ASEAN SME NEWS

 
Latest ASEAN news

US solar tariffs could drive Asia transition boom

[BANGKOK] Massive planned US duties on solar panels made in South-east Asia could be a chance for the region to ramp up its own long-stalled energy transition, experts say.

Earlier this month, Washington announced plans for hefty duties on solar panels made in Cambodia, Vietnam, Thailand and Malaysia.

The levies follow an investigation, launched before US President Donald Trump took office, into “unfair practices” in the countries, particularly by Chinese-headquartered firms.

If approved next month, they will pile upon tariffs already imposed by the Trump administration, including blanket 10per cent levies for most countries, and 145 per cent on Chinese-made goods.

For the US market, the consequences are likely to be severe. China makes eight out of every 10 solar panels globally, and controls 80 per cent of every stage of the manufacturing process.

The new tariffs “will practically make solar exports to US impossible commercially”, said Putra Adhiguna, managing director at the Energy Shift Institute think tank.

South-east Asia accounted for nearly 80 per cent of US solar panel imports in 2024.

And while investment in solar production has ramped up in the United States in recent years, the market still relies heavily on imported components.

For Chinese manufacturers, already dealing with a saturated domestic market, the raft of tariffs is potentially very bad news.

Many shifted operations to South-east Asia hoping to avoid punitive measures imposed by Washington and the European Union as they try to protect and nurture domestic solar industries.

The proposed new duties range from around 40 per cent for some Malaysian exports to an eye-watering 3,521 per cent for some Cambodia-based manufacturers.

Tariffs ‘accelerate’ transition

But there may be a silver lining for the region, explained Ben McCarron, managing director at Asia Research & Engagement.

“The tariffs and trade war are likely to accelerate the energy transition in South-east Asia,” he said.

China will “supercharge efforts” in regional markets and push for policy and implementation plans to “enable fast adoption of green energy across the region”, driven by its exporters.

Analysts have long warned that countries in the region are moving too slowly to transition from planet-warming fossil fuels such as coal.

“At the current pace, it (South-east Asia) risks missing out on the opportunities provided by the declining costs of wind and solar, now cheaper than fossil fuels,” said energy think tank Ember in a report last year.

For example, Malaysia relied on fossil fuels for over 80 per cent of its electricity generation last year.

It aims to generate 24 per cent from renewables by 2030, a target that has been criticised as out of step with global climate goals.

The tariff regime represents a double opportunity for the region, explained Muyi Yang, senior energy analyst at Ember.

So far, the local solar industry has been “largely opportunistic, focused on leveraging domestic resources or labour advantages for export gains”, he told AFP.

Cut off from the US market, it could instead focus on local energy transitions, speeding green energy uptake locally and driving a new market that “could serve as a natural hedge against external volatility”.

Still, replacing the US market will not be easy, given its size and the relatively nascent state of renewables in the region.

“Success hinges on turning this export-led momentum into a homegrown cleantech revolution,” said Yang.

“Clearance prices” may be attractive to some, but countries in the region and beyond may also be cautious about a flood of solar, said Adhiguna.

Major markets such as Indonesia and India already have measures in place intended to favour domestic solar production.

“Many will hesitate to import massively, prioritising trade balance and aims to create local green jobs,” he said. AFP

Source: The Business Times (Published 4/5/2025)

Link: US solar tariffs could drive Asia transition boom - The Business Times

AI to transform 3 key sectors in ASEAN: report

Artificial intelligence (AI) is providing transformative opportunities in the Association of Southeast Asian Nations (ASEAN), with the AI market projected to reach US$8.92 billion by 2025 and $30.30 billion by 2030 to present vast opportunities for the region’s digitally engaged population and offer benefits to key sectors, says a new report.

The policy brief released by the Economic Research Institute for ASEAN and East Asia (ERIA) said AI is estimated to contribute 10% to 18% of ASEAN’s gross domestic product (GDP) by 2030, translating to nearly $1 trillion.

Key sectors poised to benefit from AI adoption include manufacturing, where AI enhances efficiency through automation and predictive maintenance; retail and health care, where it enables personalized recommendations and diagnostics; and agriculture, where it optimizes crop yields and reduces food waste.

Beyond economic benefits, AI is transforming public services. With ASEAN’s urban population set to grow from 280 million to 370 million individuals by 2030, AI-driven smart cities can improve traffic and urban planning. AI can also facilitate personalized learning in education and enhance health care accessibility and diagnostics.

In addition, AI is crucial in energy management and sustainability. As ASEAN’s energy demand rises, AI-powered smart grids help balance supply and demand and integrate renewable energy sources. These innovations enhance energy efficiency and support sustainability goals.

However, the report found that AI integration also highlights challenges, including governance gaps, disparities in AI readiness among member states, data governance issues, and sustainability concerns.

To leverage AI opportunities, the ERIA report highlighted the importance of having explicit AI strategies, noting that currently only six AMS have them, while others rely on broader digital policies with limited AI focus.

“AMS with dedicated AI strategies score higher in the governance and ethics dimension of the Government AI Readiness Index (GAIRI) and are projected to experience greater economic benefits from AI,” said the paper. “While governance and ethics are not the only factors, they highlight how national AI policies enhance governance capacity and ensure that AI systems are deployed responsibly to support economic potential.”

Research also shows that while ASEAN’s potential for AI adoption is vast, the region also faces gaps in AI readiness, with Singapore leading with strong governmental support and infrastructure, while less-developed AMS face gaps in infrastructure, skills, and AI ecosystems.

Member states should respond to these challenges by including flexible, forward-looking AI and emerging technology frameworks grounded in ethical principles, ensuring alignment with global standards while fostering responsible AI use and adaptability, said the document.

Talent shortages and workforce mismatches are also further slowing AI adoption in many AMS, raising concerns about job displacement.

To address this, ASEAN should strengthen cooperation with dialogue partners to launch regional AI-focused capacity-building initiatives for public and private sector employees as well as partnerships with academia to integrate AI into curricula.

AI adoption also remains low among micro, small, and medium-sized enterprises (MSMEs) and startups. The primary barriers are high costs, technical complexities, and a lack of expertise. These constraints prevent these smaller businesses from fully leveraging AI’s potential.

AMS should establish AI adoption programs for MSMEs, including AI upskilling initiatives in collaboration with universities and industry. AMS should likewise provide financial incentives and support, such as tax benefits and grants, and regulatory sandboxes that allow MSMEs to experiment with AI applications in a controlled environment, advises the policy brief.

Finally, the report recommends offering fiscal incentives and strengthening public-private partnerships to advance green technologies, such as smart grids and green data centers, while building the technical capacity for responsible AI deployment.

PHILEXPORT News and Features
Published: June 20, 2025

ASEAN MSMEs need more tech support to adopt circular economy: study

Micro, small and medium enterprises (MSMEs) in the ASEAN region are encountering significant barriers in implementing circular economy (CE) practices mainly due to limited technical assistance and inadequate training, according to a new study.

The report, published by the ASEAN Secretariat, found that most capacity-building efforts in the region have focused on basic knowledge of CE principles, with insufficient emphasis on detailed technical assistance and practical implementation strategies.

“We need technical advice and technical know-how. Currently, the government offers capacity building in broad terms and general practices relating to CE concepts. But to grow, we need specific programs tailored to specific CE industries,” said one survey respondent.

Asked about the awareness or knowledge gaps that prevent transitioning to CE practices, MSMEs said they require specific and advanced knowledge in the areas of reducing waste and optimizing resources, addressing cost and investment gaps, developing circular business models, and managing sustainable supply chains.

There is clearly a need for more focused policies to support MSMEs adopting CE practices across the region, said the study entitled “Study on MSME Participation in the Circular Economy.”

It continued: “While MSMEs have benefited from government-led capacity-building efforts, particularly in raising awareness, they require more technical support, including mentorship, consultancy, training on transition plans, legal assistance and certification of products and services to accelerate their transition to CE models.”

Due to this lack of knowledge, MSMEs, the backbone of the region’s economy, are facing adjustment difficulties with the global shift from a traditional linear business to a more CE approach, the paper explained.

It further revealed that only 57% of ASEAN MSMEs are familiar with the CE concept as a powerful tool for sustainable development through practices such as environmental protection and responsible consumption and production.

“CE business models not only provide solutions to overcome environmental challenges but also opportunities for MSMEs, such as cutting operating costs through resource efficiency improvements, adopting low-emission energy alternatives and introducing new low-emission products and services, thereby enhancing their competitive edge in the market,” said the study.

Aside from lack of knowledge and awareness, surveyed MSMEs said other significant constraints to embracing sustainable principles include low consumer preference, high cost of transition, regulation barriers, and supply chain complexity.

On consumer behavior, it appeared that consumers still prefer to use disposable and single-use products, are price conscious, and lack awareness of the benefits of green and recycled products.

The research authors noted that in the Philippines, for example, the tingi culture provides accessibility and convenience, but it also generates more waste due to the packaging of small portions.

“Addressing this challenge requires strategic marketing and comprehensive consumer education campaigns to foster a more receptive market for CE-based products,” they said.

The cost of transitioning to CE practices also presents a significant challenge since greening business operations always come with high technology and upfront expenditure costs.

Financial support mechanisms, such as subsidies, tax reliefs and access to low-interest loans and soft financing, could facilitate the adoption of CE practices among MSMEs, said the report.

Meanwhile, regulation barriers are also seen to hinder MSMEs. These include policy roadblocks preventing them from gaining access to land, to virgin and secondary materials, and to financial options, such as rules requiring collateral for loans.

Supply chain complexity, with the emphasis on environmental values throughout the value chain, was likewise cited as a major hindrance to MSMEs’ business processes. The CE approach requires consideration of factors such as traceability and the use of local or recycled materials, which can significantly complicate operations.

“MSMEs aim to source materials and produce products as efficiently as possible, but the additional requirements to ensure sustainability can add complexity to their operations,” said the report.

The study stressed that the transition to CE has become unavoidable with the recognition of the devastating impact of climate change on development and economic growth. It called on the ASEAN community to commit to adopt more CE practices by transforming its production and consumption patterns to achieve a low-carbon economy.

The report said what will help the region to move toward a CE are government incentives that will encourage businesses to redesign their business models more circularly, and crucial infrastructure to improve material efficiency through reuse and recycling at waste facilities.

“Similarly, digitalisation, such as big data management and artificial intelligence, will play a role in helping optimise resource use and waste management and enable material traceability through digital platforms and apps,” the paper added.

PHILEXPORT News and Features
Published: June 20, 2025
Photo Source: Google

ASEAN targets becoming fourth largest economy by 2030

The Association of Southeast Asian Nations (ASEAN) has unveiled the “ASEAN Economic Community (AEC) Strategic Plan 2026–2030,” aiming to position the region as the world’s fourth largest economic bloc by 2030 and targeting to double ASEAN’s digital economy to an estimated US$2 trillion.

Formally introduced on June 12 in Malaysia, the AEC strategic plan is a "blueprint for regional economic transformation" that will drive sustainable growth and deeper integration, according to Malaysian Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz during the launching.

It serves as a five-year strategic roadmap to realize a seamless ASEAN single market driven by innovation, sustainability, and productivity, while reinforcing the region’s role in global value chains and supporting its aspiration to become the world’s fourth largest economy, he said.

Tengku Zafrul added that ASEAN can become the world’s fourth largest economy if the region can maintain a steady gross domestic product growth rate of 4% to 5%.

The digital economy stands out as a key focus of the strategic plan, with its doubling to $2 trillion projected to bring transformative benefits to businesses across the region.

The minister highlighted how this initiative will also empower small and medium enterprises.

The AEC Strategic Plan 2026–2030 succeeds the AEC Blueprint 2025 and will implement the economic aspects of the ASEAN Community Vision 2045, which aims to create a "resilient, innovative, dynamic, and people-centered ASEAN" by 2045.

The AEC Strategic Plan is organized into five-year cycles. In the first five-year cycle, the plan outlines six strategic goals, 44 objectives and 192 strategic measures. The six goals are as follows:

•    An action-oriented community: Realizing an integrated single market and production base with new sources of competitiveness
•    A sustainable community: Engendering and mainstreaming climate-responsive elements and policies in all dimension
•    An enterprising, bold, and innovative community: Enhancing sectoral cooperation, attuned to emerging trends and developments
•    An adaptable and pro-active community: Strengthening Global ASEAN agenda
•    A nimble and resilient community: Empowering the AEC and ASEAN peoples, withstanding shocks, stresses, crises, and volatility
•    An inclusive, participatory, and collaborative community: Leaving no one behind, charting people-centered ASEAN

"This plan represents a new chapter in ASEAN’s economic journey, structured to respond to evolving business needs and emerging challenges while ensuring policies remain dynamic and relevant," Tengku Zafrul further said.

“Through the AEC Strategic Plan, ASEAN aspires to significantly enhance intra-ASEAN trade by boosting the interconnectedness of the single market for goods, services, and investments,” he added.

“By further reducing persistent non-trade barriers, we can realize the fuller potential of intra-ASEAN trade. This will strengthen ASEAN’s competitiveness and build greater resilience against external shocks.”

The AEC is a regional economic bloc comprising the 10 ASEAN member states and was officially established on December 31, 2015. The AEC is one of the three key pillars of the ASEAN Vision 2045, besides the ASEAN Political-Security Community and the ASEAN Socio-Cultural Community.

PHILEXPORT News and Features
Published: June 13, 2025

Enabling access to finance, incentives keys to ASEAN MSMEs’ CE adoption

Collective initiatives, including an enabling access to finance and focusing on incentives, are crucial to accelerate micro, small and medium enterprises’ (MSMEs) adoption of the circular economy (CE) in Southeast Asia given opportunities related to their transitioning, according to a study.

The publication, Study on MSME Participation in the Circular Economy, said access to finance and suitable funding avenues could be essential for MSMEs seeking to improve their sustainability performance and/or introduce innovations within a CE. 

It underscored the need to offer MSMEs a variety of finance instruments, including grants, low-interest loans and tax incentives for businesses willing to exceed regulatory requirements and invest in more sustainable technologies. 

“Sustainable finance instruments that integrate economic growth, environmental protection and social inclusion dimensions (impact investment fund, green microfinance, sustainability-linked loans) can provide MSMEs with additional capital access,” it added.

In designing interventions and instruments for MSMEs transitioning to the CE, the study  proposed to ASEAN policymakers to focus on incentives, raising awareness on the impact of the CE on ASEAN trade, capacity building, collaboration through matchmaking and regulatory sandboxes.

It said fiscal incentives, such as subsidies and tax holidays, demonstrate government support for CE practices and encourage MSMEs to invest in CE strategies. 

For non-fiscal incentives, governments can create market demand for circular products from MSMEs through the facilitation of green public procurement, it added. 

Citing an earlier report published by the Organization for Economic Co-operation and Development, the study said encouraging larger companies to apply pressure on their supply chains can also support the development of domestic demand for circular products.

“While MSMEs have benefited from government-led capacity-building efforts, particularly in raising awareness, they require more technical support, including mentorship, consultancy, training on transition plans, legal assistance and certification of products and services to accelerate their transition to CE models,” it said.

The survey findings documented that only 57 percent of ASEAN MSMEs were familiar with CE concepts, and 43 percent had a limited understanding of the CE. 

The study also shows that geographical constraints cluster knowledge gaps. The demand for knowledge in circular business models is exceptionally high in the Philippines, Vietnam, Singapore, and Lao PDR.

The sectors most knowledgeable about the CE include food and beverages, craft and creative industry, consultation services, agriculture, trade and retail, and fashion and textiles. 

Common CE practices among ASEAN MSMEs are digitalization (62 percent), material optimization (59 percent) and energy efficiency (59 percent).

“Despite their familiarity with the term ‘circular economy’, MSMEs still lack an understanding of the benefits of CE business practices. MSMES must recognise that adopting these practices can yield significant advantages beyond environmental impact, including internal benefits such as cost savings, enhanced resource and material security and customer retention. Being aware of these benefits can simplify the transition process for MSMEs,” it said, citing an earlier paper.

To encourage this shift, the study underscored the importance of sharing the experiences and success stories of fellow businesses that can motivate other MSMEs to start their journey in the CE. 

“On the other hand, it is crucial to communicate CE regulations and policy frameworks to MSMEs regularly,” it said. “Best practices should be shared with specific sectors to ensure relevance and immediate applicability.” 

The study also highlighted substantial opportunities for global market demand for green and circular products, which are increasingly in demand. 

“This trend presents a chance for MSMEs that utilize eco-friendly and traceable materials to expand their market reach, especially MSMEs that are supplying to the export market. Governments have the opportunity to support MSMEs throughout the value chain to meet international standards,” it added. 

It also cited support from platforms such as ASEAN Access and the ASEAN Circular Economy Stakeholder Platform (ACESP).

Meanwhile, the study was prepared with the support of the SME Promotion in ASEAN II project, which is implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and funded by the German Federal Ministry for Economic Cooperation and Development.

PHILEXPORT News and Features
Published: June 13, 2025
Photo Source: Canva

China, ASEAN complete negotiations on upgraded free trade deal

China and the Association of Southeast Asian Nations (ASEAN) have completed negotiations to further refine their free trade area to include the digital and green economy and other new industries, China's commerce ministry said on Wednesday (May 21).

ASEAN, made up of 10 Southeast Asian countries, is China's largest trading partner, with the value of total trade reaching US$234 billion in the first quarter of 2025, according to Chinese customs data.

The so-called 3.0 version of the free trade area will "inject greater certainty into regional and global trade and play a leading and exemplary role for countries to adhere to openness, inclusiveness and win-win cooperation," the statement said.

Negotiations began in November 2022, and the agreement covers areas including the digital economy, green economy, and supply chain connectivity, the statement said.

The pact will "promote the deep integration of the production and supply chains of both sides", it added.

China has intensified engagement with ASEAN since US President Donald Trump announced hefty import tariffs on countries around the world and targeted China with even heavier levies. Some of the levies have since been delayed while China and the US agreed this month to pause some of their tariffs.

President Xi Jinping took a three-nation tour of Southeast Asia in April to consolidate ties with some of China's closest neighbours, calling on Asian nations to unite against what he called geopolitical confrontation, unilateralism and protectionism.

The formal signing of the trade agreement is expected to take place before the end of the year. The ASEAN-China Free Trade Area was first signed in 2002 and came into force on Jan 1, 2010.

 

Source: Channel News Asia (published 21/5/2025)

Link: China, ASEAN complete negotiations on upgraded free trade deal

Brunei’s economy records 4.2pc growth

Brunei Darussalam’s economy recorded a growth of 4.2 per cent in 2024, with a decline in domestic inflation by 0.4 per cent, according to the Annual Report and Financial Stability Report for 2024 released by Brunei Darussalam Central Bank (BDCB).

The decline was supported by government subsidies and price controls on certain consumer items, as well as the country’s monetary policy, based on a currency board arrangement and underpinned by the Currency Interchangeability Agreement with Singapore.

The annual report highlights the central bank’s key achievements in delivering its mandates and policy developments in 2024 as well as its strategic priorities for 2025. Among the key highlights covered are as follows:

The central bank continued to support a strong and stable financial sector that protects consumers and aligns with international standards by introducing several key policies in 2024. These focused on enhancing liquidity risk management for banks, strengthening customer due diligence and transparency and improving the resilience and cybersecurity of critical systems of financial institutions.

Extensive onsite and offsite inspections on financial institutions were conducted throughout 2024 to assess their governance and internal controls, risk management, financial resilience, adherence to anti-money laundering and combating the financing of terrorism (AML/CFT) regulations, Syariah compliance and technology risk controls.

In its efforts to nurture the development of Brunei Darussalam’s financial sector, the central bank launched the inaugural Brunei Darussalam Islamic Finance Symposium, which showcased Islamic finance as a driver of economic growth. The central bank also launched the Mekar FinTech Innovation Centre to support the growing FinTech ecosystem in Brunei Darussalam.

Source: Borneo Bulletin

Read the full article here

Guide on ESG disclosure available to SMEs

Small and medium enterprises (SMEs) are called to utilize a reference guide to help them decide what Environmental, Social and Governance (ESG) disclosures to track and report and ensure alignment with global standards, empowering them to grow their sustainability value and enhance supply chain resilience. 

The ASEAN Simplified ESG Disclosure Guide for SMEs in Supply Chains (ASEDG) Version 1, https://www.theacmf.org/images/downloads/pdf/ASEDG%20100425.pdf, said the 38 priority disclosures covering the ESG pillars are divided into Basic, Intermediate and Advanced categories by each topic to cater for different levels of sustainability maturity in companies.

“There is no mandatory timeline for the disclosures and adoption is voluntary. Disclosures may be updated if stakeholder needs change,” it said. 

The guide said the disclosures are applicable across all industries, with different levels of importance and priority. 

“Every company is encouraged to determine the materiality of the topics and associated disclosures relevant to the company,” it added.

Under the Environmental pillar, topics include emissions, energy, water, waste and materials. 

The guide said the reporting requirements for Greenhouse gas (GHG) emissions are based on the requirements of the ‘GHG Protocol Corporate Accounting and Reporting Standard’ and the ‘GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard’. 

These two standards are part of the GHG Protocol developed by the World Resources Institute (WRI) and the World Business Council on Sustainable Development (WBCSD).  

The disclosures in the topic of energy can provide information about a company’s impacts related to energy, and how it manages them.

Those in the topic of water only cover water withdrawal since discharge may not be relevant for most companies. It is, however, encouraged for companies to go beyond these disclosures if the company withdraws significant amounts of water directly from natural sources or discharges significant amounts of water/ effluents.

On the topic of waste, the disclosures are designed to help a company better understand and communicate its waste-related impacts, and how it manages these impacts. These require information on how the company prevents waste generation and how it manages waste that cannot be prevented, in its own activities and upstream and downstream in its value chain.

The disclosures in the topic of materials can provide information about a firm’s impacts related to materials, and how it manages these impacts.

“Companies shall take into consideration regulatory guidance such as those prescribed by laws or regulations. Companies may also consider, where relevant, the adoption of and alignment with local and international guidelines,” the guide said.

ESG’s Social pillar focuses on human rights and labor standards; employee management; diversity, equity and inclusion; occupational health and safety; and community engagement.

“The presence and effective implementation of policies for eliminating all forms of forced or compulsory labour are a basic expectation of responsible business conduct. Companies with multinational operations are required by law in some countries to provide information on their efforts to eradicate forced labour in their supply chains,” it added.

The disclosures for the topic of employee management address the scale of a company’s investment in training and the degree to which the investment is made across the entire employee base. 

“It also reflects the company’s commitment to providing fair compensation that meets or exceeds local minimum wage requirements, with regular reviews to ensure ongoing compliance with the prevailing minimum wage laws or regulations,” the guide said. 

On the other hand, the Governance pillar covers governance structure, policy commitments, risk management and reporting, anti-corruption and customer privacy.

The guide said good and effective corporate governance has wide ranging influence and impact on the corporate and real economic sector, including listed and non-listed companies, which would enhance decision-making, thus leading to better performance in commercial terms.

“Clear policy commitments, supplemented by relevant internal processes and guidance for stakeholders, demonstrate the determination of the companies in implementing responsible business conduct throughout the organisation and supply chain, thus ensuring that companies are not engaged in unethical behaviour or illegal activities,” it added.

PHILEXPORT News and Features
Published: May 30, 2025

Reporting tool simplifies ESG disclosure for ASEAN SMEs

Small and medium enterprises (SMEs) in the Philippines and other ASEAN countries now have a handy tool to make Environmental, Social, and Governance (ESG) reporting easier and boost their role in global sustainable supply chains.

The ASEAN Capital Markets Forum (ACMF) has published the “ASEAN Simplified ESG Disclosure Guide (ASEDG) for SMEs in Supply Chains,” an ESG reporting guide for SMEs in the region that operate within global and local supply chains.

Briefly, the guide simplifies ESG reporting for ASEAN businesses, which often struggle with limited resources and find global frameworks too complex. This tool is important as transparency and accountability in ESG practices become a critical requirement for SMEs to continue participating in the global business world. 

“Reporting can be complex and resource-intensive, particularly for smaller businesses. This guide has been designed to simplify ESG disclosures and ensure alignment with global standards,” said ACMF, a grouping of capital market regulators from the 10 ASEAN jurisdictions, in a foreword to the guide. 

“It seeks to empower SMEs to assess and grow their sustainability value, enhance supply chain resilience, and attract investment.”

Today ESG adoption is not just about compliance but has evolved into a strategic necessity. “Companies that proactively embed sustainability into their operations will gain a competitive edge in national, regional and international markets,” ACMF said.

They will also be able to future-proof their businesses, mitigate risks, and build long-term value.

This simplified reference framework streamlines and consolidates various global ESG frameworks as well as the local guidelines and frameworks of ASEAN member states into a set of 38 priority disclosures recommended for SMEs to address. 

Released in April 2025, the ASEDG helps businesses begin their ESG reporting in a structured and accessible way, and is categorized into basic, intermediate and advanced to cater to the different levels of sustainability maturity of each SME. 

The disclosures are applicable across all industries with different levels of priority, and SMEs are encouraged to determine the significance and relevance of these disclosures to their companies.

ASEDG focuses on three core areas: environmental, social and governance disclosures. These are further divided into 15 practical topics that capture a company’s sustainability-related risks, opportunities, and performance. 

The environmental disclosure section guides SMEs in tracking their environmental impact. Topics under it center on emissions, energy, water, waste, and materials.

By reporting on these, businesses can reduce their environmental footprint and align with sustainability goals, according to a report from Fuller Academy, a Kuala Lumpur-based sustainability course provider.

The social disclosure pillar addresses how SMEs interact with their employees, customers and suppliers, and the communities they operate in. It covers human rights and labor practices; employee management; diversity, equity and inclusion; occupational health and safety; and community engagement.

Reporting on social factors builds trust with stakeholders and enhances a company's reputation. It also ensures that SMEs are contributing to fair, inclusive, and safe working environments throughout the supply chain.

Governance focuses on how SMEs are managed and how decisions are made to ensure transparency, accountability, and ethical conduct. The topics cover governance structure, policy commitments, risk management and reporting, anti-corruption, and customer privacy.

Strong governance practices protect a company’s reputation while also ensuring long-term business success by showing investors, customers, and partners that the company is committed to responsible and sustainable business practices.

The ASEDG may be accessed at www.theacmf.org/images/downloads/pdf/ASEDG%20100425.pdf.

 
PHILEXPORT News and Features
Published: May 30, 2025

Thailand and Indonesia Boost Trade as Strategic Partners.

On May 19, 2025, Thailand and Indonesia elevated their bilateral relationship to a "strategic partnership" during the 75th anniversary of diplomatic ties. Indonesian President Prabowo Subianto made his first state visit to Thailand in two decades, meeting with Thai Prime Minister Paetongtarn Shinawatra.

Key points:
  • Strategic Partnership: The two nations agreed to enhance cooperation in trade, investment, tourism, food security, and health security.
  • Defense and Security Collaboration: Plans include strengthening maritime security, counterterrorism efforts, cybersecurity cooperation, joint military exercises, and defense industry partnerships.
  • Combating Transnational Crimes: Thai and Indonesian police will collaborate to combat online scams, human trafficking, and drug trafficking, especially following the rescue of Indonesian citizens from scam operations in Myanmar.
  • Health Cooperation: A memorandum of understanding was signed to cooperate on communicable disease prevention, medical tourism, and pharmaceutical security.
  • Myanmar Crisis: Both leaders emphasized the importance of inclusive national dialogue and ASEAN unity to restore peace and stability in Myanmar.
This strategic partnership signifies a commitment to addressing regional challenges and strengthening bilateral relations across multiple sectors.

Read more: Click!

Investment Promotion Applications Surge in Q1 2025

In the first quarter of 2025 (January–March), Thailand's Board of Investment (BOI) reported a significant increase in investment promotion applications, totaling over 431 billion baht, a 97% rise compared to the same period last year. 

Key Highlights:
  • Digital Sector Growth: Applications in the digital sector soared over five times to 94.7 billion baht from 17.4 billion baht a year earlier, driven by five data center projects totaling 94.2 billion baht. 
  • Foreign Investment: Out of 822 total project applications, 618 were from foreign investors. Hong Kong led with investments exceeding 135 billion baht, accounting for 50% of all foreign direct investment (FDI), including 72.7 billion baht in the digital sector. 
  • Infrastructure Projects: The infrastructure sector attracted the highest investment value, notably the 109.2-billion-baht Orange Line mass transit project by Bangkok Expressway and Metro. 
These figures indicate strong investor confidence in Thailand's digital and infrastructure sectors.

Read more: Click! 

Cambodia’s e-commerce market set to hit $1.78 billion in 2025

Cambodia’s e-commerce sector is poised for strong growth, with the market projected to reach $1.78 billion by 2025, up from $1.51 billion in 2024, according to iTrade Bulletin by the Ministry of Commerce (MoC).

The data represents a compound annual growth rate of 17.88 percent, highlighting the rapid digital adoption among consumers and businesses.

The country holds a 1.3 percent share of the ASEAN e-commerce market, which is expected to grow from $116.36 billion in 2024 to $137.24 billion by 2025.

E-commerce has become a significant contributor to Cambodia’s economy, accounting for 6.68 percent of GDP in 2024. Platforms such as Facebook, TikTok, and Telegram dominate online sales, underscoring the role of social commerce in driving digital transactions.

QR codes have emerged as the most popular payment method, representing 47.15 percent of transactions, followed by cash at 26.5 percent, mobile money transfers at 13.3 percent, and other methods at 13.05 percent. This trend reflects growing public confidence in digital payments, supported by mobile banking integration.

ABA Bank leads in banking integration with a 46.89 percent share, followed by ACLEDA Bank at 30.90 percent and Wing Bank at 17.02 percent, emphasizing the importance of financial institutions in the digital economy.

For full article, please read here