ASEAN MSMEs Are Going Digital, but Cross-Border Trade Is Still Full of Friction
More than 80% of surveyed ASEAN MSMEs reported cross-border e-commerce challenges despite widespread use of digital tools. The post ASEAN MSMEs Are Going Digital, but Cross-Border Trade Is Still Full of Friction appeared first on TechRepublic .
ASEAN policymakers and business leaders are pushing for deeper digital integration among MSMEs, yet cross-border e-commerce continues to present significant challenges. An overwhelming 80% of 700 surveyed micro, small, and medium-sized enterprises reported difficulties in their cross-border e-commerce operations, despite widespread adoption of digital tools.
The surveyed businesses were already engaged in international sales through e-commerce, indicating these challenges are not unique to non-digital enterprises. Marketplace access, payment providers, logistics companies, and technology vendors all face a patchwork of issues as they expand across countries with varying rules, infrastructure, and platform access.
According to the SCOPE Trade report, 74% of respondents identified ASEAN as one of their top five e-commerce export markets, with 53% citing digital tools as a reason to sell abroad. However, marketplace access remains uneven, with only 49% of transactional B2C marketplaces in ASEAN allowing foreign sellers. This often necessitates local entities or other arrangements that introduce additional costs and complexity.
Payment and trade infrastructure also exhibit fragmentation, as demonstrated by Apple Pay's limited rollout in the Philippines, illustrating how bank participation, payment systems, and merchant acceptance differ across markets. The Philippines' central bank recently proposed stricter payment-operator rules, emphasizing the need for country-specific compliance planning even as regional infrastructure improves.
To boost MSME participation in cross-border e-commerce, 95% of business support organizations surveyed selected market-led training, while 75% favored peer-to-peer exchange and mentoring. Sixty percent of respondents prioritized MSME-friendly domestic rules, compared to 45% who favored implementation of the ASEAN Digital Economy Framework Agreement (DEFA).
Despite the recent conclusion of DEFA negotiations, the agreement remains a cornerstone of the region's economic agenda. At meetings in Manila on September 20, ASEAN economic ministers and business leaders discussed digital integration, DEFA implementation, supply-chain management, and investment priorities. Until regional rules translate into interoperable systems, companies seeking to expand across Southeast Asia will need to navigate marketplace access, payments, logistics, and regulatory requirements on a per-market basis.
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