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SINGAPORE : Business associations said small and medium-sized enterprises (SMEs) are the backbone of the 21 APEC economies, accounting for about 70 per cent of the region's gross domestic product.
They hope to push the SME agenda forward at the APEC Business Advisory Council meeting in Singapore next week by lobbying for greater market access and lower trade barriers.
On average, about 30 per cent of goods and services from the SMEs are exported, and the Singapore Business Federation (SBF) wants to increase those numbers.
Since February, SBF's CEO Teng Theng Dar, who is also chairing the APEC Business Advisory Council, has been studying the market conditions and challenges facing SMEs. And he will be presenting the recommendations to APEC leaders next week.
One way is through greater market access.
"What we want to achieve is how we are able to create an ecosystem within APEC that is faster, easier and cheaper. With the logistics system that's available in the market place today, there is no way why SMEs cannot connect to each other," said Teng.
Meanwhile, the Singapore Indian Chamber of Commerce & Industry said economies need to be less reliant on America. Currently, the US accounts for 40 per cent of global consumption.
Predeep Menon, CEO of Singapore Indian Chamber of Commerce & Industry said: "What we need to see is parallel markets develop(ing) and that would require economic dynamos like China, South Korea, and even India, though India is outside of APEC.
"If these markets can boost their domestic consumption and therefore provide lucrative markets to the rest of the players in the region, then post-recession, the economic order would give us choices."
In terms of trade tariffs, Menon said APEC has come a long way. Tariffs now stand at an average of about 5 per cent compared to nearly 20 per cent before APEC was formed. But he said more can be done to lower them.
The Singapore Malay Chamber of Commerce & Industry hopes the meeting will help open doors to emerging markets like Vietnam and Indonesia. Overall, observers said some structural reform may be needed to make it easier to do business.
"Customs procedures can be made easier and clearer, so that exporters can export their goods in a simpler way. Anti-corruption of course is another area, and also, perhaps the issue of protection of intellectual properties when we do business overseas," said Abdul Rohim Sarip, president of the Singapore Malay Chamber of Commerce & Industry.
Another issue that will be discussed is how and when the different economies withdraw measures put in place to stimulate the economy.
Business associations said if that is not done well, it could create an uneven playing field for companies.
Still, business leaders said the diversity of APEC's 21 economies means it may take more than one meeting to iron out the issues. But commitment on the part of leaders is a step forward in the right direction. - CNA /ls
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