No real Asean integration without MSME inclusion, says Samenta

New Straits Times

23-05-2025

KUALA LUMPUR: There can be no real Asean integration without real micro, small and medium enterprises (MSMEs) inclusion, said the Small and Medium Enterprises Association Malaysia (Samenta).
Its national president Datuk William Ng said Asean leaders must place MSMEs at the heart of the region's integration strategy to boost the group's otherwise low intra-regional trade.
Policymakers, he added, must seize a "once-in-a-generation" opportunity to address structural barriers holding back MSMEs and to reposition them as key drivers of innovation and resilience in the region.
"MSMEs make up over 97 per cent of all businesses and contribute to more than 85 per cent of employment in many Asean countries, yet their contribution to gross domestic product and intra-regional trade remains disproportionately low," Ng said in a statement.
He cited various non-tariff barriers, from inconsistent product standards and fragmented licensing systems to slow, non-digitised customs procedures, as key impediments that make cross-border trade costly and inefficient for smaller firms.
"These barriers are structural and long-standing. If we are serious about regional economic integration, we must adopt enforceable commitments to reduce them," Ng said, adding that mutual recognition arrangements and wider use of the Asean Single Window must be prioritised.
Ng also warned that MSMEs risk being sidelined amid shifting global supply chains, such as the China Plus One strategy and continued geopolitical tensions.
"This is an ideal moment for Asean to present itself as a neutral, business-friendly bloc. But that will only be credible if MSMEs are empowered to compete and contribute as equal partners in regional growth," he said.
Samenta also urged the region to invest in dedicated innovation grants, establish regional centres for research and development, and support platforms for cross-border collaboration in talent and technology.
It also called for more inclusive implementation of Asean's digital and environmental, social and governance agendas, and greater support for creative industries, particularly those led by youth and women, as a new growth frontier for MSMEs.
"The Kuala Lumpur Asean Summit must be a turning point. A resilient Asean must begin from the ground up, with our small businesses at the core of our shared future," Ng said.