The Market Monitor Minding the Nation's Business
By Riza Lozada
Association of Southeast Asian Nations (Asean) micro, small and medium enterprises (MSMEs) play an important role in linking up with multinational enterprises (MNEs) and propelling economic growth of the regional block, Trade and Industry Secretary and Board of Investments (BOI) Chairman Ramon Lopez said.
Addressing participants of the 43rd Philippine Business Conference (PBC) of the Philippine Chamber of Commerce and Industry (PCCI) recently, Lopez said just like the Philippines, the Asean region is poised to grow from 4.5 percent in 2016 to 4.8 percent in 2017 with the Asean Economic Community (AEC) already in place. A major milestone in the regional economic integration is the AEC Blueprint 2015 which puts emphasis on including MSMEs in the global value chains of many large and multinational Asean companies.
“This shows that government and the private sector can work together in pursuit of shared goals of economic development. The Focused and Strategic (FAST) Action Agenda on Investment is one of the country’s key deliverables in our capacity as the Chairman of Asean this year,” Lopez said.
“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 window to assist Asean trade transactions,” he added.
Putting the FAST Action Agenda into force and jumpstart the linkage, the DTI, through its industry development and investments promotion arm, the Board of Investments (BOI), conducted a Business Matching Activity as a sub-activity in PCCI’s PBC. Dubbed as “Linking Asean MSMEs with Asean and Global MNEs”, the activity served as venue for MSMEs 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,” Lopez said.
“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.