Philippines urges APEC to address MSME trade constraints

MANILA, Philippines - The Philippine government is urging Asia-Pacific Economic Cooperation (APEC) economies to address constraints faced by micro, small and medium enterprises (MSME) for them to fully participate in trade across the region.

In a statement, Department of Trade and Industry (DTI) Assistant Secretary Rafaelita Aldaba said APEC has the opportunity to realize the integration of SMEs in the global value chain, most especially in the automotive industry.

“SMEs, which comprise the majority of the auto industry players, can take advantage of the region’s very dense production network in auto components, parts and electronics,” she said.

Aldaba said automotive industry trends in the region such as the increasing importance of alternative energy vehicles and the focus on the development of next-generation cars or driverless cars of the future are beaming with potential.

The DTI said the cost of electronic parts as percentage of total vehicle cost is expected to rise to 40 percent this year as compared to only 20 percent in 2004.

“It is within the supply chain operators to improve internal efficiency, a facilitative market and trading environment, freer and open trade, transparent market information and supportive national policies aligned with regional cooperation goals will strengthen connectivity of supply chains,” Aldaba said.

The Philippines earlier this year started implementation of the Comprehensive Automotive Resurgence Strategy (CARS) program which aims to develop the country as a regional automotive manufacturing hub.

“The Philippine chairmanship of the APEC Auto Dialogue this year is an opportunity for us to foster stronger linkages within the economies that will support as well our local initiatives to boost the local automotive industry. The basic challenge is for our SMEs to be internationally competitive,” Aldaba said.

“For us to participate in global value chains is to address constraints on SME competitiveness and productivity; to think beyond simply exporting and to strengthen capacity for innovation. This is one area where regional cooperation could also play a role,” she added.