FedEx Survey: 86% of Singaporean SMEs Reporting Growing Trade
21 Nov 20254 min read
Summary
- Singaporean SMEs are strengthening their trade position with Europe, with 86 percent reporting higher volumes driven by strong demand and increased investment in European markets. Their customer presence in Europe is also deeper than the APAC average, and most businesses report an improved outlook compared to last year.
- The United Kingdom, Germany, and France remain the primary destinations, with most Singaporean SMEs exporting to these markets and expecting continued growth. Sustainability is an important consideration for more than half of these businesses when selecting logistics and supply chain partners in Europe.
- Despite rising optimism, SMEs continue to face challenges related to logistics costs, customs processes, and market intelligence. FedEx is expanding its air network and improving connectivity to support growing Asia to Europe demand, providing faster transit times and stronger regional coverage.
SINGAPORE, November 21, 2025 — Federal Express Corporation (FedEx), one of the world's largest express transportation companies, today released insights from a survey examining trade trends between Asia Pacific (APAC) and Europe, covering 13 markets across the region including Singapore. Among key regional findings highlighting the enablers and challenges shaping cross-border trade, the survey revealed that Singaporean SMEs outperform the APAC average across nearly all trade measures, such as the proportion of customers in Europe, demand for products and services, and more. Out of the 100 Singaporean SMEs polled, 86% of them indicated experiencing higher trade volumes with European markets, driven by increased demand for products/services (51%), greater marketing and investment focused on European customers (43%), and new product and service launches tailored for European markets (41%) — a clear indication that Europe remains a critical market offering significant growth opportunities for Singaporean businesses. In line with Singapore being a key Asian trade partner for Europe’s largest economies, 66% of Singaporean SMEs now have at least a quarter of their customer base in Europe. This is higher than the regional figure, where 50% of SMEs report having at least a quarter of their customers in Europe. Even in smaller markets like Italy, Spain, and Poland, Singaporean businesses maintain a stronger presence than regional peers. Overall, 84% of Singaporean businesses reported an improved outlook over the past year — 10% above the regional APAC average.
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“Singaporean SMEs are demonstrating remarkable resilience and agility in expanding trade with Europe, capitalizing on strong demand and strategic opportunities,” said Eric Tan, managing director, FedEx Singapore. “This growth reflects on the strength of Singapore’s trading relationship with Europe, and the confidence to thrive amid shifting global dynamics. FedEx will continue investing in network capacity, digital innovation, and expertise to help Singaporean businesses sustain and accelerate their momentum.”
While optimism is high, 85% of Singaporean SMEs report being affected by global logistics disruptions and shifting regulations. The main barriers to entering European markets include logistics costs, customs regulations, and a lack of demand and market intelligence, while top challenges for businesses already in Europe are import taxes/tariffs and supply chain complexities.
Key European Markets for Singaporean SMEs
The United Kingdom (UK), Germany, and France emerge as the top markets for Singaporean SMEs. 36% of Singaporean SMEs entered Europe through the UK, reflecting historical trade ties, while 81% currently export to the UK, 70% to Germany, and 68% to France. These markets are expected to continue leading growth over the next one to two years. Across the wider Asia Pacific region, the United Kingdom leads as the primary gateway to Europe (31%), followed by Germany and France (18% each). For 51% of Singaporean SMEs, sustainability considerations play a key role in logistics and supply chain choices when conducting business with European partners, signaling a shift toward greener and more responsible trade practices.
Enabling Smoother Trade
Aligned with a majority of APAC markets, Singaporean SMEs see cost efficiency as the top factor for boosting trade with Europe, with 40% rating it critical. The key areas where Singaporean SMEs seek support to expand trade with Europe are: • 42% accessing cost-effective logistics solutions • 33% receiving customs clearance expertise • 27% receiving regulatory guidance
Meeting Asia-Europe Demand with Capacity, Reliability and Intelligence
To better support surging trade growth, FedEx added five weekly flights connecting Asia to Europe this month. Additionally, FedEx enhanced connectivity between Vietnam to Europe reducing shipment time by one day. FedEx now operates 26 weekly flights connecting APAC shipments to Europe, delivering express shipments to major European destinations in as little as 48 hours1. The company’s integrated air-and-road network is one of the fastest in Europe, enabling quick deliveries across the region. Anchored by key logistics hubs in Paris, France and Liege, Belgium, the network supports over 550 pick-up and delivery stations across 45 countries and territories and facilitates the sorting of more than two million packages every day.
About the Survey
This online survey was conducted by Milieu Insight in September 2025 across 13 Asia Pacific markets including Australia, New Zealand, China, Hong Kong SAR, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Taiwan, Thailand, Vietnam, and by Mortar Research across 9 European markets including the United Kingdom, France, Spain, Turkey, the Netherlands, Poland, Italy, Belgium and Germany. The survey gathered insights from 1,205 European businesses engaged in international trade, alongside 850 Asia Pacific SMEs who actively trade with Europe.Click here to download the full report.
About Federal Express Corporation
Federal Express Corporation is one of the world's largest express transportation companies, providing fast and reliable delivery to more than 220 countries and territories. Federal Express Corporation uses a global air-and-ground network to speed delivery of time-sensitive shipments by a definite time and date.