Development of local SMEs crucial to success of AEC

ASEAN as a single economy is forecast to become the third largest economy in the world by 2030, behind only the United States and China, and success of the much talked about Asean Economic Community (AEC) set to be established within the year will be paramount to achieving this.

Forming the backbone of the AEC are small and medium-sized enterprises (SMEs), which account for up to 80 per cent of domestic employment. SMEs contributed between 30 and 53 per cent to the region's Gross Domestic Product (GDP) of US$2.5 trillion in 2014. Yet, many SMEs are ill-prepared to take advantage of the opportunities presented by this move towards comprehensive regional integration.

While there is a Strategic Plan for Asean SME Development 2010-2015 which provides the framework for SME development in the region, there is a struggle in bringing this to life, and more pro-active efforts need to be done to grow SMEs for the economic and social progress of ASEAN and its people.