The agreement was reached during the Special ASEAN Economic Ministers (AEM) Virtual Conference Meeting on COVID-19 Responses.

The meeting discussed the joint efforts taken by ASEAN countries to deal with the COVID-19 pandemic, and followed up on an agreement reached by the heads of states and governments of ASEAN in the Declaration of the Special ASEAN Summit on Coronavirus Disease 2019 and the previous ASEAN Economic Ministers (AEM) meeting, which produced the AEM's Statement on Strengthening ASEAN's Economic Resilience in Response to the Outbreak of COVID-19.

"Indonesia and the ASEAN economic ministers are committed to exploring mechanisms to maintain supply chain connectivity and ensure the smooth flow of trade in essential goods in the Southeast Asia region, particularly those related to handling the COVID-19 pandemic," Deputy Trade Minister Jerry Sambuaga said in a statement in Jakarta on Friday.

At the meeting, ASEAN economic ministers also agreed on the Hanoi Plan of Action on Strengthening the ASEAN Economic Cooperation and Supply Chain Connectivity in Response to the COVID-19 Pandemic, he added.

The agreement includes cooperation in enabling trade of important goods (food, medicines, medical equipment, and other related products), as well as assisting production of and improving access to COVID-19 medicines and vaccines through the strengthening of supply chain connectivity.

Governments and businesses in ASEAN are committed to working together to deal with the COVID-19 pandemic, including in efforts to mitigate the adverse impact of the pandemic in the social and economic fields.

Several business sectors in ASEAN have been negatively affected by the COVID-19 pandemic, including travel, essential goods and related supply chains, medical services, and digital tools.

The Vice Minister of Trade urged all countries to work together to arrest and stop the spread of COVID-19.

"The Indonesian government is prioritizing the protection of public health, while maintaining that the production and distribution chain of important goods, both domestically and abroad, continues to run smoothly," he concluded.

Source: Antara News

Reporter: Sella P, Azis Kurmala

Editor: Sri Haryati

Original published date: 6 June, 2021

Read full article here https://kalsel.antaranews.com/berita/176084/indonesia-asean-agree-to-keep-trade-open-amid-covid-19

Good News for Indonesia comes from Switzerland, although the global economic situation has not yet recovered due to the impact of the pandemic, Indonesia persisted and managed to record a trade surplus with Switzerland. Indonesia's trade performance strengthened and showed a surplus in May 2021, after declining in the previous months this year.

According to the Swiss Federal Customs Administration/FCA, the total value of Indonesia's exports to Switzerland in the January-May 2021 period is USD 782 million. Meanwhile, the value of Indonesia's imports from Switzerland is USD 159 million USD. Thus, Indonesia-Switzerland trade reached a surplus for Indonesia of USD 623 million during the first 5 months of 2021.

“This is good news, although world trade tends to decline, Indonesia can still maintain a trade surplus with Switzerland. We hope that in the future the value of Indonesia's trade surplus to Switzerland will remain," said the Indonesian Ambassador to Switzerland and Liechstentein, Prof. Muliaman Hadad, Ph.D.

The positive developments in the trade sector are expected to be the main capital in efforts to recover the economy for both countries. The momentum of the trade surplus recorded by Indonesia against Switzerland is also expected to contribute to the economic recovery process and help build back better efforts.

There has been a shift in the order of Indonesia's main export commodities, especially in turbine engines and spare parts, furniture, and essential oils. When viewed from the value, all three experienced an increase in the January-May 2021 period compared to 2020 in the same period.

Indonesia - The EFTA CEPA (IE-CEPA) is an important agreement and it is hoped that through this agreement the opportunities will be more open for market access for trade in goods, services, and investment so that it will further encourage the strengthening of bilateral economic cooperation between Indonesia and Switzerland. Quoted from the EFTA page, Switzerland is the highest importing country from Indonesia compared to other EFTA countries, which is more than 65% of the total imports of EFTA countries from Indonesia.

The IE-CEPA does not only cover cooperation in trade in goods and services, but also investment. This year, for the first time, Switzerland is in the 5th Foreign Direct Investment list in Indonesia in first quarter of 2021.

Source: The Ministry of Foreign Affairs of the Republic of Indonesia

Original published date: 29 June, 2021

Read full article here https://kemlu.go.id/bern/en/news/14217/indonesia-successfully-recorded-a-trade-surplus-with-switzerland

Enhancing the competitiveness of the local business environment and enabling a transparent government to provide its citizens with equitable access to public services and their data by utilising digital technology are central to Thailand’s national development plan, “Thailand 4.0”. The advancements made by Thailand in implementing its digital government policy will spearhead the digitalization of the private sector and enhance the access of both citizens and businesses to public sector data to drive the country’s overall economic competitiveness.

The demand for data centres and cloud technology in Thailand has been underpinned by the country’s high internet and mobile internet penetration, with individuals and consumers spending more time online and companies adapting to the new business norms of work-from-home and the gig economy. These changing behaviours have been spurred by consumer confidence in the country’s communications infrastructure, 5G technology and legal framework as well as the government’s facilitation of the digital economy.

At the corporate level, the data centre market has been driven by companies’ preference for having carrier-neutral colocation data centre capacity for their network and IT services, while the growing use of digital platforms in the financial and telecommunication industries as well as content and digital media requirements have also contributed to the rising demand. Looking ahead, the data centre industry is expected to continue enjoying healthy demand with more organisations adopting cloud technology, big data and analytics, and Internet of things colocations as businesses look for more stable and affordable resources for server storage, data analytics and connection. Indeed, the proliferation of tech companies, IT service providers and e-commerce companies has resulted in a shift towards hyperscale colocation data centres

Thailand 4.0 Drives Demand for Colocations

A key prong of the “Thailand 4.0” national development plan, which seeks to promote the adoption and innovation of digital and automation and robotics technology among SMEs, manufacturing companies and the service sector will underpin the robust demand for data centres. With its focus on ensuring Thailand embraces the opportunities that arise from digital technology to improve its citizens’ quality of life, the participation of all in political governance and the country’s economic competitiveness through initiatives such as the Smart City Development project, big data platform and analytics for agricultural, education and healthcare policies and investment in digital infrastructure, Thailand 4.0 is set to lead to further demand in this segment.

Thailand is witnessing explosive growth in carrier-neutral colocation data centre services from the arrival of new players as well as the capacity expansion of existing providers. Thailand currently houses a total of 18 colocation data centres1 with approximately 400,000 sqft of multi-tenant data centre (MTDC) operational space in 2019.2

With its competitiveness in ICT, the strength of its basic infrastructure, its skilled workforce, the support from its public sector and its strategically advantageous location, Thailand is well positioned to become an important destination for colocation data centres that serve the demand of businesses operating within the Association of Southeast Asian Nations (ASEAN).

Pandemic Spurs Digital Way of Life

As people increasingly logged on to manage ever more aspects of their daily life in an effort to overcome the challenges posed by the COVID-19 pandemic in 2020, the “Global Digital Report 20216” confirms the remarkable trends of Thai citizens’ engagement in the digital world. Indeed, the almost nine hours that Thai internet users spend in front of a screen each day is not only above the global average but the 9th highest in the world.

Thailand was ranked third in the world for ecommerce adoption with 84% of the country’s internet users having bought something online over the previous month, trailing only Indonesia and the UK, and comfortably above the global average of 77%. The country was also ranked fifth for using QR codes with 60% of its internet users utilising this service in December 2020. The country also recorded the highest number of transactions through mobile banking and financial transaction apps in 2020, possibly thanks to the government’s digital co-payment scheme as part of its relief package for people affected by the pandemic.

BOI Promoting the Digital Ecosystem

To further strengthen the ecosystem of the digital industry, Thailand’s Board of Investment (BOI) is currently promoting the digital industry through tax and non-tax incentives, with a focus on three groups, namely, software development, digital infrastructure and digital ecosystem supporting businesses. 

Source: Bangkok Post

Read the full article here

SME Bank, an agency under the Ministry of Entrepreneur Development and Cooperatives unveils its RM3 billion Sukuk Wakalah Programmes and will become the first Development Financial Institution (DFI) in the country to issue Sustainability Sukuk to meet its funding and working capital requirement moving forward.

Minister of Entrepreneur Development and Cooperatives, YB Dato Sri Dr Hj Wan Junaidi Bin Tuanku Jaafar said, “The Sustainability Sukuk issuance by SME Bank is timely during this time of crisis whereby there is a need of balance in doing business for profit and doing good to fulfil our obligations towards the environmental, social and governance (ESG) factors. SME Bank’s effort to be part of the global trend is a smart move to secure a strong financial imprint in the country’s financial landscape for now and in the future.”

“Taking from this significant development, one important issue surfaces and that is, where are all our Small Medium Enterprises (SMEs) in this space of placing ESG in their DNA? There will come a time ESG will be the norm and our SMEs should be ready and willing to adopt its principles in their daily operations.  The Government, banks and relevant stakeholders who have the capacity to invoke change should take the lead and push for continuous transformation by the SMEs,” he added.

The Chairman of SME Bank, Dato’ Seri Nazir Ariff said, “SME Bank has continued to fulfil its mandate to nurture and develop the nation’s SMEs, backed by the strong support from the Government and all our stakeholders. The AAAIS ratings accorded by the Malaysian Rating Corporation Berhad (MARC) for this Sukuk Wakalah Programme is a testament of our strength and commitment in upholding this virtue.”

Dato’ Seri Nazir added, “SME Bank has been incorporating ESG elements in carrying our mandate since its establishment and with our very own ESG Framework, coupled with its Sustainability Sukuk Framework, it is a step towards reaffirming and deepening the Bank’s vision and mission and raising awareness among the community about the importance of sustainable development. At the same time, it demonstrates our commitment in creating positive impacts on society and the environment.”

Aria Putera Ismail, SME Bank’s Group President/Chief Executive Officer said, “The proceeds from the Sustainability Sukuk issuances will be channeled to finance projects that directly support 11 of the 17 United Nations Sustainable Development Goals (SDGs).”

Aria added, “The 11 categories chosen are aligned with the green and social project categories recognized by the ASEAN Sustainability Bond Standards (ASEAN SUS), ASEAN Social Bond Standards (ASEAN SBS) and ASEAN Green Bond Standards (ASEAN GBS) issued by the ASEAN Capital Market Forum (ACMF). In addition, the 11 categories are also aligned with the Sustainability Bond Guidelines (SBG), Green Bond Principles (GBP), Social Bond Principles (SBP) issued by the International Capital Market Association (ICMA) and follow the standard guidelines from the Sustainable and Responsible Investment Sukuk Framework issued by the Securities Commission Malaysia.”

Aria said, “The green project categories target six initial key sectors which are energy, manufacturing, transport, building, waste and water. These sectors have been identified by the Green Technology Master Plan to facilitate green growth in Malaysia. While the focus of the social project categories is on creating decent work, improving gender equality, and providing economic opportunities to the unserved and underserved social groups in the country. With the issuance of the Sustainability Sukuk, SME Bank is in the right position to promote and educate the importance of incorporating the ESG in business operations to all SMEs. This will enable them to build sustainable businesses, grow bigger and become enterprises that meet international standards.”

SME Bank’s sustainability agenda is also in line with BNM’s Performance Measurement Framework, which emphasises on the importance of DFIs to incorporate additionalities as part of their business operations to promote greater development outcomes and strengthen their accountability as public institutions.

The Sole Principal Adviser/Sole Lead Arranger for this Sustainability Sukuk program exercise is RHB Investment Bank Berhad and the Joint Lead Managers (JLMs) are AmInvestment Bank Berhad, CIMB Investment Bank Berhad, Maybank Investment Bank Berhad and also RHB Investment Bank Berhad. Earlier during the day, SME Bank and JLMs had organized a virtual Group Investor Presentation explaining on the Sukuk Wakalah Programme and its target maiden Sustainability Sukuk issuance to potential and interested investors.

Since its establishment in 2005, SME Bank has stayed true to its mandate of supporting the growth of the SMEs through financing as well as beyond financing efforts. Up to date, SME Bank has approved over RM35 billion worth of financing to more than 19,000 customers who majority of them came from the underserved and unserved SMEs.

Through Centre for Entrepreneur Development and Research Sdn. Bhd. or CEDAR, the Bank’s wholly-owned subsidiary, SME Bank has trained and coached more than 60,000 participants at various levels of development through dedicated programmes. This commitment is in line with the SDGs to enhance the living standards of those around us by meeting SMEs financial needs and delivering exemplary services.

SME Bank’s Sustainability Sukuk Framework and the Second Opinion Report by the External Reviewer, MARC are now available at the Bank’s official website, www.smebank.com.my for viewing. 

The Philippines, through the Department of Trade and Industry’s Bureau of Philippine Standards (DTI-BPS), chaired the 17th Meeting of the Task Force on Wood-Based Products (TFWBP) last 21 May 2021 via video conferencing. Engr. Myra Magabilin, Supervising Trade-Industry Development Specialist of the BPS Standards Development Division (SDD), led the meeting while Mrs. Pattaraporn Krongyuth, Standards Officer of Thai Industrial Standards Institute (TISI), Thailand served as the vice-chair.  PH will chair the TFWBP meetings for three years or until 2023.

The TFWBP assists the ASEAN Consultative Committee on Standards and Quality (ACCSQ) Working Group 1 on Standards and Mutual Recognition Arrangements in addressing the Technical Barriers to Trade for wood-based products sector to support trade facilitation initiatives towards the realization of the ASEAN single market and production base. TFWBP deals with wood-based products for structural and non-structural use such as sawn timber, wood-based panels (e.g. plywood), builders’ joinery and carpentry (BJC), laminated veneer lumber, glued and cross laminated timber, bamboo and rattan, and other wood composites.  TFWBP also discusses the safety, health and performance requirements for wooden furniture such as those made of bamboo and rattan.

Among the topics discussed in the 17th TFWBP Meeting were the identification of wood-based standards, technical assistance and capacity building for wood-based products sector in cooperation with the Japanese Industrial Standards Committee (JISC) and International Organization for Standardization (ISO), and information exchange on the 2019 import and export figures for wood-based products from AMS including the classification of wood-based products according to International HS Codes. 

Engr. Rheychelle Jean Pidoc, Senior Trade-Industry Development Specialist from BPS-SDD and Head of Philippine Delegation, shared the latest progress and development on standards from the five Working Groups under the ISO/TC 296 on Bamboo and Rattan.  Engr. Pidoc also shared the country’s adoption of five (5) newly published ISO standards (i.e. ISO 21625:2020, ISO 21626-1:2020, ISO 21626-2:2020, ISO 21626-3:2020, and ISO 23066:2021) as Philippine National Standards (PNS).

In addition, the Philippines discussed the Department Administrative Order (DAO) No. 20-06, Series of 2020 – The New Technical Regulation Concerning the Mandatory Product Certification of Plywood, which aims to strictly ensure that plywood to be manufactured, imported and distributed in the Philippines meets the specified quality requirements as required under the technical regulation. The reference standards of DAO 20-06:2020 are PNS ISO 12465:2017 Plywood – Specifications and PNS 2103:2017 Plywood – Formaldehyde emissions – Specification for test requirements/methods.

The Philippines, through the DTI-BPS, is a participating member to the ISO Technical Committee on Bamboo and Rattan (ISO/TC 296) since 2015. Currently, Atty. Dulce Blanca Punzalan, President and COO of Filbamboo Exponents, Inc. is the Convenor for Working Group on Bamboo Charcoal (WG 3). Likewise, Dr. Rico Cabangon, Chief of the Engineered Products Development Division under the Department of Science Technology – Forest Product Research and Development Institute (DOST-FPRDI) and BPS/TC 76 Bamboo and Rattan Chairman, is the Convenor for Working Group on Engineered Bamboo (WG 5).

Originally published last June 28, 2021.

Read the original news article here.

MANILA, 17 June 2021 – The Philippines and Switzerland successfully convened the 4th Meeting of the Joint Economic Cooperation (JEC) under the chairmanship of Dr. Ceferino S. Rodolfo, Undersecretary for Industry Development and Trade Policy of the Department of Trade and Industry (DTI), and Ambassador Erwin Bollinger, Head of Bilateral Economic Relations of the State Secretariat for Economic Affairs (SECO).

The meeting marked the 8th anniversary of the bilateral JEC since it was established in June 2013, as well as the 3rd anniversary of the Philippines-European Free Trade Association Free Trade Agreement (PH-EFTA FTA) since the agreement entered into force on 1 June 2018.

The JEC meeting serves as an avenue to discuss trade, investment, economic cooperation, and related matters to forge closer bilateral trade and investment ties between both countries. Undersecretary Rodolfo remarked, “We believe that through this JEC and the PH-EFTA FTA, the Philippines and Switzerland can keep the positive momentum in our relations in the coming years. We continue to accord high importance to the JEC, as it will serve as an instrumental mechanism for us to identify our complementarities and build synergies in areas of mutual interest—in trade, investment, renewable energy, agriculture, and innovation to name a few.”

Under the context of economic recovery from COVID-19, both sides exchanged updates on respective economic recovery strategies. Undersecretary Rodolfo took the opportunity to underline the improvement of the Philippines’ economic performance and progress on the country’s economic policy reforms, including the recent passage of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act. Both sides also acknowledged the increased collaboration amidst the pandemic, such as the Swiss support for the Philippines’ PPE manufacturing sectors through the Global Quality and Standards Program (GQSP). The forthcoming finalization of this GQSP project is aligned with the DTI’s thrust towards building strong domestic production of internationally certified medical-grade PPEs.

Moreover, discussion covered the implementation and promotion of the PH-EFTA FTA. Undersecretary Rodolfo highlighted, “Since the FTA entered into force in June 2018, the Philippines was able to turn around its trade deficit with EFTA. In 2019, the Philippines posted a trade surplus of USD47 million. Total trade between the Philippines and EFTA likewise increased by 2.40% from USD802 million in 2018 to USD821 million in 2019. For 2020, this surplus even grew to USD109 million despite the COVID19 pandemic. Exports to EFTA likewise increased by 6% in 2020 from USD434 million in 2019 to USD461 million in 2020”. Top Philippine agricultural and food products exported to Switzerland under the PH-EFTA FTA include desiccated coconuts, prepared/preserved tuna, juice of tropical fruit, food preparations, tropical nuts, and raw cane sugar, among others.

The JEC Co-chairs also welcomed the establishment of the informal working group for the PH-EFTA FTA promotion and development of an online interactive FTA web tool, as well as DTI’s advocacies and plans in the pipeline. These include the upcoming DTI-led promotion webinar series this year, which aims to increase exporters’ awareness of the PH-EFTA FTA. This is composed of three series, namely, (a) Understanding the PH-EFTA FTA by Chapter; (b) Understanding the PH-EFTA FTA by Product/Sector, and (c) How to Export in EFTA.  

Complementing initiatives to further maximize the benefits brought about by the PH-EFTA FTA, both sides exchanged updates regarding the market studies on the Philippines’ natural ingredients, processed food, and value-added textiles sector conducted by the Swiss Import Promotion Program (SIPPO). Highlighting the Philippines’ market advantages, these market studies mentioned the country’s large pool of skilled and high-resource English-speaking workforce, high potential in the development of technologies for the processing of native raw material into high-quality natural ingredients, and international reputation to be a 1A origin for many tropical processed foodstuffs, among others. The JEC meeting likewise featured cooperation initiatives and prospective opportunities in investment and Swiss’ strong industrial areas, such as agriculture, renewable energy, and innovation. On the latter, Undersecretary Rodolfo noted the concrete partnership in which the Bern University of Applied Sciences worked with the Philippines to develop an environmentally friendly technology for transforming agricultural byproducts, such as coconut husks, to produce an innovative product with construction applications.

A key highlight of the JEC meeting was the participation of the private sector representatives from chemical, mechanical & electrical, pharmaceutical, watch, elevator/escalator manufacturing, and management service industries. Swiss businesses welcomed the economic reform initiatives undertaken by the Philippines to improve the business and investment environment and to enhance the competitiveness of the country. This special portion provided an opportunity for the Philippines to further clarify its current business and regulatory regime and for both countries to promote sound business-to-business cooperation and to ensure that the JEC outcomes will be commercially meaningful. Prior to the JEC meeting, DTI successfully held the virtual business forum titled ‘Philippines and Switzerland: Investing Together for a Better Future’, which highlighted the two countries’ complementarities on specific areas such as clean technology and renewable energy, infrastructure development, and life sciences.

In 2020, Switzerland remained to be one of the Philippines’ important economic partners in Europe—placing as the country’s 22nd trading partner (up by 6 notches from 28th in 2019 to 22nd in 2020) and 24th investment partner (up by 8 notches from 32nd in 2019 to 24th in 2020). Total trade with Switzerland amounted to about USD 771.29M. These figures are foreseen to steadily increase given the PH-EFTA FTA in place combined with the promotion and cooperation activities being pursued under the JEC.

The Department of Trade and Industry (DTI) and the Technical Education and Skills Development Authority (TESDA) signed on 25 June 2021 a Memorandum of Agreement (MOA) with 16 Industry Associations representing the various logistics services sector to advance a competitive and future-ready logistics workforce through training and skills development.

“This agreement with TESDA signals the government’s ongoing support for the logistics services sector and we recognize its importance to our economy as key employment generating sector. This is part of the sector’s Ten Commitments, which was agreed on in 2018,” said DTI Secretary Ramon M. Lopez.

The trade chief added that under the MOA, TESDA shall give priority to workers in the logistics services sector through the conduct of programs with training regulations or non-registered programs. TESDA will also include the logistics sector in its Tulong Trabaho Scholarship Program.

Complementing this effort is the adoption of the Philippine Skills Framework for Supply Chain and Logistics (PSF-SCL), a product of an agreement between the DTI, TESDA, and SkillsFuture Singapore. The PSF-SCL, the first among the priority industries, includes information on Sector and Employment Opportunities, Career Pathways, Occupations and Job Roles, Functional Skills and Competencies, and Enabling Skills and Competencies.

DTI noted the following reasons why a skills framework is important:

• Employers can assess their logistics manpower requirements, adapt or modify the standard guidelines for work performance, key tasks, skills and competencies, for purposes of recruitment and selection, hiring, job rotation, and promotion. 
• Education and training institutions can educate students and learners about the sector, as well as make curricula for the facilitation of learning of required skills and competencies that are more aligned to industry needs.
• Individuals are equipped to make informed decisions about career choices, as well as take responsibility for skills upgrading and career planning. 

In 2018, DTI, together with the Department of Transportation (DOTr) and the private sector—composed of industry associations representing cargo handling, storage and warehousing, freight transport, and customs brokerage services—agreed on the Ten Commitments to transform the logistics services sector as an efficient enabler of the manufacturing, agriculture, and service industries.

Commitment No. 10 states that both government and private sector “shall develop a competitive and future-ready logistics workforce that will address the current and future needs of the logistics services sector.  We will invest in the development of programs and policies that will allow those working in the sector to effectively fulfill their responsibilities to customers and stakeholders alike. We shall develop our people to be an indispensable tool for businesses both here and around the world.  We shall also take the opportunity to increase awareness of the logistics service sector’s role in economic development.”

“We’ve all seen the important role of the logistics services sector in the economy during the time of the pandemic. The heightened awareness of the public has now brought increased consumer expectations,” Sec. Lopez said.

He added, “While the government continues to address the challenge of logistics cost, we cannot neglect the needs of the industry, which is the availability of a skilled workforce. Today and in the years to come, upskilling and reskilling is a must to provide more employment and better opportunities for our people.”

Originally published last June 29, 2021.

Read the original article here.

Despite the extremely challenging environment in 2020, the momentum of Southeast Asia’s digital economy has clearly not been derailed.

Google, Temasek and Bain recently reported that Southeast Asians spent, on average, an hour more a day on the internet during COVID-19-imposed lockdowns, accessing essential goods, healthcare, education, and entertainment. The region added 40 million new internet users in 2020 and they are here to stay – 94 percent of new digital service consumers intend to continue with the service post-pandemic.

HealthTech and EdTech played a critical role during the pandemic, with impressive adoption rates. E-commerce, online media and food delivery adoption and usage surged – the region’s digital economy hit US$100 billion in Gross Merchandize Value (GMV) last year, with Vietnam and Indonesia experiencing double-digit growth. GMV is on track to exceed $300 billion by 2025.

Maximizing the immense potential of the digital economy will undoubtedly be vital to the region’s overall economic recovery efforts. At the heart of these efforts sits the engine of Southeast Asia’s diverse and dynamic economy – the micro, small, and medium-sized enterprises (MSMEs). MSMEs account for 95 percent to 99 percent of all business establishments and more than half of the total employment in all ASEAN member states. SMEs also contribute 30 percent to 53 percent to each member state’s gross domestic product. Digitalization of the region’s MSMEs so that they may contribute more significantly to the digital economy is thus crucial.

To that end, governments in the region must consider policies that encourage greater entry and participation of MSMEs in the digital economy, spur innovation, and empower these businesses with the ability to grow and invest for the future.

Across Southeast Asia, the pandemic pushed many traditional businesses to adopt new ways of selling to customers and accept digitalization as the way forward, accelerating the region’s overall digital transformation. Sea Insight’s research shows this can have significant and lasting positive economic impact for SMEs’ revenue and productivity.

As we look to recover from the devastating economic impact of the pandemic, governments in the region need to seize the opportunity to help MSMEs build resilience and emerge stronger by accelerating digitalization and building an inclusive digital future. This requires a unified and collaborative approach between the public and private sectors, whether it is in co-developing digitalization initiatives or adopting a consultative approach in policy making.