Small and medium businesses (SMBs) are a vital lifeline of the global economy. Worldwide, they represent 90 per cent of businesses and 50 per cent of employment and are often the cornerstones of growth and innovation.

In Asia-Pacific, their impact is even bigger. SMBs account for over 97 per cent of all businesses and employ over half of the workforce across Asia Pacific Economic Cooperation economies. They contribute significantly to economic growth, with their share of gross domestic product ranging from 40 per cent to 60 per cent in most countries.

Asia Pacific’s micro-businesses are also on the rise, with a new generation of digital-first micro-businesses that includes millions of creative individuals in the fast-growing creator economy.

Small businesses have shifted firmly into growth mode. Increased digitisation in key areas like services, logistics and payments has enabled this segment to reach new audiences and improve efficiencies.

Such payment advancements have allowed small businesses to access markets and opportunities that were not previously possible.

Here are five reasons why 2024 is shaping up to be a huge year for small businesses:

Rise of social commerce and the creator economy

By 2025, social commerce is expected to reach US$1.2 trillion, including work driven by a new generation of digital-first online content creators.

This trend is further propelled by shoppable media and influencer content, empowering SMBs to engage consumers to make purchases directly through social media platforms or navigate to brand sites.

About 54 per cent of consumers are more likely to purchase from an SMB through social commerce than through traditional e-commerce, indicating a significant opportunity for SMBs to increase their sales through social commerce.

Growth through cross-border selling

Technology and globalisation have upended the SMB landscape by providing them unprecedented access to global audiences. In fact, 79 per cent of surveyed SMBs by Visa expressed a strategic focus on cross-border selling for their growth initiatives.

The proliferation of e-commerce platforms, particularly in the Asia-Pacific region, also plays a pivotal role.

With integrated payment systems seamlessly connecting buyers from Switzerland to sellers in Sri Lanka, the prospect of selling to consumers on the opposite side of the globe is no longer a distant aspiration for SMBs.

The accessibility offered by these platforms diminishes geographical barriers, expanding the horizons for micro businesses and fostering a more interconnected global marketplace.

Small businesses take flight with travel rebound

SMBs are vital to the travel industry, making up 80 per cent of businesses in the sector, and they directly benefit from the post-pandemic travel rebound.

With business travel expected to surpass pre-pandemic spending levels in 2024, SMBs across food and beverage, tour guides and home-share operators should be well-positioned to capitalise.

To fully harness the potential of this travel rebound, SMBs should not only focus on optimising their payment processes but also tailor their offerings to meet the evolving needs and preferences of the post-pandemic traveler.

This includes embracing digital payment methods favoured by modern travelers and implementing secure and efficient transaction systems.

Moreover, by ensuring their systems can accept payments from inbound tourists, businesses pave the way for the next crucial step in enhancing their financial capabilities – embracing payment interoperability.

Payment interoperability, acceptance are top priorities

In a landscape where user experience is king, SMBs must prioritise offering a seamless and secure consumer payments experience.

It is particularly critical to address potential points of friction in the payments process because users may abandon their online shopping cart if faced with difficulties in completing their purchase leading to missed opportunities that SMBs can ill-afford.

SMBs today have a multitude of options for receiving payments, ranging from digital wallets and cards to account-to-account transfers.

In order to thrive in this evolving ecosystem, SMBs must prioritise implementing a compelling and user-friendly checkout experience, and partner with banks and fintech providers that offer advanced technologies to do so.

In addition, ensuring the safety of transactions with technologies such as tokenisation, biometrics, EMV chips, and predictive analytics play a crucial role in fortifying security measures, providing SMBs with the necessary tools to safeguard their financial transactions and customer data.

Big tools no longer just for big businesses

While SMBs typically adopt a gradual approach to digitalisation, unlike larger companies who are pack leaders, this is set to change.

Over the next year, 91 per cent of SMBs said they are at least somewhat likely to consider available AI tools and services such as ChatGPT to help elevate their business against competitors.

This shift will not only help them reach new audiences but also improve their overall agility in streamlining their processes, enhance efficiency, and stay competitive.

The confluence of these trends signifies that 2024 is the opportune moment for small businesses to leverage digitalisation and payment innovations. Payments are no longer just transactional; they have become an integral part of every business’ strategy for success and resilience.

As small businesses embrace these transformative shifts, they are not merely adapting to change. They are positioned to thrive and redefine the future of commerce on a global scale.

The writer is Visa’s head of merchant sales and acquiring, Asia-Pacific.

Source: The Business Times.  Link: Here

In the short term, the tourism industry in the Sultanate anticipates that there will be over 400,000 tourist arrivals by air in 2026, bringing in an estimated BND300 million in tourism receipts from the arrivals.

Acting Director of the Tourism Development Department at the Ministry of Primary Resources and Tourism (MPRT) Salinah binti Haji Mohd Salleh said this during a presentation ceremony, held by the MPRT through the Tourism Development Department, to honour Bruneian recipients of the ASEAN Tourism Standards Awards, at its premises.

“To achieve these targets, we are working closely with current and new partners to explore new markets and launch new and improved products and packages,” she said.

The prestigious recognition was bestowed on Brunei’s entities in conjunction with the ASEAN Tourism Forum 2024 (ATF 2024), themed ‘Quality and Responsible Tourism – Sustaining ASEAN Future’ held on January 26 in Vientiane, Laos.

Permanent Secretary at the MPRT Hajah Tutiaty binti Haji Abdul Wahab was the guest of honour at the event.

“One of the Tourism Development Department’s initiatives was to organise the first Tourism Service Providers (TSPs) Enhancement Workshop that began in February last year,” Salinah said.

Source: Borneo Bulletin Read the full article here

The Proudly Brunei Business Awards, a newly introduced initiative by the Brunei Economic Development Board (BEDB) through Darussalam Enterprise (DARe), concluded its inaugural edition with an award ceremony at Tarindak D’Seni in Bandar Seri Begawan last night.

Deputy Minister of Finance and Economy (Economy) Dato Seri Paduka Haji Khairuddin bin Haji Abdul Hamid, the guest of honour, presented awards to the winners.

BEDB and DARe Acting Chief Executive Officer Daniel Leong said, “The Proudly Brunei Business Awards marks a milestone in our journey towards recognising and celebrating excellence within Brunei’s business community. Through the awards, we firmly believe that by recognising and honouring outstanding achievements, we not only celebrate business successes but also inspire more business to pursue the spirit of innovation and excellence.”

The awards were presented to the winning companies across seven award categories. In the open category, A Ayam Berjaya Sdn Bhd won the business growth award, Poni Group Sdn Bhd the innovation award, GoMamam the startup award, BWN Design Enterprise the youth entrepreneur award and Taurean Bakeshop and Cafe the women entrepreneur award.

In the priority clusters category, SPHI Foods won the food award and Poni Group Sdn Bhd the services award.

This year’s theme ‘Catalysts For A Better Tomorrow’ is a tribute to businesses that achieved growth while making significant contributions in their sectors.

The theme emphasises the role of businesses as catalysts for positive economic change, focusing on priority areas.

It seeks to honour companies that serve as role models, contributing to the development of the local economy and paving the way for a promising future for Brunei. At the heart of the awards is a thorough assessment and evaluation process, which involves various subject matter experts from government agencies and organisations.

Source: Borneo Bulletin

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The Prime Minister’s Office of Brunei Darussalam and the Ministry of Cabinet Affairs of the United Arab Emirates (UAE) signed a memorandum of understanding (MoU) on experience exchange on government development and modernisation, catalysing the formation of strategic partnerships through the Government Experience Exchange Programme (GEEP) during a ceremony at the Madinat Jumeirah in Dubai yesterday.

Signing on behalf of the Government of His Majesty Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah ibni Al-Marhum Sultan Haji Omar ‘Ali Saifuddien Sa’adul Khairi Waddien, Sultan and Yang Di-Pertuan of Brunei Darussalam was Minister at the Prime Minister’s Office and Minister of Finance and Economy II Dato Seri Setia Dr Awang Haji Mohd Amin Liew bin Abdullah.

Meanwhile, Minister of Cabinet Affairs Mohammad Abdullah Al Gergawi signed on behalf of the Government of the UAE.

The signing of the MoU underscored the two countries’ commitment in advancing go vernment progress, development and modernisation, while simultaneously highlighting the shared vision of the two countries in elevating governance and strengthening international collaboration. The partnership also embodies strategic alliances, emphasising the friendship between the two countries and the dedication to government development while facilitating collaboration through the exchange of experiences and sharing best practices in public service capacity building, climate change and renewable energy strategies.

Brunei Darussalam ranked top five globally in Instagram advertisement reach rate in terms of population ratio aged 18 and above with 85.3 per cent (287,050 people), after Bahrain, United Arab Emirates, Turkiye, and Kazakhstan.

This is according to Digital 2024, an annual report on social media and digital trends worldwide by Meltwater, a global leader in media, social and consumer intelligence, and We Are Social, a socially-led creative agency.

As for digital adoption and use in Brunei Darussalam, January 2024 reported 449.7 thousand Internet users in the Sultanate where 301.0 thousand were also social media users (about 66.3 of the population).

Cellular mobile phone connections were at 617.3 thousand, up by 3.4 per cent (over 20,000 people). This amounted to some 135.9 per cent when compared to the population.

Meanwhile, globally, the report indicated that social media users have reached 5.04 billion.

This equates to 62 per cent of the world’s population. Generally a social media user spends about two hours and 23 minutes each day on their social media platform.

TikTok topped the average time per Android user of any social platform globally, with 34 hours per month or equivalent to more than an hour per day using the platform.

Source: Borneo Bulletin

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The Thailand Board of Investment (BOI) reported a significant increase in investment applications in 2023, reaching a five-year high of 848.3 billion baht (approximately USD 24 billion), representing a 43% increase from the previous year.

As a country with shared borders and strong diplomatic ties, Vietnam emerged as Cambodia’s second-largest trading partner in the first month of 2024, with the exchange of goods between the two nations reaching over $670 million, according to the General Department of Customs and Excise (GDCE).

In January 2024, their trade volume hit $677.62 million, a 41.5% increase from $478.76 million in January 2023. Vietnam now ranks second, following China and ahead of the US, in Cambodia’s list of most significant trading partners.

Exports to Vietnam totalled $373.06 million for the month, a substantial rise of 116.6% from $172.23 million in the same period of 2022. Vietnamese exports to Cambodia slightly decreased by 0.6%, from $306.53 million to $304.57 million. 

The surge in exports resulted in Cambodia’s trade surplus expanding to $68.49 million for the month, from a deficit of $134.3 million in January 2023.

Lim Heng, vice-president of the Cambodia Chamber of Commerce (CCC), told The Post on February 14 that enhanced diplomatic relations have accelerated trade, particularly in exports to Vietnam. 

He said that agricultural products form an important part of the exports, as during harvest seasons, numerous local and Vietnamese traders purchase crops from Cambodian farmers for processing in Vietnam.

He noted that trade between the two ASEAN neighbours is expected to continue growing, bolstered by agreements on cross-border trade flows. 

“The increase in the value of Cambodia’s exports reflects a growth in domestic production capacity. The current balance between exports and imports of Cambodian goods with all partner countries is closer, a departure from the past when import values greatly exceeded exports,” he explained.

“Vietnam is a vital market for Cambodian agricultural products,” he stressed.

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Author: Hin Pisei

Source: The Phnom Penh Post

THE Asean+3 Macroeconomic Research Office (Amro) expects the gross domestic product of the region to grow 4.5 per cent this year, underpinned by resilient domestic demand.

The macroeconomics surveillance organisation on Thursday (Jan 18) maintained its earlier October 2023 projection for the 10 Asean member states, as well as China, Japan and South Korea.

Robust domestic demand continued to anchor the region’s growth, supported by the improving external sector, said Amro.

Other growth drivers included the gradual recovery of China’s property sector and the anticipated return of tourism to pre-pandemic levels.

Domestic demand main growth engine

In its latest quarterly update, Amro highlighted that private consumption in the Asean+3 region remained firm, on the back of favourable labour market conditions.

The ongoing recovery of the travel industry kept retail sales and services spending strong. As investment approvals increase, investment activity of Asean economies also picked up pace, said Amro.

Conversely, due to modest exports performance, capital expenditure in machinery and equipment in Japan and South Korea remained weak.

Improving external sector

The region’s export performance is improving gradually, noted the report, although the pace of recovery varied widely across economies.

The chip industry’s rebound, especially in advanced semiconductors, benefited exports of the plus-3 economies – South Korea in particular – but not the Asean economies as much.

Exports from South-east Asian nations were dampened by lower global commodity prices and weak demand for non-tech products, such as textiles, the report found.

“The recovery in the global tech cycle is starting to be felt in the region’s export performance, especially for electronics,” said Amro’s chief economist Khor Hoe Ee. “But non-tech exports are lagging in terms of recovery, which is why recent manufacturing sentiment surveys are relatively mixed.”

Meanwhile, tourism continued to lift the region’s service exports, which – as at Q3 2023 – have already exceeded end-2019 values in most Asean+3 economies, excluding tourism-reliant countries such as Thailand and Cambodia.

Amro’s economists anticipate a full recovery to pre-pandemic levels materialising later this year.

China’s recovery

The report highlighted that economic activities in China appeared to be stabilising, with industrial production rebounding to expand at the fastest rate since February 2022 and the services sector growing in Q4 2023.

Private consumption in Asia’s largest economy remained robust, with retail spending strengthening.

Amro expects additional policy support for infrastructure investment to bolster China’s near-term growth momentum.

US, Europe growth moderation loom large

The report raised adverse spillovers from the run-up to the US presidential election in November as a new risk that could impact baseline forecasts.

Amro’s economists cautioned that heated populist debates during the election campaigning in the US could set off stronger protectionist sentiments and measures, resulting in turbulent financial markets.

“The lead-up to the US election in late 2024 could exacerbate policy uncertainty and volatility in financial markets,” said Dr Khor.

Other threats include a spike in global commodity prices, a recession in the US and Europe, and weaker economic growth in China.

In the medium term, geopolitical tensions between the world’s two major powers, China and the US, continue to be the main risk factor for the Asean+3 region.

Longer-term risks include climate change, natural disasters, the emergence of new infectious diseases, and growing cyber threats, said Amro in its report.

Source: The Business Times

Link: Here

IN THE last year, OCBC more than doubled the sustainable financing that it provides to small and medium-sized enterprises (SMEs) to over S$7 billion, up from S$3.3 billion in 2022.

Cumulatively, there are now more than 1,200 SMEs in Singapore and elsewhere in Asia that have taken up sustainable financing with OCBC. Of these, more than 80 per cent are from the built environment, clean transportation, energy efficiency and renewable energy sectors.

The bank also aims to at least double the number of sustainability-linked loans (SLLs) that it has extended to regional enterprises, up from 24 as at 2023, and just one in 2022.

SLLs differ from other forms of sustainable financing in that they require sustainability performance targets to be met at different stages of the loan.

There has been “good momentum” for SMEs to adopt sustainable practices and tap financing to do so, said OCBC head of global commercial banking Linus Goh on Monday (Feb 5).

“Typically, if SMEs watch their peers in the industries start to make a move, they will want to equalise, because they don’t want to be differentiated negatively,” he said at a media briefing for the third anniversary of the bank’s sustainability framework.

For SMEs that are part of a wider supply chain, there is also urgency to adopt sustainable practices as larger companies and multinational firms begin to track Scope 3 emissions, Goh said. These are emissions arising from a company’s entire value chain, including those from suppliers, customers and employees.

Yet, education and awareness remain key barriers for many SMEs in going green, said Goh. In particular, SMEs may lack people with the know-how to implement – and sustain – sustainability-related changes.

OCBC aims to help them on this front, he said. “Our conviction is that at some point soon, the (sustainability) tidal wave will come, and if they are caught straggling with everybody else, they may miss that opportunity.

“So we are reaching out, (and) we’re reaching out in a big way.”

This includes partnering more consultants and third-party verifiers to support SMEs under the bank’s sustainability framework. OCBC also organises webinars and information-sharing sessions for its SME clients, where companies share their experience in taking on green financing.

The framework was launched in Singapore in November 2020 and extended to Malaysia, Hong Kong and Indonesia from 2022.

Source: The Business Times.

Link: Here