Currently, Small and medium-sized enterprises (SMEs) comprise almost all of private enterprises across the ASEAN region, but only account for around 10 to 30 per cent of total exports.
Speaking as a keynote speaker at the ASEAN Summit 2016, organised by RHTLaw Taylor Wessing, Mr Ong acknowledged that progress in ASEAN economic integration has been "quite impressive".
However, he added that there are various challenges facing SMEs. These include a relatively lower level of labour productivity when compared to the United States, access to finance, a reluctance to internationalise and look beyond national borders, as well as cumbersome business requirements for SMEs.
Mr Ong, who is also a former ASEAN Secretary-general, highlighted several recommendations to meet these challenges, including elevating the ASEAN SME Advisory Board to the level of ASEAN SME Ministers Meeting. This will mean more attention is paid to SMEs, which is separate from the ASEAN Trade Ministers grouping.
He also suggested providing more support services to enhance the competitiveness of SMEs, as well as ensuring a systematic and flexible approach towards financing and capital.
Speaking to the media on the sidelines of the event, Mr Teng Theng Dar, who is the chairman of Barterfli Holdings, said the AEC represents a market of 630 million people for Singapore. He added that the private sector should take a more proactive approach towards realising the vision of the AEC.
- CNA/xk
