Private Sector Perspectives on MSME Challenges and ASEAN Support Initiatives

Micro, small, and medium-sized enterprises (MSMEs) in the Association of Southeast Asian Nations (ASEAN) continue to face interconnected challenges in market access, finance, trade integration, digitalisation, and the green transition. A regional survey of 106 respondents in the 11 ASEAN Member States shows that the category of market access, trade integration, and standards is the most serious constraint, while businesses also face challenges in finding overseas buyers and accessing trade finance. Existing ASEAN MSME initiatives show potential but have limited reach: overall awareness is only 20.75%, while 80.2% of respondents have never participated in ASEAN’s MSME initiatives.

This paper consequently recommends strengthening regional coordination and connectivity, making market access and internationalisation a core function, establishing a single navigation and referral mechanism, integrating digital and green transition support, developing structured partnerships, strengthening local and inclusive access, and establishing a regional MSME knowledge and monitoring function. Together, these functions could be institutionalised through a dedicated regional coordination mechanism, potentially including an ASEAN Centre of Excellence for MSMEs that continuously learns from MSME needs, while complementing rather than duplicating existing ASEAN initiatives.