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Challenge and Opportunities Facing Asia’s SMEs --- A report from the Economist Intelligence Unit
Tapping into the booming China market and taking advantage of Asia’s growing number of Free Trade Agreements are the keys to future success for regional small and medium enterprises (SMEs), a study commissioned by FedEx has concluded.
The study by the respected Economist Intelligence Unit found that while cost control remains critical for Asian SMEs as they emerge from the global financial crisis, their position in Asia gives them important strategic advantages.
SMEs need to reduce reliance on consumers in developed Western market and turn attention towards domestic demand and increasing consumer demand in China, where retail demand grew by 15.1 per cent year-on-year in the first three quarters of 2009, researchers say.
The report also says that SMEs should take advantage of the proliferation of Free Trade Agreements signed in recent years to promote trade between Asian countries which numbered 54 in mid-2009.
The most recent of the agreements, signed between China and the Association of South-East Asian Nations (ASEAN) on January 1, 2010, allows for 90 per cent of goods traded between China and ASEAN’s six richest member states to enjoy zero tariffs.
“We commissioned this research in recognition of the importance of SMEs to the region’s economy and also to the future development of the express market,” said David L. Cunningham Jr., president of FedEx Asia Pacific.
“Today’s international exporters are not major multinational companies but small businesses. FedEx helps small business owners go global from day one through greater access and its tailored portfolio designed to meet the unique needs of SMEs.”
Full details of the Economic Intelligence Unit report are available here.