Apec lays out path for sustainable growth of MSMEs

Deputy PM Suppattanapong Punmeehaow, who chaired the meeting, pointed out that MSMEs make up more than 98 per cent of the region’s businesses and contribute 40 to 60 per cent of the GDP in most Apec economies.

“Promoting a more resilient, inclusive and dynamic trade and investment environment that strengthens the role of Apec MSMEs in the global economy is critical to economic recovery and sustainability of the region,” he said.

The Apec Small and Medium Enterprises Ministerial Meeting, held on Friday and Saturday in Phuket, was attended by ministers responsible for MSMEs from 21 economies. Also present were delegates from the Apec Business Advisory Council and Asean countries.

The theme of the meeting was “Inclusive Recovery of Apec MSMEs through the Bio-Circular-Green Economy (BCG) Model and High Impact Ecosystem”.

Supattanapong said the meeting focused on an inclusive, high-impact recovery plan in four priority areas, namely:

• BCG adoption: Promoting the BCG model to add value to MSME products and services, boost business opportunities and reinforce ongoing global efforts to address climate change.

• Digital transformation: Digitalisation to accelerate comprehensive development of MSMEs, boost recovery from the fallout of the Covid-19 pandemic and move closer towards the Apec Putrajaya Vision 2040, which targets strong, balanced, secure, sustainable and inclusive growth. The aim is to equip MSMEs with digital skills and tools, so they can reach more markets and customers. MSMEs will also require more consultation, digital skills training and digital solutions.

• Financing and debt restructuring for MSMEs: Apec countries are encouraged to address traditional lending constraints by introducing a credit enhancement scheme, credit mediation, alternative funding options like venture capital, sustainable finance, angel investment, private equity and promoting financial literacy. The aim should be to give MSMEs, especially those owned or led by women, greater and easier access to capital market financing.

• Coping with an evolving market landscape: The meeting embraced efforts to strengthen MSMEs’ competitiveness by improving the business environment for start-ups, fostering innovation, promoting participation in regional and global value chains and collaborating with large enterprises.

Supattanapong said he hoped the meeting would result in greater cooperation among Apec countries to encourage MSMEs and start-ups to adopt the BCG model as well as new technology to compete in the global market and contribute to the sustainable growth of regional economies.