ILOILO CITY—Micro, small and medium enterprises (MSMEs) in the region got a major boost, after the business sector and ministers of the 21-member Asia-Pacific Economic Cooperation (Apec) considered the adoption of the so-called Iloilo Initiative that advances the interest of MSMEs in global trade and investments.
On the last day of the Small and Medium Enterprises Ministerial Meeting here on Friday, the Apec Business Advisory Council (Abac) prioritized the inclusion of e-commerce to accelerate the access of MSMEs to international markets by promoting innovation and participation in the global value chain, as well as by ensuring better financing and affordable credit for the sector.
Trade Secretary Gregory L. Domingo said the MSMEs play a vital role in the realization of a prosperous Asia-Pacific region, as they comprise the great majority of businesses. An important component is to bolster the ability to take advantage of cross-border business opportunities that will help boost economies in the process.
MSMEs account for over 97 percent of all enterprises and employ over half of the work force across Apec economies.
MSMEs also contribute significantly to economic growth, with their share in the gross domestic product ranging from 20 percent to 50 percent in the majority of Apec economies. However, they account for only about 35 percent of direct exports. Director Jerry T. Clavesillas of the Department of Trade and Industry (DTI) Bureau of Small and Medium Enterprise Development said the Philippines has over 1 million DTI-registered MSMEs. Western Visayas alone has over 16,000 registered MSMEs.
The Abac, chaired by Doris Magsaysay-Ho, underscored the need to leverage the growing Internet usage, burgeoning middle class, and the increasing accessibility and affordability of technology to enable MSMEs to enter the global market. E-commerce has also evolved into a regular marketplace option for many buyers.
An important measure that is relevant to the innovation agenda is that of strengthening the digital infrastructure and leveraging the digital economy to accelerate MSMEs’ participation in the global value chain, the Abac chairman added.