Greater support for SMEs urged as Asean integration approaches

MANILA, Philippines - Business organizations in Asia are pushing for greater support for small and medium enterprises (SME) to allow the sector to benefit from the Association of Southeast Asian Nations (ASEAN) economic integration as well as global trade.

Philippines-Japan Economic Cooperation Committee Inc. chairman Egmidio Jose said during the press conference for the 5th Asian Business Summit, the eight business organizations from seven economies in Asia such as India, Japan, Korea, Philippines Singapore, Taiwan and Thailand have agreed that providing support to SMEs should be a priority of governments in the region.

“Number one that needs to be supported is SME. Here in the Philippines, it is not really being supported by government,” he said.

As in other countries in the region, the SME sector is considered a key contributor to economic growth in the Philippines.

By providing support to SMEs, Jose said such businesses would be able to take advantage of opportunities offered by the ASEAN Economic Community (AEC).

Singapore Business Federation chief executive officer Ho Meng Kit shared the same view, noting that the AEC has opportunities for small businesses to expand beyond the domestic market.

He noted that while Singapore’s government has been actively supporting SMEs, there is a need to move the SME agenda from the national to the regional level.

“I think for SMEs to grow, they must grow not just within their country… they must grow within the region,” he said.

The AEC, which would be in place by the end of next year, is expected to transform ASEAN into a region with free flow of goods, services, skilled labor, investments and capital.

There are opportunities with the upcoming AEC as the region has a market of over 600 million consumers and combined gross domestic product of nearly $3 trillion.

Apart from providing support to SMEs, Japanese business group Keidanren’s vice chairman Norio Sasaki said in the same event, that as economies in the region prepare for the ASEAN integration and post-AEC scenario, governments in the region also need to invest more in infrastructure to keep up with the pace of economic development.

“As the economy develops, infrastructure must be developed. We must make sure the necessary infrastructure is in place,” he said.

The 5th Asian Business Summit was held in the Philippines for business leaders to discuss major challenges faced by Asian economies.

The business groups agreed during the summit they would play an active role in supporting the sustainability of the growth of the Asian economy, regional integration, making use of natural resources, infrastructure development, improving the business environment as well as movement of natural persons.