Kuala Lumpur: 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 emphasized the need for ASEAN to improve its trade landscape, particularly for MSMEs.

According to BERNAMA News Agency, Ng pointed out that the relatively low levels of intra-ASEAN trade is a missed opportunity, especially given Malaysia’s geographic proximity and cultural familiarity. He mentioned that for MSMEs, trade within ASEAN should be the most accessible step towards internationalisation. However, they face numerous non-tariff barriers that make cross-border trade inefficient and costly. These barriers include inconsistent product labelling and safety standards across member states, cumbersome customs clearance processes, and poorly coordinated sanitary and phytosanitary regulations in the agri-food sector.

Ng highlighted that disparate licensing and certification regimes in sectors like logistics and retail also pose significant challenges. He noted that global supply chains are undergoing realignment as companies diversify away from single-country dependencies, exemplified by the ‘China Plus One’ strategy. At the same time, increasing tensions between major powers, including the United States-China trade conflict, present both risks and opportunities for ASEAN. He believes this is an ideal moment for ASEAN to present itself as a unified, neutral, and business-friendly bloc capable of absorbing global investments and supply chain shifts.

Ng stressed the importance of enhancing the capacity of MSMEs to serve as reliable suppliers, partners, and innovators. He warned that if MSMEs are left behind in this transition, ASEAN risks entrenching economic dualism and widening inequality. He also urged ASEAN to remain vigilant against rising protectionism and ensure that reciprocal market access is upheld. While large firms may have resources to adapt, Ng noted that MSMEs are often the first casualties of sudden tariffs or import bans. He called for proactive trade defence to protect MSMEs from becoming collateral damage in global economic disputes.