Ambassador Manuel Teehankee, the Philippines’ Representative to the WTO, discussed how MSMEs are the backbone of ASEAN, yet they face many challenges. He talked about the need to increase accessibility and cross-border connectivity, which would help companies navigate the increasingly complex global markets.
Financial technology companies, digital payment platforms, and ASEAN policy experts are supporting micro, small, and medium-sized enterprises (MSMEs), as they believe these enterprises could play a vital role in driving regional growth.
ASEAN has more than 480 million digital consumers and is a leader in inclusive digital trade. Yet, MSMEs have faced obstacles for a long time due to barriers and are excluded from enjoying the advantages of digital trade. Around 95% of companies are MSMEs, which provide approximately 60% of jobs; yet, they face a $5.7 trillion financing gap globally.
The World Trade Organization’s Public Forum is the organization’s largest platform for reaching stakeholders from around the world. They discuss how the multilateral trading system can handle economic challenges. This year, the theme focuses on the role of trade in global growth and how digital transformation is reshaping the interconnected global economy.
Ambassador Manuel Teehankee, the Philippines’ Representative to the WTO, discussed how MSMEs are the backbone of ASEAN, yet they face many challenges.
He talked about the need to increase accessibility and cross-border connectivity, which would help companies navigate the increasingly complex global markets.
Session moderator and panelist Rowena Zamora, Chief Strategy Officer of Mynt, GCash’s parent company) talked about creating supportive environments so that it would be easier and affordable for MSMEs to transition to a cashless system.
She advocated for expanding MSME access to the market, both domestically and across South East Asia, and for providing solutions to address the costs of participation and regulatory compliance.
Rowena Zamora described how GCash, a leading digital finance platform, is serving six million merchants, many of whom are small businesses, by providing alternatives to traditional bank loans. They are also working closely with government agencies and regulators to help the MSMEs participate in the digital economy.
She also discussed several projects in the region that aim to empower small companies, such as the ASEAN Single Window. They were initially created to increase the speed of shipping and reduce trade costs by facilitating the quick movement of customs documents between countries. Its cross-border integration helps the fintech and MSMEs to process transactions and paperwork more efficiently digitally.
South East Asian countries are working together to make cross-border regulations more consistent across borders, and GCash tools, which are used for international payments, have made it easier for MSMEs to conduct international transactions.
Felix Sharief, DANA’s VP of Public Policy and Government Relations, explained that when ASEAN companies work together to harmonise e-commerce regulations, it will help DANA to lower costs and offer more financial services to Indonesian people who do not have access to traditional banking.
He pointed out that micro, small, and medium enterprises are a huge part of Indonesia’s economy. They contribute 61% to the economy and employ four out of five workers. DAN will help them by providing tools and digital platforms to support their growth.
Sharief also emphasized the value of cooperation between the public and private sectors. In these partnerships, private companies provide the necessary technology solutions, while governments create policies and regulations that make it easier for MSMEs to participate in the digital economy.
He discussed Project Nexus, which is developing a unified system for instant payments. With this system, companies can make cross-border payments easily. Project Nexus is a multilateral effort that ensures all member interests are considered, balancing the needs of central bank finance ecosystems with the broader goal of building a global network.
The panel further examined ways to expand MSMEs’ access to wider economic opportunities, enhance interoperability to reduce friction and costs, and combine technology with collaboration to drive economic growth in the region.
Zamora also participated in the discussion “Digital Payments in ASEAN: From Innovation to Inclusion,” which was organized by the Indonesian government, exploring cross-border QR code and regional payment connectivity.