Amazon Global Selling (AGS) has shared the results of a report, The E-commerce Revolution in ASEAN, about the opportunities and challenges faced by micro, small, and medium-sized enterprises (MSMEs) in the ASEAN-6 countries—Singapore, Malaysia, Thailand, Vietnam, Indonesia, and the Philippines—as they navigate the expanding global e-commerce landscape.
According to the report conducted by Access Partnership and commissioned by Amazon Global Selling, ASEAN-6’s B2C e-commerce export revenue was estimated at USD 18.9 billion in 2023, with MSMEs accounting for 38% of this total.
Assuming the current pace of e-commerce adoption and export, this could rise to USD 30.4 billion by 2028, with MSMEs potentially increasing their share to 48%. 90% of MSMEs in ASEAN-6 said that they would not be able to export without e-commerce. The report indicates that the U.S. are among the top priority destination countries today and in the next 5 years for ASEAN-6 MSMEs exporting through e-commerce.
Anand Palit, head of Southeast Asia for Amazon Global Selling said: “e-commerce unlocks a world of export possibilities for MSMEs and entrepreneurs by offering direct access to a global customer base and a chance to carve their own path on the international stage.
“Thousands of businesses in Southeast Asia sell their products in Amazon’s U.S. store through Amazon Global Selling, and the number of new sellers in Southeast Asia selling on Amazon.com has increased by 50% in 2024 compared to last year.”
Challenges faced by ASEAN-6 MSMEs exporting through e-commerce
However, according to the report, nine out of ten MSMEs identify a lack of understanding of foreign export regulations and high logistics costs as their primary obstacles. 90% of MSMEs agree that lack of knowledge of e-commerce import regulations in destination countries impede their ability to export via e-commerce. The top country MSMEs seek to bridge their gap in the knowledge of e-commerce export regulations is the U.S.
Government-industry partnerships
According to the report, over 90% of MSMEs surveyed agree that government-industry partnerships could help them better navigate foreign markets, while 92% emphasize the importance of online resources for enhancing their e-commerce capabilities. While the potential for growth in e-commerce exports is significant, the report highlights the necessity of coordinated efforts to empower MSMEs, ensuring they can fully engage in and benefit from the global digital economy.
