US Aids ASEAN MSMEs in shifting to a Digital Economy

The US-Association of Southeast Asian Nations Business Council (US-ABC) and the US Agency for International Development (USAID) have partnered with the Philippines’ Department of Trade and Industry (DTI) to launch an online learning platform to help MSMEs accelerate business recovery.

According to Trade Undersecretary Rafaelita Aldaba, the ASEAN SME Academy 2.0 platform will provide training and mentorship to enhance ASEAN MSMEs’ capabilities to grow and compete.

“ASEAN SME Academy 2.0 could help facilitate the digital transformation of MSMEs and accelerate a broader economic recovery to achieve a more inclusive and sustainable post-pandemic future in the ASEAN region,” Aldaba said.

The academy was established last 2015 through a joint initiative between the US-ABC, UASID, and the ASEAN Coordinating Committee on MSMEs.

The platform’s new upgraded features include courses on multi-language support, a new visual and mobile-friendly interface, online resources for MSMEs, and self-certification. Aldaba stated that there is a high demand for smaller companies to embrace digitalization to accelerate economic recovery and achieve a sustainable and inclusive post-pandemic future.

The Asian Development Bank’s data shows that MSMEs are the backbone of ASEAN economies as the sector accounts for 90% of all businesses in the region. Furthermore, these businesses contribute 67% of the total labor force from 2010 to 2019.

However, the rise of COVID-19 has severely impacted operations as consumers were forced to stay at home and greatly lessen their purchases. Due to the pandemic, MSMEs have been forced to shift to a more digital economy as the way goods and services are produced and consumed is rapidly changing.

Based on a technology utilization survey conducted by the DTI, Aldaba notes that MSMEs are lacking in financial capability and are unfamiliar with how to implement new technologies. In response to these issues, she explains how the platform’s upgrades will aid these businesses to shift to a “Fourth Industrial Revolution”.

“The ASEAN SME Academy 2.0 ensures that we continue to embrace a people-centered digital transformation through customized entrepreneurial training courses and platforms for business linkages and networking,” she said.

Source: Philstar