Digitalisation has added substantial value to global value chains and trade activities. However, the primary beneficiaries have been large enterprises, those equipped with significant resources to embrace the digital transformation of trade. Despite the presence of over 70 million MSMEs in ASEAN, constituting about 98% of total enterprises in the region, their contribution to trade, specifically exports, stands at only 19%. This is notably lower compared to MSMEs in the European Union which account for around 40% of intra-EU exports and 30% of extra-EU exports. Bridging this gap and unlocking the full growth potential of the region requires making digital trade more accessible to MSMEs.
To achieve inclusive digital trade and foster regional growth, MSMEs must have the capacity to digitalise their business models in a manner that is safe, cost-effective, and seamlessly integrated into the broader economic landscape of ASEAN. From a governance perspective, the adoption of digital trade standards becomes crucial in creating a safe, cost-effective, and
seamless trade. This, in turn, reduces the financial, administrative, and strategic burdens associated with digitalisation for MSMEs, thereby making digital technologies more accessible and encouraging greater MSME participation in digital trade.
This session aims to share hands-on experiences and insights from the public sector that have facilitated a more inclusive digital trade through the adoption of digital standards. Followed by the challenges faced by MSMEs in ASEAN, the session will highlight priority areas in digital trade that call for standardisation and connect them with innovative digital solutions that, through trade standards harmonisation, have the potential to pave the way for easier and more extensive exports, fostering growth of the region overall.
