OECD Southeast Asia Regional Forum Consultation Meeting –SME Policy Work Stream

one vision one identity

one community

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Towards the AEC 2015 and Beyond

24 March 2014 Bali, Indonesia

Outlines

Key Take-Aways from the ASEAN SME Policy Index

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2 ASEAN SME Strategic Plan - Progress & Key Achievements

SME as the Third Pillar of AEC 1

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1. SMEs – As the Third Pillar of AEC

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ASEAN ECONOMIC COMMUNITY

STRATEGIC SCHEDULE OF THE AEC BLUEPRINT (2008-2015)

Pillar 1 Single Market

& Production Base

• Free flow of goods • Free flow of services • Free flow of

investment • Freer flow of capital • Free flow of skilled

labor • Priority Integration

Sectors • Food, agriculture and

forestry

Pillar 2 Competitive

Economic Region

• Competition policy • Consumer protection • Intellectual property

rights • Infrastructure

development • Taxation • E-Commerce

Pillar 3 Equitable Economic

Development

• SME development • Initiative for ASEAN

Integration

Pillar 4 Integration into

the Global Economy

• Coherent approach towards external economic relations

• Enhanced participation in global supply networks

HUMAN RESOURCE DEVELOPMENT RESEARCH AND DEVELOPMENT

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Significance of SMEs to ASEAN Economies

SMEs represent up to 99% of all enterprises in ASEAN member states (AMS)

SMEs generate 56% to 97% of domestic employment including youth and women

SMEs contribute 30% - 60% to GDP

SMEs contribute 19% - 31% to exports

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2. ASEAN SME Strategic Action Plan – Progress & Key Achievements

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ASEAN Strategic Action Plan for SME Development (2010-2015)

Market Finance

Environment

Techno-logy

Infor-mation

Human Resource

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Access to Finance

Policy Dimension:

Access to Finance

ASEAN SME Regional Development Fund

SME Credit Rating Model

Accounting Guidelines for SMEs

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Access to Market & Internationalisation of SMEs

Policy Dimension:

International Market Expansion

Improvements in Rural Living Condition Through One Village One Product (OVOP)

SME Trade Fairs, Conference, Expos

Directories of ASEAN SMEs

Enhancement of ASEAN SME FTA Utilisation

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Access to Human Resources Development

Policy Dimension:

Promotion of Entrepreneurial Education

Internship Schemes for Staff Exchanges/ Visits

ASEAN Small Business Competitiveness Program

Common Curriculum for Entrepreneurship (COBLAS)

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Access to Information & Advisory Services

Policy Dimension:

Access to Support Services

Formulation of Case/ Industry Studies to Develop Benchmarks/ Baselines for SMEs

SME Guidebook Towards the AEC 2015

Establishment of ASEAN SME Service Centre, Phase II

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Access to Technology & Innovation

Policy Dimension:

Technology & Tech Transfer

Strengthening SME Business & Technology Incubator

Establishment of ASEAN Business Incubation Network (ABINet)

Policy Program to Upgrade SMEs in Selected Industry Sectors

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3. Key Take-Aways from the ASEAN SME Policy Index

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Key Take-Aways from the ASEAN SME Policy Index

Good Regulatory Environment

• ASEAN Benchmarks for Faster & Cheaper Startups

• A Common SME Definition Applied in a Country

• Good Coordination between Domestic Government Agencies

Entrepreneurial Education

• Support Entrepreneurial Learning

• Accelerator / E-learning Tools for Start-up

Access to Finance

• Develop Regulatory Framework

• Sound and Diversified Financial Products

• Financial Education and Discipline

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Key Take-Aways from the ASEAN SME Policy Index

Technology & Tech Transfer

• Promote Adoption of Technology

• Foster Tech Cooperation, focus on Commercialisation

• Promote Networking Among Tech Incubators

Support Int’l Market Expansion

• Capacity Building Program for Exporting SME

• Promote e-commerce, biz matching and social networking

• Reduce Cost and Simplify Customs Procedures

Access to Supporting Services

• Promote e-Services

• Ensure ranges of services and data are updated and relevant to domestic and regional trade

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CHALLENGES/ISSUES

A good SME policy environment vital for SME development

Minimum ASEAN benchmarks/standards for some of the components will be useful

Challenge will be to develop a roadmap and the milestones to achieve this

SMEWG post-2015 Action Plan - may be a good avenue to operationalise some of

these elements

Cross-sectoral effort – need cooperation of related ASEAN bodies

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www.asean.org

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