At the sideline of the 56^th ASEAN Ministerial Meeting in September 2024 in Vientiane, Lao PDR, ASEAN has released the ASEAN SME Policy Index 2024, a comprehensive report assessing the policy and regulatory frameworks for micro, small, and medium enterprises (MSMEs) across its member states. The launch was a collaborative effort by the ASEAN Coordinating Committee on MSMEs (ACCMSME), the Economic Research Institute for ASEAN and East Asia (ERIA), and the Organisation for Economic Co-operation and Development (OECD).

The ASEAN Economic Community (AEC) Blueprint 2025 underscores the critical role of small and medium-sized enterprises (SMEs) as the backbone of ASEAN economies. Over the past decade, ASEAN Member States (AMS) have rolled out a range of SME support policies and instruments. However, recent challenges – like supply chain disruptions from the COVID-19 pandemic, surging inflation, and rising interest rates – have hit SMEs hard. These turbulent times have put SME support systems to the test, challenging their ability to truly bolster local businesses and to foster resilience.

The report, titled SME Policy Index ASEAN 2024: Enabling Sustainable Growth and Digitalisation, reveals significant progress in SME development, even as the region faces mounting challenges such as the COVID-19 pandemic, geopolitical tensions, and supply chain disruptions. This report examines the current landscape of SME policies across the ASEAN region, providing an updated assessment of progress across eight thematic areas (i.e. dimensions) as well as a description of AMS specific challenges and recommendations for further reform. It also integrates the goals of the ASEAN Strategic Action Plan for SME Development 2016–2025 (SAP SMED 2025). Compared to the previous 2018 assessment, the 2024 edition introduces new indicators emphasizing digital transformation, environmental sustainability, and inclusive business models.

Key Highlights

The index evaluates SME policies across eight dimensions, including access to finance, productivity and innovation, regulatory frameworks, and entrepreneurial skills development. The 2024 findings demonstrate:

• Improved Policy Frameworks: ASEAN countries have enhanced their SME strategies, offering more tailored support to foster inclusive and sustainable growth.
• Digitalisation and Greening: Efforts to drive digital adoption and environmentally friendly practices are gaining momentum, though many SMEs remain at early adoption stages.
• Regional Cooperation: Initiatives like ASEAN Access and the SME Academy reflect increasing regional integration to support MSMEs.

However, challenges persist, particularly in overcoming business informality, fragmented policy implementation, and limited uptake of digital and green technologies.