ASEAN Summit must prioritise MSMEs for real economic integration, says Samenta

AS Malaysia prepares to host the Asean Summit 2025, the region’s micro, small and medium enterprises (MSMEs) must be placed at the heart of its economic integration agenda, according to the Small and Medium Enterprises Association Malaysia (Samenta).

Samenta National President Datuk William Ng (picture) said the upcoming summit represents a “once-in-a-generation economic opportunity” for ASEAN to empower its MSMEs and unlock the region’s true growth potential.

“There can be no real Asean integration without real SME inclusion,” Ng said in a strongly worded media statement issued today.

While MSMEs make up over 97% of all businesses in Asean and employ more than 85% of the workforce in several member countries, they only contribute 30–40% of the region’s GDP and a disproportionately small share of intra-ASEAN trade, Ng pointed out.

He attributed this gap to structural barriers that prevent MSMEs from scaling and integrating into regional value chains.

These include inconsistent product standards, non-digitised customs procedures, fragmented regulations in agriculture and services, and disparate licensing regimes.

“Asean must take bold steps to address these issues through enforceable agreements on NTB [non-tariff barrier] reduction, expanded mutual recognition arrangements (MRAs), and greater operationalisation of the Asean Single Window for MSMEs,” he urged.

Ng also highlighted the strategic advantage Asean currently holds as global supply chains shift away from overreliance on single countries.

He called on Asean to position itself as a neutral and business-friendly bloc capable of attracting investment and supply chain realignments – provided MSMEs are not left behind.

“If MSMEs are left behind in this transition, Asean risks entrenching economic dualism and widening inequality,” he cautioned.

Beyond trade facilitation, Samenta is urging ASEAN leaders to focus on innovation and industrial upgrading to lift MSMEs out of the “middle-income trap.”

This includes dedicated innovation grants, cross-border talent exchange platforms, and regional R&D centres.

Ng also called for inclusivity in digital and ESG (environmental, social, and governance) frameworks.

“The Asean Digital Economy Framework Agreement (DEFA) must be inclusive by design… ESG standards must be realistic and phased for smaller firms; prioritising support and incentives over punitive enforcement,” he said.

He further emphasised the need to harness the creative economy as a new frontier for growth, especially for youth and women-led enterprises.

“The creative economy… is scalable, culturally rooted, and exportable. Asean must include the creative economy in its regional economic integration strategy,” he said, adding that strong copyright and IP protection, market access, and mobility for creative professionals are essential.

In conclusion, Ng urged Asean leaders to make the Kuala Lumpur summit a turning point by reducing NTBs, leveraging global supply chain shifts, and ensuring MSMEs are placed at the core of the region’s economic future.

“A resilient Asean must start from the ground up, with our small businesses at the core of our shared future,” he said. — TMR