Bank.

    Only about one in eight Thai businesses currently deploys AI tools, despite recent data centre investments and an established electronics manufacturing base. Speaking at the Bangkok Business Summit, World Bank vice-president for East Asia and Pacific Carlos Felipe Jaramillo warned that commercial adoption remains too concentrated among large corporations in the capital.

    Closing the SME technology gap

    Small, medium and micro-enterprises outside Bangkok account for the bulk of employment but lag in digital capabilities. The multilateral lender presented its “Building Thailand’s Future Today” report at the summit, hosted by the Joint Standing Committee on Commerce, Industry and Banking, setting out reforms for enterprise competitiveness.

    Thailand spends roughly 1 per cent of gross domestic product on research and development. Across the East Asia-Pacific region, that average sits at 2.5 per cent. World Bank senior economist Katherine Stapleton said closing that divide requires redirecting state R&D incentives toward smaller firms rather than limiting innovation programmes to top-tier conglomerates.

    RetailNews Asia notes that enterprise technology providers across Southeast Asia face a similar bottleneck: high digital consumer penetration alongside sluggish software uptake inside merchant supply chains. While Bangkok ranks among the region’s most connected consumer markets, commercial software integration across provincial retail and logistics networks remains sparse.

    Raising growth targets

    Meeting the government’s 2037 high-income target will require annual real GDP growth to jump to 5.4 per cent per person. Thai economic expansion has averaged 2.2 per cent per person since the pandemic.

    Exports generate roughly 70 per cent of Thailand’s gross domestic product, yet foreign direct investment continues to generate weak spillover gains for local suppliers. The World Bank argues that upgrading domestic software capabilities and fostering regional commercial hubs will determine whether the economy escapes middle-income stagnation.

    The Joint Standing Committee and state planning agencies are now reviewing corporate tax breaks and startup development programmes ahead of the next fiscal policy cycle.

  • Siem Reap Trade Fair Opens Commercial Pathways for Local Producers

    Siem Reap Trade Fair Opens Commercial Pathways for Local Producers

    A regional trade fair in Siem Reap opened commercial channels for provincial producers seeking access to wider consumer markets. The event connects makers of domestic goods directly with retailers, wholesalers and hospitality buyers across Cambodia.

    Producers presented packaged food, agricultural goods, textiles and handicrafts to commercial buyers seeking local inventory. Direct exhibition formats give regional enterprises access to store shelves and hospitality supply chains without intermediary distributor markups.

    Connecting Provincial Goods to Supermarket Shelves

    Organisers built the platform to address distribution bottlenecks that often keep provincial goods out of modern retail networks. Direct contact with procurement managers allows suppliers to negotiate order volumes, adjust packaging and meet quality standards required by national store chains.

    Similar trade exhibitions across secondary cities in Southeast Asia have helped regional craft and food producers secure stable supermarket listings. Modern grocery operators and hotel groups in Cambodia face persistent demand for verified local products from domestic shoppers and international visitors.

    Expanding Domestic Supply Chains

    Retail chains and hospitality buyers face higher logistics costs on imported packaged goods, accelerating demand for dependable domestic alternatives. Local suppliers use the exhibition platform to align barcoding, packaging durability and batch sizes with formal retail criteria.

    Participating vendors are now fulfilling wholesale orders secured during the event as provincial trade organisers prepare follow-up sourcing sessions for the coming retail quarters.

  • CelcomDigi Debuts Sophia AI to Automate SME Workflows in Malaysia

    CelcomDigi Debuts Sophia AI to Automate SME Workflows in Malaysia

    CelcomDigi rolled out an agentic artificial intelligence platform called Sophia AI in Malaysia, targeting operational bottlenecks across retail, supply chain, and small-business operations. The carrier developed the tool after testing more than 400 internal automations across its own corporate workflows.

    Unlike simple conversational bots, agentic AI operates autonomously across connected business systems. The platform executes multi-step tasks, flags processing exceptions, and updates enterprise software without requiring manual intervention from staff.

    Automating Retail and Supply Chains

    For retail and wholesale distribution networks, the platform takes over the invoice-to-payment cycle. Sophia AI reads supplier invoices, validates billing data against purchase orders, routes payment approvals, and updates accounting records across multi-store operations.

    CelcomDigi also designed the architecture to handle procurement and inventory tracking in manufacturing, appointment scheduling and claims processing in healthcare, and document verification for public sector agencies. Businesses can adjust the tool to match their existing infrastructure rather than overhauling internal software systems.

    “Our focus now is helping other organizations, particularly SMEs, achieve the same benefits,” said T. Kugan, chief enterprise business officer at CelcomDigi. “With our agentic AI solution, we can successfully eliminate repetitive administrative tasks while empowering employees to devote time on higher-value work.”

    Closing the Enterprise Adoption Gap

    Regional telecom operators are pitching automation software directly to commercial clients to grow enterprise revenue beyond standard mobile connectivity. Similar rollouts by Singtel in Singapore and HKT in Hong Kong show carriers bundling proprietary software with 5G data pipelines and cloud hosting.

    Adoption among smaller merchants remains uneven. Findings from Malaysia’s Ministry of Finance Economic Outlook 2026 report show SMEs struggle with artificial intelligence deployments because of unclear returns on investment and software tools built only for large corporations. CelcomDigi is pairing Sophia AI with its enterprise data, cloud, and cybersecurity bundles to lower onboarding friction for smaller accounts.

    Commercial rollouts for Malaysian enterprise clients begin immediately through CelcomDigi’s business division.

  • Cambodia Boosts Food Safety and Export Potential with Singaporean Partnership

    Cambodia Boosts Food Safety and Export Potential with Singaporean Partnership

    Phnom Penh is taking significant steps to elevate its food safety and processing capabilities through a new collaborative training initiative. The Ministry of Industry, Science, Technology and Innovation (MISTI) in Cambodia, in partnership with the Embassy of Singapore, has commenced a five-day program designed to improve food safety, boost agro-processing, and help Cambodian businesses produce export-ready, high-quality goods.

    This initiative, held at the Cambodia-Singapore Cooperation Centre, provides specialized training for Cambodian officials. The curriculum focuses on essential areas such as food safety management, preservation techniques, value addition, and sustainable production practices, aiming to strengthen the country’s food sector from farm to market.

    Strengthening Consumer Trust And Market Competitiveness

    Minister of Industry, Science, Technology and Innovation Hem Vanndy emphasized that robust food safety systems are vital for protecting public health and fostering consumer confidence. Such improvements also play a crucial role in enhancing the competitiveness of both industrial players and small and medium-sized enterprises (SMEs) within the market. Vanndy noted that investing in food safety safeguards consumer well-being today and bolsters Cambodia’s long-term reputation and economic future.

    The minister highlighted key priorities, including reducing post-harvest losses, adopting modern processing and packaging technologies, adhering to international standards, and promoting resource-efficient production methods. These efforts are expected to support Cambodia’s economic transition from basic production towards higher-value manufacturing, opening new avenues for local producers to reach regional and international consumers.

    A New Phase of Bilateral Cooperation

    Steven Pang Chee Wee, the Ambassador of Singapore to Cambodia, stated that this training program was developed specifically to address MISTI’s priorities, marking a new chapter in bilateral capacity-building cooperation. This marks the first customized course under the Singapore Cooperation Programme to be hosted at the Cambodia-Singapore Cooperation Centre, setting a precedent for future tailored collaborations between the two nations.

    The ambassador acknowledged Cambodia’s abundant agricultural output, noting that it presents considerable opportunities for increased value creation through enhanced processing, preservation, and food safety protocols. The course also supports MISTI’s broader objective of strengthening Cambodia’s National Quality Infrastructure, encompassing standards, metrology, accreditation, and laboratory testing. This systematic approach will help local micro, small, and medium enterprises improve product quality, enabling them to better access regional and international markets. The Cambodia-Singapore Cooperation Centre, established in 2002 and upgraded in 2018, has already provided capacity-building programs to over 19,000 Cambodian government officials, underscoring the long-standing partnership.

    RetailNews Asia notes that improving food safety and processing capabilities is a common strategy across Southeast Asia to boost agricultural exports and strengthen domestic consumer confidence. Similar initiatives have been seen in Vietnam and Thailand, where robust standards are essential for tapping into high-value markets. For retailers and F&B businesses operating in Cambodia, this move promises a more reliable supply chain of locally sourced, higher-quality products, potentially reducing import reliance and supporting local producers.

  • APAC SMEs Eye European Trade Boom: FedEx Survey Unveils Surging Confidence & Growth Trends

    APAC SMEs Eye European Trade Boom: FedEx Survey Unveils Surging Confidence & Growth Trends

    Federal Express Corporation, a global leader in express transportation, has released the findings of a survey focusing on trade lane trends between the Asia Pacific (APAC) and Europe. The study illuminates the main drivers and obstacles to cross-border trade.

    Survey Details and Findings

    The survey, carried out in September 2025, gathered responses from 850 small- and medium-sized businesses (SMEs) across 13 APAC markets and over 1,200 SMEs across nine European markets. The study sought to understand business sentiment, readiness, and challenges in the context of cross-border expansion among APAC firms looking towards Europe and European firms eyeing APAC.

    The results show a significant upswing in European trade among APAC SMEs, with 76% of respondents noting elevated export volumes over the previous year. The United Kingdom (42%), Germany (40%), and France (38%) were identified as the chief markets propelling business growth.

    European SMEs also displayed strong confidence, as 87% of businesses are tilting their trade balance in favor of the APAC region or maintaining their current levels. China (55%), Japan (36%), and South Korea (24%) were identified as the top growth markets for the next two years. Importantly, this mutual optimism among SMEs mirrors the broader market dynamics, as the Asia–Europe trade lane witnessed thirty consecutive months of growth up to August 2025, underlining the impressive growth momentum in this critical business corridor.

    Trade Lane Developments and Challenges

    The escalation in Asia-Europe trade is attributable to several key factors. In the APAC region, robust consumer demand in Europe, better price competitiveness for Asian products and services, and strategic expansion opportunities have been instrumental, with 68% of participants attributing growth to these elements. A notable 85% of APAC businesses plan to inaugurate or expand trade with Europe in the next 12–24 months.

    Conversely, European businesses are attracted to APAC due to strategic potential, comprehensive logistics solutions, and favorable trade agreements. Despite the strong interest from both APAC and European SMEs to broaden cross-border trade, they also recognize the hurdles that lie ahead. Changes in regulations, intricate customs procedures, and worldwide market volatility are major apprehensions, affecting 86% of APAC SMEs and 78% of European SMEs.

    To address these issues, SMEs are exploring solutions. 30% of APAC and 41% of European firms are seeking digital tools to enhance supply chain visibility, simplify shipping, and decrease delivery times. Moreover, 27% of APAC and 41% of European SMEs are calling for improved customs expertise to steer through shifting regulations, avert delays, and manage costs effectively.

    Supporting Asia-Europe Trade

    Salil Chari, senior vice president, Marketing and Customer Experience at FedEx, Asia Pacific, asserted, “In the face of ongoing changes in global trade, it’s heartening to witness APAC and European SMEs exhibiting strong confidence in expanding along the Asia–Europe trade corridor. At FedEx, we’re aiding our customers to unlock their next growth phase by combining the reach of our global network, the strength of digital innovation, and our profound trade expertise, helping them trade smarter, more efficiently, and with greater confidence.”

    To bolster the growing trade, FedEx added five weekly flights connecting Asia to Europe during this month. Additionally, FedEx improved connectivity between Vietnam and Europe, lessening shipment time by one day. FedEx currently operates 26 weekly flights connecting APAC shipments to Europe, ensuring express shipments reach major European destinations within 48 hours.

    FedEx’s integrated air-and-road network, one of the fastest in Europe, guarantees swift deliveries across the region. With logistics hubs in Paris, France, and Liege, Belgium, the network supports over 550 pick-up and delivery stations across 45 countries and territories, sorting more than two million packages daily.

    FedEx also provides a wide array of smart digital solutions and specialized trade expertise to simplify cross-border trade. Their tools allow customers to streamline customs declarations by uploading Electronic Trade Documents digitally, track clearance status through the FedEx Import Tool, and access the FedEx Go-To Europe Hub – a platform with multimedia resources, trade guidelines, and local market insights.

    Questions & Answers

    What percentage of APAC SMEs reported an increase in export volumes to Europe over the past year?
    76% of APAC SMEs reported an increase in export volumes to Europe over the past year.

    What are the main concerns for SMEs conducting business across borders?
    Regulatory shifts, complex customs procedures, and global market volatility are major concerns for SMEs conducting business across borders.

    What measures has FedEx taken to support the growing trade between APAC and Europe?
    FedEx has added five weekly flights connecting Asia to Europe, improved connectivity between Vietnam and Europe, and offers a suite of smart digital solutions and specialized trade expertise to facilitate cross-border trade.

  • Revolutionizing Global Commerce: Ant Group’s Vision for AI-Driven Financial Tools for SMEs

    Revolutionizing Global Commerce: Ant Group’s Vision for AI-Driven Financial Tools for SMEs

    Eric Jing, Chairman of Ant Group, recently presented his vision for propelling small-to-medium-sized enterprises (SMEs) into the next level of productivity at the Singapore FinTech Festival. He posited that artificial intelligence (AI)-driven financial tools and tokenised transactions would fundamentally transform how SMEs function and compete on a global scale.

    AI-Driven Transformation for SMEs

    Jing highlighted Ant Group’s dedication to equipping SMEs with AI-driven payment and operational tools. He believes the tools will position companies to reap the rewards of an upcoming global productivity boom. Jing expressed his belief that frontier technology can significantly foster inclusion and support SMEs.

    Singapore: A Global Hub for Growth

    Ant International, which became autonomous in 2024, has its headquarters in Singapore. It collaborates with over 1,400 institutional partners and its global payment and digitalisation network caters to 150 million businesses. The network also links QR-based wallets reaching more than 1.8 billion consumer accounts worldwide.

    Expectations for AI-Driven Finance

    Jing forecasts an increase in personalised AI financial advisors for consumers and an accelerated shift toward agentic commerce for businesses. He predicts the latter will be driven by autonomous systems capable of managing comprehensive payment and operational tasks. Jing believes that AI agents could be instrumental in helping SMEs that struggle with the complexities of the global trade environment.

    AI Tools Enhancing Efficiency for SMEs

    Antom, the merchant services division of Ant International, is already leveraging AI with Antom Copilot. This tool streamlines payment integration, onboarding, risk settings, and chargeback management. According to Ant International, Copilot reduces integration time by over 90%, improves winning rates for chargebacks by three percentage points, and cuts resolution time by 46%.

    Antom also recently launched EPOS360, an integrated application that combines POS systems, payments, banking, lending, and growth support into one platform. This tool is designed to help micro, small, and medium enterprises (MSMEs) expand more efficiently. Jing depicted these AI agents as virtual Chief Operating Officers (COOs) and Chief Financial Officers (CFOs) that serve as planners and implementers for SMEs.

    Emergence of Multi-Agent Systems

    Jing stressed that autonomous multi-agent systems capable of executing complex transactions are not just theoretical but are already becoming a reality. He maintained that these systems will form the backbone of the next phase of global digital commerce, especially for SMEs operating internationally.

    Jing underscored the importance of tokenisation of money as a key facilitator of real-time global transactions, especially for companies engaged in international trade. He also emphasised the importance of policy guidance from regulators.

    Trials in Tokenised Money

    In the context of Project Guardian, Ant International has taken part in pilot programmes involving tokenised money and cross-border transactions. These trials have illustrated how blockchain-based payments can provide real-time transparency and credibility to SMEs operating globally.

    Through the Monetary Authority of Singapore’s (MAS) PathFin.ai initiative, Ant International is also sharing its expertise on AI implementation. Jing highlighted the company’s Falcon Time-Series Transformer, an 8.5-billion-parameter model for FX and liquidity forecasting, which has contributed to significant improvement in cash-flow prediction accuracy and reduced hedging costs for businesses.

    Questions & Answers

    What is Ant Group’s vision for SMEs?
    Ant Group aims to equip SMEs with AI-driven financial tools and other operational aids to boost their productivity and global competitiveness.

    How is Ant International leveraging AI for SMEs?
    Ant International uses AI through tools like Antom Copilot and EPOS360 to streamline payment integration, onboarding, risk settings, and chargeback management, making these processes more efficient for SMEs.

    What are the benefits of tokenised money for SMEs?
    Tokenised money can facilitate real-time global transactions, providing transparency and credibility for SMEs that operate internationally. Through blockchain-based payments, SMEs can gain a competitive edge in the global market.

  • FedEx report: Micro-business boom in APAC

    FedEx report: Micro-business boom in APAC

    Micro-multinational businesses in the Asia Pacific are experiencing a business boom, according to new FedEx research.

    Its study shows that 63 per cent of these businesses are achieving annual revenue growth, a success rate achieved by only half of small- to medium-size enterprises (SMEs).

    A previous study last year revealed the greater potential for business growth among SMEs that export goods to overseas markets compared to those that do not. Taken together, the two studies underscore the business benefits of export markets generally, either through simple exports or, like the micro-multinationals in the latest study, by establishing a more direct presence.

    Conducted in September by Harris Interactive for FedEx Express, the study examined trends and characteristics among micro-multinationals, a subset of SMEs that either set up with a presence in multiple markets, or leverage online business platforms and the increased openness of the global economy to expand into overseas markets.

    Another key finding was that APAC micro-multinationals have a marked preference for markets within the region. Other APAC markets make up six of the top eight overseas markets targeted by APAC micro-multinationals, with China topping the list of markets with a micro-multinational presence.

    “We’ve long believed that businesses don’t need to be big to be global, and this study confirms that small businesses that have established a presence in other markets are seeing this strategy pay off substantially,” says FedEx Express Asia Pacific president Karen Reddington.

    “Asia Pacific micro-multinationals have overwhelmingly chosen to set up in other Asia Pacific markets, strengthening regional interconnectivity and driving growth in the intra-Asia trade corridor, the world’s fastest-growing international trade lane. This will translate into job creation, a more efficient pipeline for goods and services and, ultimately, economic growth across the region.”

    As well as accelerated growth opportunities, APAC micro-multinationals believe their presence in multiple markets provides other advantages unavailable to SMEs in a single market. These include access to lower-cost workers (46 per cent), lower overheads (37 per cent) and the availability of different skill sets (36 per cent).

    Also, 63 per cent of micro-multinationals say that running a business in multiple markets is easier than it would have been even five years ago, while 19 per cent do not even believe this would have been possible for them then.

    Harris Interactive used a mix of telephone and online interviews to survey 595 senior decision-makers in micro-multinational companies (companies with 1-249 employees based in more than one country). The research covered 12 global markets across four regions.

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  • Indonesia provides free domain names for SMEs

    Indonesia provides free domain names for SMEs

    The Communications and Information Ministry is trying to propel small and medium enterprises (SMEs) into regional and global markets, by providing free domain names to help them take advantage of the country’s growing e-commerce sector.

    The government will provide the free domain names to about 8 million SMEs in all parts of the country until 2020, Communications and Information Minister Rudiantara said on Wednesday.

    In the first stage, the ministry would provide free domain names to 1 million SME customers of stateowned Bank Rakyat Indonesia (BRI) by 2018, he said. The ministry, in partnership with BRI, has also developed a digital platform for SMEs.

    “We want to speed up the [1 million free domain name] program and BRI has a lot of SME customers,” Rudiantara said on the sidelines of the signing of the memorandum of understanding (MoU) in Jakarta, adding that that it might collaborate with other companies if necessary.

    Under the current cooperation with BRI, the SMEs will be given a free domain name for a year. At present, a commercial domain name in Indonesia costs between US$10 and $20 a year.

    BRI president director Asmawi Syam said the free domain would directly involve SMEs in the e-commerce business and expand their market, while the digital platform would help transform the SMEs which are the backbone of the Indonesian economy.

    Currently, BRI has 9.5 million SME debtors in total. The program, launched in August, has managed to facilitate free domain names for 5,000 of them. As of September, BRI’s outstanding loans to SMEs stood at Rp 397 trillion ($30.4 billion).

    According to data from the Central Statistics Agency (BPS), there are more than 54.5 million SMEs in Indonesia. Accounting for around 60 percent of the country’s gross domestic product (GDP), they provide jobs for almost 99 percent of Indonesian workers.

    BRI consumer banking director Sis Apik Wijayanto explained that not all of the lender’s clients in the SME segment would participate in the program, as it was only aimed at companies with good business prospects.

    The domain names, he further said, would allow them to sell their products nationwide and even abroad.

    “If they are growing, it will be also good for BRI. When they have wider market, their turnover will increase and they will need bigger financings or loans from BRI to expand their business,” Sis said.

    The ministry’s target of 1 million domain names, he added, could be easily achieved due to the large number of BRI’s SME customers.

    The lender has been disseminating information related to the program in its 12 regional offices in 10 provinces and aiming to do so in all 34 provinces in the country. It has also provided training for its clients in Yogyakarta, and in seven cities of West Java, on how to manage a website.

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