CLOSING REMARKS

Establishment of the ASEAN-China Free Trade

Area in 2010

Trade in goods liberalization

for ASEAN-6 in 2010 and 2015

Liberalization of trade in services

Establishment of the ASEAN-China Centre for Trade, Investment and

Tourism Promotion

Important Milestones

Special Dialogue

IMPACT OF CAFTA• Promotes trade between China & ASEAN -

combined trade value amounts to 1/10 of world trade

• Provides chances to develop practical economic situation

• Improves people’s living standards (especially the middle class) and technological progress for ASEAN region.

Session 1

Ministerial Forum: Maximizing Trade under CAFTA:

How ASEAN and CHINA Can Benefit from the FTA

Session 1

CAFTA – A Successful Saga

Session 1

CAFTA needs regulations to protect ASEAN SMEs – i.e. 99% of businesses in Indonesia are SMEs

Focus

• accessibility of finance• knowledge and training programme/centers, education

support, etc.• establish focal points (eg. ASEAN hubs) • local Strategic partnership

on Micro aspects in developing CAFTA

Session 1

Maximizing Trade under

CAFTA: How ASEAN

and China can Benefit from

FTA

Thailand Export Strategies to China

• Promote and support high potential service trade eg. restaurants, education, health & beauty, spa, construction, architect, hospitality service, security, entertainment, etc.

• Encourage & support Thai entrepreneurs’ business establishment in China

• Expand business networking for each product cluster

• Establish new business channels (eg. E-Commerce)

Session 1

KADIN INDONESIA

The potential of CAFTA went largely unnoticed

by the SMEs that constitute the biggest

part of our economies

Why? Because the CAFTA

vision is still a vision of Governments

Session 2

Doing Business with China – Understanding Standards, Rules and

Regulations

Session 2Doing Business with China

Industrial Standards In China

Fundamentals for Trade with China

• Proliferation in the usage of non-tariff barriers

• China’s industrial policies – consolidation of industries

• Existence of protected sectors:- trade barriers- exemptions from China’s competition law

• Differential treatment accorded to foreign SMEs

• The domination of collectivism

Adopting specific strategies• localisation of

business management

• Positioning of brand• Capitalisation of

market potential

Developing the right attitude• Perseverance• Adapt and adopt• Abiding laws

Session 2

Tariffs: no longer the main consideration of business community. Concerns mainly in

area of non-tariff barriers - NTB do not pose a problem, if consistent with international obligations

Need to ensure NTB not abused

Session 3

Turning Crisis into Opportunity: Strategies for Entrepreneurs in the

Current Economic Climate

Session 3

Increase in middle-income population

supports consumption – ASEAN’s middle class population could reach

300million by 2014, which should underpin consumption growth.

This is much larger than China’s or India’s!!

Don’t be complacent

Reassess business

plan

Take advantage of Asia’s recovery

Go regional

Build relationships

Be flexible

NEXT STEP….

Session 3

ASEAN-China FTACOLLABORATIVE

PARTNERSHIP

APTEC - A HIGH IMPACT PLATFORM TO DRIVE SME & JOBS

Dato’ Haji Mohamad Iqbal Rawther

Session 3What was yesterday’s market is not available today – the niche for you may no longer be a niche

SMEs need to be the frontier of technology ,

meaning the real innovation. Not imitation!!

Session 4

E-Commerce Crossing the Borders at the Click of a Mouse

Session 4

SME Business Challenges Today•Rising competition •Fast-changing business dynamics•Legacy in business processes•Technology bottlenecks – hardware & software•Talent issues

E-PROCUREMENT VIA WEB-BASED TECHNOLOGY

Session 4

E-Commerce:Crossing the Bordersat the Click of a Mouse

Keys to Success• Adequate e-

commerce infrastructure in place

• Policy and regulatory framework

• B2B before B2C in certain countries

• International and local collaborators

http://b2b.asean-cn.org

Session 4

Step to Next Generation B2B - Commerce

Salary earners – Can they

survive ? It’s a jungle out

there!

SMEs – They know how to survive in the

real world

Session 5

Logistics and the Value-Chain System: Opportunities for SMEs

Criteria for SMEs in the Logistics Industry

Opportunity for SMEs>>>Logistics companies i.e. MASKargo outsource services to third party.

Session 5

Timeliness

Safety of goods

Quality of goods

delivered

Cost 4 criteria

Session 5OPPORTUNITIES OF

OUTSOURCING IN AIR FREIGHT LOGISTICS

WAREHOUSE • Build-Up• Breakdown

RAMP AIRSIDE• Towing

MAINTENANCE & SUPPLY OF MOVABLE EQUIPMENT• Folk lift, tow

trucks, of movable equipment

OPERATION• Document

Sorting

Session 6

Trade Finance: Trading Beyond Borders

Financing SMEs• Banks actively financing SMEs:

- Covering 40% of total portfolio- Loan approvals rose by 23%- Total loan increased to RM 150 million

• Initiative to simplify loan application process

• Involvement of private & Government sectors

KASIKORNBANK PLC.

Session 7

The Way Forward: Maximizing Growth for SMEs in the China-ASEAN

Economies

Promote greater

awareness on CAFTA

Leverage on e-commerce platform

• SMEs in ASEAN should be strengthened to take full advantage of the growing Chinese markets.

• SMEs in ASEAN should focus on developing their own Research and Development capabilities to complement the growing demand in China.

• Take advantage of financing

i.e., ADB’s ASEAN China Investment Fund II, which seeks to raise $250 million in total capital, and plans to invest in companies that will benefit from increasing trade between ASEAN bloc and China.

• Create strategic alliancesSMEs are in a better position to capitalize

on FTAs to enhance profit, advantage and growth

SMEs leverage on their combined knowledge, capabilities, and other assets

• Study market structures and demand in China

Customers in China are fragmented due to the country's vast population

• Identify target customers in China Tailor-fit products according to specific

profile of target market in China

• Products entering Chinese market also need to have local language labeling

Concerted efforts• SMEs• Governments• Academic and Research Institutions• International and Regional Institutions • Big business

CREATION OF SOCIAL ENTERPRISE AS A

VEHICLE FOR SOCIO-ECONOMIC

TRANSFORMATION OF COMMUNITY

Governments can promote the growth of its SME business throughseveral levers:

Legislative

Fiscal Spending

Tax cut andexemption

policies

Financial markets

SME BUSINESS CENTRE

THANK YOU

Business Advisory Services (BAS)

VIRTUAL SMEINFORMATION CENTRE

www.smecorp.gov.my

INFOLINE1-300-88-1801

Send to 15888

SMS for Grants Status & Other Information

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