SMEs’ impact on 2015 Asean integration cited

WHILE next year’s economic integration of the 10 member-states of the Association of Southeast Asian Nations (Asean) is expected to affect small and medium enterprises (SMEs), they, in turn, have also a significant impact on the coming regional transition to a single economic block.

For this reason, Kat Luna-Abelarde, Philippine Long Distance Telephone Co. first vice president and head of SME Business operations, suggested that SMEs should start leveling up and adapt to changes in the market since demand is expected to rise for more quality products as a tougher competition within the region is projected to happen. “The diversity, however, will provide them the freedom and creativity to develop new products and services that can potentially spur economic growth within their local economies and the Asean economy as a whole,” she said.

The SMEs are considered as the lifeblood of economy, especially in most Southeast Asian nations, as they comprise over 90 percent of businesses throughout the region, and hire from 50 percent to 99 percent of the work force in respective countries.

In the Philippines alone, they account for 99.6 percent of the registered enterprises, generating at most 32 percent of the country’s gross domestic product and employing 63 percent of the labor sector.

By providing them a world-class infrastructure and building an information and communications technology culture will help them achieve success which, according to Luna-Abelarde, will eventually redound to economic growth across the region upon realization of the integration. –Roderick L. Abad, Businessmirror