MANILA, Philippines - As the Association of Southeast Asian Nations (Asean) Economic Community (AEC) draws nearer, Standard Chartered Bank sees a bigger challenge in bringing small and medium enterprises (SMEs) on board.
Although larger companies have geared up for the AEC, fewer than one-fifth of Asean businesses are prepared, according to a recent survey conducted by the Asian Development Bank and Institute of Southeast Asia.
SMEs generate around 90 percent of Asean jobs and contribute 30 to 50 percent of gross domestic product (GDP) of the region.
“While various programs exist for SMEs at the country level, we need a pan-ASEAN framework of governmental support, highlighting the benefits of the AEC to smaller businesses,” Asean StanChart chief executive officer Lim Cheng Teck said.
By the end of the year, Asean will be integrated, allowing the free flow of products and goods, services, and skilled workers across the 10 member-states.
“By growing the economic pie, all member states of Asean should benefit. The AEC could make Asean businesses more competitive on cost, helping to lift the region to the next level of growth. But to realize this potential, everyone has to pull together,” Cheng Teck added.
He said AEC will help the region “create more jobs, attract foreign investments, increase cross-border trade, grow wealth and improve the lives of its citizens.”
Cheng Teck said he wants to see an Asean that allows businesses and its people move with ease across borders and generates growth and prosperity.
“AEC is a journey rather than a destination. While I agree it will take time to iron out differences and reach common ground, if we keep telling ourselves that it is a journey, it may take much longer than it should,” he added.