ASEAN MSMEs seen key to regional growth but need link up with MNEs

The Philippines, chairman of ASEAN this year, has highlighted the importance of ASEAN micro, small and medium enterprises (MSMEs) in linking up with global multinational enterprises (MNEs), propelling economic growth of the regional bloc to greater heights in the coming years.

Department of Trade and Industry (DTI) Secretary and Board of Investments (BOI) Chairman and Ramon M. Lopez noted that the AEC Blueprint 2015 did put emphasis on including MSMEs in the global value chains of many large and multinational ASEAN companies.

As such, Lopez said the AEC is a major milestone in the regional economic integration.

As country chair of ASEAN this year, Lopez said one of the Philippine deliverables is the Focused and Strategic (FAST) Action Agenda on Investment.

FAST promotes the integration of MSMEs in the regional production network.

“To enhance its promotion and participation of MSMEs in the regional value setting, we are working towards greater trade facilitation, self-certification and creating an ASEAN and national single widow to assist the trade transactions in ASEAN,” he added.

Putting the FAST Action Agenda into force and jumpstart the linkage, the DTI, through its industry development and investments promotion arm — the BOI.

Through the recent “Linking ASEAN MSMEs with ASEAN and Global MNEs,” the region’s MSMEs were able to meet and discuss with big companies for possible supplier tie-ups.

MSMEs and MNEs from the Philippines, Malaysia, Indonesia, Brunei Darussalam, Thailand, and Myanmar submitted interest on possible business collaboration particularly in automotive, engineering services, supply of agricultural products, and manufacturing.

A total of 24 meetings transpired during the business matching activity. Upon feedback by the participating companies, six agreed to have follow-up meetings, 13 agreed to further exchange additional information and two had preliminary agreements.

“Our goal is to showcase the region’s MSMEs as possible suppliers of products and services to international companies. As we further encourage them to enhance their competitiveness, in the same way, we also want them to expand their markets and link them to more business opportunities by participating in regional and global value chains,” said Lopez.

The linking of ASEAN MSMEs with ASEAN and global MNEs is one of the four key deliverables under the FAST Action Agenda on Investment, an initiative of the Philippines that the ASEAN CCI agreed to adopt as a priority deliverable in its 69th Meeting in Manila last February 2017.

Other key deliverables of the FAST Action Agenda include ASEAN-wide assessment of the outstanding issues on Trade Related Investment Measures, assessment on the establishment of an ASEAN Investment Tribunal, and an in-depth assessment of the business registration among ASEAN in support of the investment facilitation goal of the ASEAN Comprehensive Investment Agreement.

With the continuing positive prospect in ASEAN, MSMEs are among those that can take advantage of the business opportunities in the region. “For the Philippines, since we are empowering the MSMEs with all the necessary tools – education, mentoring, financing, market access, machines, equipment – so they can elevate and prepare themselves to compete and export to other countries,” he said. With the government’s thrust for inclusive and quality growth, Philippine MSMEs can integrate themselves in the ASEAN regional production network along with other MSMEs in ASEAN.