Empowering Micro Businesses in Southeast Asia: Addressing Challenges and Harnessing Opportunities for ASEAN Economic Integration
Date:
30 September 2024Category:
Connectivity, ASEAN, Regulation and GovernanceType:
Policy BriefsTags:
MSMEs, digital inclusion, micro businesses, economic integration, ASEANPrint Article:
Micro, small, and medium-sized enterprises (MSMEs) form the backbone of Southeast Asia’s private sector, with microbusinesses comprising a significant majority. However, many operate informally, posing challenges for state recognition and assistance, particularly when youth manage these enterprises. More available data are needed to prioritise microbusinesses within economic policy. Nonetheless, microenterprises stand to benefit significantly from the region’s robust digital, transportation, and cultural connectivity, making enhancements in these areas crucial for their success. To address these challenges, policy recommendations focus on empowering youth in the micro-economy through digital inclusion initiatives and greater participation in decision-making processes. Additionally, enhancing cross-border payment systems is essential for promoting innovation and digitalisation in payment systems. Standard harmonisation, the adoption of shared data frameworks, and regulatory frameworks are necessary for facilitating faster cross-border transactions and minimising disruptions in payment systems.
