Public Launch & Forum 2024: IDEAS’ ASEAN Integration Report
The shifting global trade landscape—shaped by the pandemic and geopolitical changes—presents major opportunities for ASEAN firms. ASEAN exports are expected to grow by 90% by 2031, significantly outpacing global trade growth. A key to unlocking these opportunities is integrating micro, small, and medium-sized enterprises (MSMEs) into global value chains, enhancing competitiveness, upskilling, and export potential.
MSMEs are important drivers of economic growth and employment opportunities, making up 97% of businesses and contributing 85% of the workforce. Yet, their participation in cross-border trade—which is important for expanding market access—remains limited. Barriers such as non-tariff measures (NTMs), which include “beyond-the-border” regulations and compliance standards, as well as limited access to finance and gender disparities, hinder internationalisation. Despite efforts by ASEAN governments to address these issues, MSMEs continue to face significant regulatory and trade obstacles, dampening their ability to participate in cross-border trade.
This upcoming report, as part of this year’s ASEAN Prosperity Initiative (API), explores the broader challenges faced by ASEAN MSMEs, with a focus on Malaysia, Indonesia, and Thailand. The aim is to provide insights into the MSME landscape, the complex regulatory and procedural barriers that affect their growth, competitiveness and participation in international trade in the region.
Panellists List:
