ASEAN Integration Report 2024 - Inclusive Trade: Perspectives on Regulatory Challenges for MSMEs in ASEAN
Indonesia and Thailand play crucial roles in ASEAN's efforts to integrate micro, small, and medium enterprises (MSMEs) into global trade. Despite MSMEs making up 97% of businesses and employing 85% of the workforce in ASEAN, their contribution to exports remains low. In Indonesia and Thailand, non-tariff measures (NTMs) and regulatory complexities disproportionately affect MSMEs, limiting their ability to scale and compete internationally. Addressing these barriers is essential for increasing market access and trade facilitation.
To enhance MSME participation, Indonesia and Thailand must streamline NTMs, improve access to digital trade, and support financial inclusion. Regional cooperation in policy harmonization and trade facilitation will be vital to ensuring MSMEs can integrate into global supply chains and contribute more significantly to economic growth.