ASEAN Urged To Address Trade Barriers To Boost MSME Growth – SAMENTA

KUALA LUMPUR, May 22 (Bernama) -- ASEAN must take bold steps to address key trade challenges through enforceable agreements on reducing non-tariff barriers, expanding mutual recognition arrangements, and further operationalising the ASEAN Single Window for micro, small and medium enterprises (MSMEs).

In a statement today, Small Medium Enterprises Association (SAMENTA) national president William Ng said the relatively low levels of intra-ASEAN trade remains a missed opportunity, especially given Malaysia’s geographic proximity and cultural familiarity.

“For MSMEs, trade within ASEAN should be the most accessible first step towards internationalisation. However, they face a host of non-tariff barriers that make cross-border trade inefficient and costly.

“These include inconsistent product labelling and safety standards across member states, cumbersome and non-digitised customs clearance processes, and poorly coordinated sanitary and phytosanitary regulations in the agri-food sector,” he said.

Ng shared that disparate licensing and certification regimes in the services sector, such as logistics and retail, also pose significant challenges.

He further noted that global supply chains are undergoing realignment as companies seek to diversify away from single-country dependencies, exemplified by the “China Plus One” strategy.

At the same time, he observed that increasing tensions between major powers, including the United States-China trade conflict, and growing economic fragmentation have created both risks and opportunities for ASEAN.

“This is an ideal moment for ASEAN to present itself as a unified, neutral, and business-friendly bloc capable of absorbing global investments, supply chain shifts, and new manufacturing mandates.

“But to achieve this, we must enhance the capacity of our MSMEs to serve as reliable suppliers, partners, and innovators. If MSMEs are left behind in this transition, ASEAN risks entrenching economic dualism and widening inequality,” he said.

Ng stressed that in an increasingly fragmented world, ASEAN must remain vigilant against rising protectionism and ensure that reciprocal market access is upheld.

While large firms may have the resources to adapt or lobby, he noted that MSMEs are often the first casualties of sudden tariffs, quota restrictions, or import bans.

“ASEAN must be proactive in trade defence, ensuring that our MSMEs are not collateral damage in global economic disputes,” he added.

-- BERNAMA