ASEAN MSMEs Play Crucial Role to Economic Growth, US Ambassador Says

VIVA – The Unites States (US) Ambassador to the Association of Southeast Asian Nations (ASEAN), Yohannes Abraham has stated that micro, small, and medium enterprises (MSMEs) are playing crucial role to the economic growth of the region. 

According to the Ambassador, supporting MSMEs in ASEAN is of critical importance because around 99 percent of businesses in ASEAN nations are small and medium-sized. Additionally, 85 percent of the combined workforce of ASEAN states also works for MSMEs.

"We think we have a great economic partnership already. And we want to look for ways to enhance it moving forward," he told in Jakarta on Friday, as quoted from Antara site.

He also added: "The US is committed to working with ASEAN to boost the region's economy one is through the US-ASEAN Business Council, a group of US Companies with invetments in ASEAN. They share best practices and conduct training for entrepreneurs in the region," 

The US is one of the main trading partners of the region. It is also the largest source of foreign direct investment (FDI) in the region, with a value reaching $40 billion in 2021. US goods and services trade with ASEAN stood at an estimated $441.7 billion in 2021.

Currently, there are more than 6,200 US companies operating within ASEAN.

"These are a couple of examples of our deep commitment to build on an already strong economic partnership and make it even stronger," Abraham remarked. 

According to ASEAN data, there are 70 million MSMEs in ASEAN. Regionally, MSMEs contribute 85 percent to employment, 44.8 percent to the gross domestic product, and 18 percent to national exports.