ASEAN Seeks to Help MSMEs Better Integrate Into Global Supply Chains

Why It Matters

The initiative could unlock billions in trade for ASEAN MSMEs, but payment and digital infrastructure gaps must be resolved to realize that growth.

Key Takeaways

• ASEAN to launch Center of Excellence for MSMEs regionally
• DEFA aims to enable trusted cross‑border data and digital trade
• Regional payment interconnectivity remains unfinished, hindering online platforms
• 700‑million‑person market poised for increased investment and jobs
• Philippines’ chairmanship links MSME support with energy‑crisis challenges

Summary

At the 48th ASEAN summit, the Philippines, holding the chairmanship, announced the creation of an ASEAN Center of Excellence for micro, small and medium‑enterprises (MSMEs) to help them join global supply chains. The centre will coordinate programs, projects and initiatives across the bloc, leveraging the region’s 700 million‑person market and its role as a production hub.

Key policy moves include the pending Digital Economic Framework Agreement (DEFA), slated for signature later this year, which will facilitate trusted cross‑border data flows and end‑to‑end digital trade. The agreement is expected to broaden market access for both goods and services, attract investment, and generate jobs. However, officials warned that regional payment interconnectivity remains unfinished, a critical gap for e‑commerce platforms.

The video highlighted local Cebu artisans crafting culturally inspired trinkets, such as Sagittaria‑flower accessories, underscoring the creativity of ASEAN’s MSMEs. Representatives from the hotel and services sectors expressed relief that the summit’s initiatives provide a lifeline amid the Philippines’ current energy emergency.

If successful, the Center of Excellence and DEFA could transform ASEAN’s MSME landscape, unlocking new export opportunities and digital integration. Yet, without robust payment infrastructure, the promised boost to trade and employment may fall short, prompting policymakers to prioritize interoperable financial systems.

Original Description

One of ASEAN's key priorities is to keep trade flowing amid the Middle East crisis, while also advancing inclusivity by helping micro, small- and medium-enterprises (MSMEs) better integrate into global value chains. CNA Senior Correspondent Melissa Goh takes a closer look at what this means for the MSME community in countries like the Philippines, and the opportunities ahead.