Page 78 - ASEAN BUSINESS AND INVESTMENT SUMMIT 2019

78 ABIS 2019

ASEAN MSMEs in the

Digital Era: Challenges and

Opportunities

ON 5 SEPTEMBER 2019, BANGKOK, THAILAND

Background

At the emergence of the Fourth Industrial Revolution (4IR), ASEAN is undergoing a
transition marked by the rapid adoption of technology. ASEAN is expected to see rapid increase
the adaption of technology which would contribute to the growth of its digital economy. The
digital economy is a key factor driving the growth of the region’s economy. Recently, studies have
pointed to the potential of MSMEs as the growth of engine of the digital economy in ASEAN,
if they can unlock their potential by adopting technology and innovation to enhance business
performance and competitive advantage. The structural collaboration between public and
private sectors as well as academic and civil society through capacity building programmes is
envisaged to increase awareness and readiness of MSMEs to navigate the digital economy.
In the meantime, MSMEs are necessitated to access finance, technical support, and an
enabling environment for their sustainability and growth. The financing and technical support
options currently available to MSMEs in the region range from traditional finance as bank loans
to alternative finance such as crowdfunding and impact investing. These enabling factors can
help MSMEs overcome barriers to their growth and expansion. But it is in need for MSMEs to
harness advanced technology and digitalization in order to access global markets and supply
chains. Moreover, it also requires the development of ecosystems that will enable traditional
sources of credit to expand their services to MSMEs and the establishment of regional digital
trade platforms to promote financial innovation.