ASEAN pushes for bigger role for micro to medium enterprises in global trade

The Association of Southeast Asian Nations (ASEAN) is pushing for greater participation of micro, small, and medium enterprises (MSMEs) in regional and global trade, with the Philippines advocating for stronger market access and digital integration for smaller businesses.

During a joint press briefing by the Department of Trade and Industry (DTI) and the Department of Foreign Affairs (DFA), DTI Undersecretary Allan Gepty said ASEAN is working to sustain economic activity amid the ongoing crisis in the Middle East while ensuring trade opportunities extend beyond large corporations.

“ASEAN is an economic community which is positioned not only as a market but also as a production [hub],” Gepty explained. “One of the important … trade agenda of ASEAN is inclusivity and that includes, integrating micro, small and medium enterprises to the global value chain. And one way to do that is for them to be given enhanced market access in the region.”

Gepty said integrating MSMEs into the ASEAN market would not only allow local businesses to export goods abroad, but also connect them with companies already operating within global value chains.

He added that regional integration also creates opportunities in services, investments, and employment generation.

“Being integrated in the (ASEAN) region is not just solely confined to trade in goods. You can take advantage of the liberalization that we have adopted on services. And of course, not to mention the importance of encouraging more investments, because investment generates not just jobs, but also opportunities for businesses,” the DTI official said.

Under the Philippines’ ASEAN chairmanship, one of the country’s Priority Economic Deliverables is the proposed establishment of an ASEAN Center of Excellence for MSMEs, which aims to consolidate programs, projects, and initiatives supporting small businesses across the region.

According to Gepty, the proposed center would strengthen regional collaboration and help MSMEs become more competitive and better integrated into the global market.

The Philippines is also pushing for the conclusion and signing of the Digital Economy Framework Agreement, as well as the establishment of a framework for regional payment interconnectivity within ASEAN.

“The online platform is one equalizer for our MSMEs to access foreign markets. And I think to come up with a set of rules that would govern transactions online would be highly welcome including our initiative on regional payment interconnectivity,” Gepty added.

-Paraluman News