Empowering Asia-Pacific’s SMEs: The Next Chapter In Global Trade
By Kawal Preet, President, Asia Pacific, FedEx
In Asia-Pacific, small and medium-sized enterprises (SMEs) account for over 90% of all businesses and contribute between 40% and 60% of the region’s GDP. They are the backbone of economic growth—driving innovation, generating employment and fostering resilience across diverse markets.
Today’s trade landscape is defined by both complexity and possibility. Evolving regulations, shifting supply chains and rapidly changing consumer demand present SMEs with a unique mix of challenges and opportunities. While they may not possess the scale of global enterprises, SMEs bring to the table something equally powerful: agility, deep community roots and an entrepreneurial spirit that propels transformation.
What SMEs Need Now: Clarity, Agility And Connectivity
To thrive in this evolving environment, SMEs require three essential enablers: clarity, agility and connectivity.
SMEs need clarity to confidently navigate this dynamic landscape of trade regulations and policy shifts. A single change in tariffs or compliance requirements can disrupt operations, inflating costs and eroding competitiveness. Cross-border compliance remains one of the most persistent challenges. Tariff classifications, documentation requirements and regulatory updates can divert valuable time and resources away from growth initiatives. At FedEx, we are committed to removing these barriers. Through tools like the FedEx Tariff Hub, we provide businesses with actionable insights to help them understand regulatory changes, while the FedEx Import tool helps streamline customs clearance. By simplifying complexity, we enable SMEs to focus on what matters most: growing their businesses.
In an environment where change is constant, agility is everything. Whether facing a supply chain disruption, an unexpected surge in demand or an opportunity in a new market, SMEs must be equipped to act quickly and decisively. Leveraging technology is no longer an option; it is now a necessity. Digital transformation enables sharper forecasting, real-time visibility and more informed decision-making. For SMEs, it unlocks foresight. AI-driven tools and scenario planning capabilities allow businesses to anticipate potential disruptions, from policy shifts to demand fluctuations, and pivot with confidence. This ability to respond, adapt and optimize is what sets successful SMEs apart.
Connectivity—to customers, to markets and to enabling ecosystems—is the bridge to scalable growth. Seamless cross-border connections can elevate SMEs from local enterprises to global competitors. As new trade corridors grow, fueled by agreements like the Regional Comprehensive Economic Partnership, SMEs that leverage connectivity will be best positioned to build supply chains that flex with the future. At FedEx, we are investing in the infrastructure that powers this connectivity. From new flight routes linking China, India and Europe, to our first direct flight from Singapore to Anchorage, we’re constantly expanding capacity and increasing connectivity.
Charting The Future, Together
SMEs have long been the quiet force propelling Asia-Pacific’s growth. As the region enters a new era of transformation, these businesses are poised not only to adapt, but to lead.
At FedEx, we’re investing in the capabilities that matter most, with intelligent delivery solutions, scalable logistics infrastructure and a digitally enabled network designed for agility. Coupled with our global reach and customs expertise, we are committed to empowering SMEs to compete with confidence, grow sustainably and deliver excellence in an increasingly connected world.
More from Small Business Center
2025: Tech & Agility Are Powering Business Resilience
Meet the 2025 FedEx SBGC finalists—discover how Asia’s startups are thriving with technology and agility to fuel innovation and growth.
Navigating Trade Realignment With Smarter Supply Chain Strategies
Is your business ready to tackle the complexities of trade realignment? It's time to rethink your supply chain strategy.