Vision, Strategy and Actions for SMEs Integration into the AEC...Economic Region •Competition...
Transcript of Vision, Strategy and Actions for SMEs Integration into the AEC...Economic Region •Competition...
Ms YAP Lai Peng
ASEAN Secretariat
2nd OECD-ASEAN
REGIONAL SME POLICY ROUNDTABLE
25 November 2014
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Vision, Strategy and Actions for SMEs
Integration into the AEC
Content
I What is the AEC?
II Where are we now?
III The Potential of AEC
IV SME INTEGRATION INTO THE AEC
V What comes next after 2015?
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AEC 2015 - What we set out to do
ASEAN ECONOMIC COMMUNITYSTRATEGIC SCHEDULE OF THE AEC BLUEPRINT (2008-2015)
Pillar 1Single 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 3Equitable Economic
Development
• SME development
• Initiative for ASEAN Integration
Pillar 4 Integration into
the Global Economy
• Coherent approach towards externaleconomic relations
• Enhanced participation in global supply networks
HUMAN RESOURCE DEVELOPMENT RESEARCH AND DEVELOPMENT
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AEC Blueprint: Signed in 2007
Defined: The AEC will “establish
ASEAN as a single market and
production base with the goal of
making ASEAN more dynamic
and competitive.”
Where are we now?
Four Pillars of AEC
Single Market and Production Base
Competitive Economic Region
Equitable Economic Development
Integration into the Global Economy
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SME ACTION PLAN 2011-2015
BY ACTIVITIES
Source : SME Post 2015 Action Plan Study5
AEC-Yangon-Oct14v1.pptx 6Draft—for discussion only
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The Rise of ASEAN : A new economic giant
2003 2013 2020e
World GDP ranking
0.7
1243210
($T)
Mexico
ASEAN
Spain
Canada
Italy
China
France
UK
Germany
Japan
USA
#10
2.4
2050
($T)
India
Italy
Russia
Brazil
ASEAN
UK
France
Germany
Japan
China
USA 4%
19%
1%
4%
4%
3%
12%
15%
17%
3%
12%
CAGR %(2003-13)
CAGR %(2013-20e)
5.1
20 2550
($T)
Canada
Brazil
Russia
France
UK
Germany
ASEAN
India
Japan
China
USA 5%
10%
2%
15%
12%
3%
4%
2%
6%
4%
4%
Source: EIU, BCG analysis
#7
#5
Double-
digit
growth
comparable
to BRIC
Double-
digit
growth
trumps
majority
BRIC, only
lags behind
India
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AEC matters to Private Sector:
ASEAN is a large market!
Estimates of East Asia’s Middle Class
METI: 880 million (2008)
ERIA-Intal Estimates: Estimate A: $3-12 per capita per day PPP
ASEAN 7 : 156 million mid-2000s China : 526 million mid-2000s India : 96 million mid-2000s
Estimate B: $4 – 30 per capita per day PPP ASEAN 7 : 111 million mid-2000s China : 378 million mid-2000s India : 49 million mid-2000s
Source: ERIA – Dr Intal
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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; and
SMEs contribute 19% - 31% to exports
SMEs in ASEAN
PRIVATE SECTOR - PRIORITIES
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INFORMATION CAMPAIGN
FINANCE
TRADE FACILITATION
WOMEN/YOUTH ENTREPRENEURS
Focus on Women and Youth Entrepreneurs
ABAC 2014 Report to Leaders
Aggressive campaign for SMEs
Improvements through financial sector reform, requirement for banks to provide financing
Rules of Origin, Green Lane, Product Standards
POST-2015 ASEAN LANDSACPE
INTEGRATED AND COHESIVE
COMPETITIVE INNOVATIVE
DYNAMIC
RESILIENT INCLUSIVE
PEOPLE-CENTERED
SECTORAL INTEGRATION
GLOBAL ASEAN
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Post 2015 – Focus on 5 Strategic Goals
Promote Productivity,
Technology and Innovation
Enhance Policy and Regulatory
Framework
Increase Access to Finance
Promote Entrepreneurship
and HRD
Enhance Market Access/
Internationalisation
1 2 3
4 5
9 policies 5 policies 7 policies
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PwC
GOALS AND OUTCOMES
ASEAN SME Strategic Action Plan (2016-2025)
Strategic Goals Desired outcomes
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A)Promote Productivity, Technology and Innovation
B) Increase Access to Finance
A-1) Productivity, Technology and Innovation will be enhanced
A-3) Innovation will be promoted as a Key Competitive Advantage for SMEs
A-2) Cluster-based Strategy will be enhanced
A-4) IPR Protection for Commercialization will be enhanced
B-1) Regulatory Framework for Access to Finance will be developed and enhanced
B-2) Financial Inclusion and Literacy will be promoted
B-3) Alternative Financing will be promoted
PwC
(cont’d)
ASEAN SME Strategic Action Plan (2016-2025) 13
C)Enhance Market Access and Internationalization
D)Enhance Policy and Regulatory Environment
E)Promote Entrepreneurship & Human Capital Development
C-1) High Value Information of the Market to SMEs will be enhanced
C-2) Financial Facilities for SMEs to Export will be developed
C-3) Integration into the Global Supply Chain and Market will be enhanced
C-4) Partnership with Large Enterprises will be promoted to Increase Market Access Opportunities
D-1) Inter and Intra- Governmental Cooperation and Coordination in Policies and Regulation will be enhanced
D-2) Cheaper and Faster Start-ups will be enhanced
D-3) Institutional Framework will be strengthened
E-1) Conducive Environment for Entrepreneurship will be created
E-2) Entrepreneurship Education will be promoted
E-3) Capability Building Activities including Women and Youth will be provided
SME Integration requires specific focus post 2015:
Avoid
CROWDING OUT
private sector
improving the Policy Environment
Cross SectoralCollaboration
(Across Sectors and With Business)
Targeted SME Programmes
1 2 3
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NEW PLAN INITIATIVES SHOULD:
MOVE THE NEEDLE
BENEFIT SMES AS A GROUP
FOLLOW-THROUGH
• BIG IMPACT
• SHOW RESULTS
• MAXIMISE RESOURCES
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Thank You
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