Development of a Diagnostic Tool to Assess Micro, Small and Medium Enterprises’ (MSMEs) Digital Readiness
| Proponent | : | ASEAN Secretariat (ASEC) |
|---|---|---|
| Implementing Agency | : | AEM-METI Economic and Industrial Cooperation Committee (AMEICC) Secretariat |
Background
Digital economy is a key factor driving the growth of ASEAN’s economy. The region’s digital economy is projected to expand 6.4 times from USD31 billion in 2015 to USD197 billion by 2025. With numerous “mobile-first” markets in the region, and having already embraced the 4th Industrial Revolution, the digital economy became a key factor driving the growth of the region’s economy. However, according to the Economic Research Institute for ASEAN and East Asia (ERIA), many MSMEs are not able to use digital tools to their fullest.1
Enhancement of MSMEs’ adoption of digital skills and technology as well as their participation in the digital economy have been recognised as critical issues by ASEAN. To respond to these needs, ASEAN Member States have expressed their commitment through the adoption of the Action Agenda on Digitalisation of ASEAN MSMEs through Capacity Building Initiatives. Building on this commitment, the Government of Japan through the Japan-ASEAN Integration Fund (JAIF) supports the implementation of a project titled Development of a Diagnostic Tool to Assess MSMEs’ Digital Readiness.
What is the project aiming for?
The project aims not only to enhance MSMEs’ capacity to adopt digital skills but also to improve the understanding of governments and MSME enablers about the digital adoption landscape among MSMEs in order to create targeted and evidence-based policies and interventions. It will achieve the followings:
- Development of a self-diagnostic tool accessible to MSMEs in ASEAN Member States; and
- Establishment of a user-driven data collection mechanism.
Digital transformation has been on ASEAN’s radar for more than two decades with the signing of the e-ASEAN Framework Agreement by the Leaders in November 2000 … a coherent digital transformation strategy for ASEAN is not only crucial for the region’s recovery but also for its long-term competitiveness.
The 20th ASEAN Economic Community (AEC) Council Meeting
18 October 2021
Virtual Meeting
The project aligns with the ASEAN Strategic Action Plan for SME Development 2016-2025, Strategic Goal A. Promotion of Productivity, Technology and Innovation. Further, this project supports economic cooperation in the areas of MSMEs, digital economy, and the 4th Industrial Revolution as outlined in the ASEAN Outlook on the Indo-Pacific (AOIP). The project also aims to close digital divides in ASEAN and thus, it supports the implementation of the Master Plan on ASEAN Connectivity (MPAC) 2025, Initiative 4: Enhance the MSME Technology Platform.
The project is currently underway and scheduled to be completed in October 2024.
As of 30 November 2022
1 Study on MSMEs Participation in the Digital Economy in ASEAN: Nurturing ASEAN MSMEs to Embrace Digital Adoption, https://asean.org/wp-content/uploads/2019/10/ASEAN-MSME-Full-Report-Final.pdf (accessed 14 November 2022)
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