ASEAN unity in helping fuel MSME growth

With the adoption of the Manila Call to Action (MCA) for ASEAN MSMEs, all 10 ASEAN Governments, including the Philippines, are called to pursue affirmative actions for MSME development.

Adopted at the ASEAN MSME Development Summit on 14 July, the MCA strongly urges all ASEAN Member States (AMS) to dedicate fund to power programs and initiatives on MSME development.

“True to its name, the document is a call to action. We rally to purse 7Ms for MSME development and to translate our aspirations into deliberate actions at the regional, national and local levels,” said ASEAN Economic Ministers chairman and Trade Secretary Ramon Lopez.

The trade chief refers to the 7Ms, namely, mindset, mastery, mentoring, money, machines, markets and models. The 7Ms is the holistic MSME development strategy proposed by the Philippines to drive shared prosperity in the region.

“What we are discussing in our local engagements is now receiving regional attention. This is only indicative of the regional applicability of our grassroots efforts to help MSMEs move up in life,” he added.

The MCA has been concluded with the collective efforts of the private sector, civil society and government from across ASEAN, bringing together knowledge, perspectives and experience in growing MSMEs.

According to Sec. Lopez, MSMEs must be full participants and beneficiaries of the economic dynamism that the current ASEAN integration brings. To this end, MSMEs’ role and contribution in attaining inclusive, people-centered ASEAN must be further strengthened.

Said outcome document has subsections that purposely pertain to the 7Ms.

On mindset, mastery and mentoring, the MCA calls on integrating entrepreneurship values and skills in the educational system spanning all levels. A convergence mindset in all government entities that recognizes the centrality of MSME development is envisioned.

“An all-of-government approach for MSME development is needed across all ASEAN Member States,” Sec. Lopez said.

On money access, the MCA reiterates the importance of setting up alternative financial instruments to better serve MSMEs’ financing needs. In this regard, an appropriate regulatory framework to govern institutions shall be created. Financial literacy and management for MSMEs should also be intensified.

On machines, the MCA stresses the importance of establishing research and development centers, improving the government’s assistance programs and providing more platforms and opportunities for knowledge sharing on non-proprietary machines and technologies.

A unified ASEAN digital marketplace is aspired to reach MSMEs beyond national borders. To boost market access, the MCA also calls to ensure quality compliance to sustain global competitiveness of ASEAN products and services, as well as to widen linkages of MSMEs to the regional value chains.

“We advocate for the promotion of social enterprises, highlighting the community-based approaches to enterprise development, said Sec. Lopez, adding that the inception of an ASEAN MSME starter kit map that compiles different business models for MSMEs is crucial.

“We should not wait for growth to trickle down. The MCA is set to pave the way towards region-wide prosperity that is powered by our MSMEs, thus spurring growth from the bottom of the pyramid,” he concluded.

PH advocates development of MSMEs

The Philippines, through the Department of Trade and Industry (DTI), continues to advance the promotion and development of micro, small, and medium enterprises (MSMEs) in the ASEAN region through the “ASEAN MSME Development Summit” on 14 July.

Under the Summit’s theme “7Ms Towards Shared Prosperity in ASEAN,” the Philippines laid out a seven-point strategy essential for MSME development—mindset, mastery, mentoring, markets, money, machines, and models—which the country wants the region to adopt to advance the ASEAN economic agenda of shared prosperity.

The Summit gathered representatives from the private sector, civil society, and ASEAN governments to develop new ideas and identify areas of improvement to successfully place MSMEs in the vanguard of the ASEAN Economic Community’s (AEC) drive to achieve inclusive growth.

“The Philippines has been in the forefront of providing substantive initiatives toward establishing MSMEs at the core of the ASEAN economic agenda. We want to elevate discussions and provide the right information on how we can further assist them to support our goal of achieving inclusive growth in ASEAN,” said ASEAN Economic Ministers chairman and DTI Secretary Ramon Lopez.

The development of MSMEs is integral to sustaining the economic development in ASEAN since MSMEs comprise most of the businesses in the region’s aggregate regional economy, accounting for over 90 percent of all the domestic firms and 75 to 90 percent of the non-agricultural workforce.

In pushing the MSME agenda, the Philippines seeks to address key challenges in their development and achieving prosperity in the region.

Experts in various fields discussed the seven-point strategy taking into account the challenges that small enterprises face.

Session 1 with Mindset as a theme, provided discussions on how to train and orient entrepreneurs with the right entrepreneurial characteristics and attitude.

Sessions 2 and 3 on Mastery and Mentoring, tackled the core principles of entrepreneurship that will equip MSMEs with the necessary competence and effective knowhow to seize gains for their ventures.

Session 4 covered Markets, a key component in the survival of any business. It discussed how markets are made more accessible and the various technologies that can help MSMEs gain traction in the local and international arenas.

Session 5 on Money took a closer look on financing schemes that MSMEs can further explore and access and some key initiatives governments undertake to facilitate access to much needed capital.

Lastly, Session 6 and 7 gave an insight on how access to appropriate Machines and technology, and choosing the right business Models can help upgrade their businesses, boost productivity, and improve marketability of products and services.

“MSMEs comprise the backbone of our economy and thus vital to the country’s growth. With the help of 7Ms, we know MSMEs are a step closer to advancement,” said DTI Undersecretary for Regional Operations Zenaida Maglaya.

ASEAN government representatives and MSMEs graced the event and expressed full support to the Philippines’ call for greater cooperation in placing the interest of MSMEs at the core of the AEC agenda.

The ASEAN MSME Development Summit was organized by the ASEAN Committee on Business and Investment Promotion (CBIP), which is chaired by the DTI, and the DTI Bureau of Small and Medium Enterprise Development (BSMED).

The CBIP’s mandate is to organize business and investment promotion activities that will engage the international business community, government, and other concerned parties in the drive to achieve the AEC’s goal of shared prosperity in the ASEAN region.

During the Summit, the Philippines’ DTI also launched “SIKAP: Sipag at Abilidad ng Pilipino,” a coffee table book that showcases success stories of MSMES across the Philippines. It also mounted a Go Lokal! Trade Exhibit, which showcased world-class products of Philippine MSMEs.

The Philippines’ Chairmanship of ASEAN 2017 was formally launched on 15 January at the SMX Convention Center in Davao City with the theme “Partnering for Change, Engaging the World.”