7 minute read 29 Jan 2020
ASEAN SMEs digital transformational survey report

ASEAN SMEs: are you transforming for the future

Authors

Jan Bellens

EY Global Banking & Capital Markets Sector Leader

Passionate leader on innovation in financial services, especially in emerging markets. Global citizen. Keen traveler.

Nam Soon Liew

EY Asean Managing Partner, Ernst & Young Solutions LLP

Business leader passionate about driving economic opportunity, diversity and inclusion, and digital technology transformation for value creation.

7 minute read 29 Jan 2020

Understand how ASEAN SMEs are positioning themselves to profit from the region’s growth story and adapting in the evolving environment.

Given the constant macro-economic and structural shifts, greater competition, rapid technological advances and increasingly exacting consumer requirements, today’s ASEAN SMEs are operating in interesting times. They must be more agile and adaptable, and actively leverage support from their governments and financial services sectors to successfully navigate the evolving business environment.

Report Highlights

To help stakeholders understand how ASEAN SMEs are positioning themselves to participate in the region’s growth story, we surveyed more than 1,200 SMEs across the six largest ASEAN countries: Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam as part of our inaugural ASEAN SME Transformation Survey.

The ASEAN growth story

Four drivers are paving the way for the regional market’s promised integrated production platform and an enlarged consumption base, with SMEs well positioned to benefit from the resulting economic, trade, financial and social cohesion.

ASEAN SME Transformation findings

To understand how ASEAN SMEs are positioning themselves to profit from the region’s growth story and adapt alongside the evolving environment, we interviewed over 1,200 SMEs across a number of sectors in ASEAN. Some of the key takeaways include:

Strategy and operations

  • The top countries where SMEs are most likely to project growth improvements in FY18 are Vietnam (68%) and Indonesia (67%).

Banking engagement

  • Majority of SMES (47%) are happy with their primary service providers while 37% would like to increase the level of engagement. 16% are open to explore other providers, be it other banks or non-banks.

Sources of funding

  • 68% of our respondents, and even including more established enterprises, are open to non-traditional lenders. The core appeal is a much faster loan approval process.

Government Support

  • 80% need help in funding adoption of digital technologies (to automate, reduce cost and raise productivity, reduce manpower requirements or enhance product and services offered).

Leading digital innovation for SMEs

  • 75% of respondents seeking to innovate to seize business opportunities and grow their top line, with seven-in-10 looking to differentiate via customer service.

 

 

Summary

To help stakeholders understand how ASEAN SMEs are positioning themselves to participate in the region’s growth story, we surveyed more than 1,200 SMEs across the six largest ASEAN countries: Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam as part of our inaugural ASEAN SME Transformation Survey.

About this article

Authors

Jan Bellens

EY Global Banking & Capital Markets Sector Leader

Passionate leader on innovation in financial services, especially in emerging markets. Global citizen. Keen traveler.

Nam Soon Liew

EY Asean Managing Partner, Ernst & Young Solutions LLP

Business leader passionate about driving economic opportunity, diversity and inclusion, and digital technology transformation for value creation.