Micro-multinational enterprises (mMNEs) are the main drivers behind the transformation of digital trade in the region, according to Deloitte’s
With the help of digital platforms, entrepreneurs and small businesses have become mMNEs as they are engaged in cross-border e-commerce across global markets. They provide diversified “locally-made products” and light customisation services for global buyers.
According to Deloitte, mMNEs are more adept at leveraging digital platforms, are small in scale (typically with fewer than 100 employees) and have globalised operations with an average of 3.56 overseas outlets. They contribute to over 85% of Asia Pacific cross-border e-commerce activities.
The report also reveals that today’s global trade is aggressively shifting from digitalisation to the stage of intelligence, with “digital trade” as the latest development form.
This calls for critical infrastructure such as 5G to help build data distribution platforms and new network architectures, and facilitate the Internet of Everything (IoE). In the meantime, the vast accumulation of big data, coupled with artificial intelligence, will play a key role in intelligent decision-making.
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“The COVID-19, the development of digital technologies and enhanced regional cooperation [through Regional Comprehensive Economic Partnership (RCEP)] are accelerating the formation of digital trade in the Asia Pacific region. Digital trade is presented with brand-new development opportunities,” says Taylor Lam, vice chair and Technology, Media & Telecommunications industry leader at Deloitte China.
Gary Wu, Deloitte global lead client service partner, adds: “The continuous improvement of digital infrastructure will effectively resolve the two major constraints affecting cross-border trade: logistics and payments. Blockchain technology is also creating a new space of imagination for digital trade.”
Echoing Lam and Wu, Frankie Fan, China Head of WorldFirst, says: “With the support of cross-border online sales and payment infrastructures and the RCEP starting to take into effect next year, SMEs of the region will increasingly gain foothold in the cross-border trade. At WorldFirst, we aim to provide one-stop financial services including payment, collection, and exchange services to companies--big and small, so that they can focus on business growth.”
Photo: Unsplash
