How can FinTech boost intra-ASEAN trade for SMEs?

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FinTech Poised to Enhance Intra-ASEAN Trade Inclusivity for SMEs

Malaysia is actively exploring the integration of financial technology (FinTech) as a pivotal element across its trade agreements with ASEAN nations. The objective is to leverage FinTech as a foundational tool to operationalise key trade pacts, such as the ASEAN Single Window (ASW) and the Regional Comprehensive Economic Partnership (RCEP). This strategic focus aims to address the current imbalance in intra-ASEAN trade, where SMEs, the backbone of the region's economy, are underrepresented, with large corporations currently dominating the landscape.
Facilitating Trade Operations and Inclusivity

FinTech is being considered as a critical enabler for the practical implementation of multilateral and bilateral agreements between Malaysia and other ASEAN countries. By streamlining financial transactions and processes, FinTech solutions can lower barriers to entry and participation for small and medium-sized enterprises (SMEs) in regional trade. The current intra-ASEAN trade volume, standing at 22 to 23 per cent of total ASEAN trade, is heavily influenced by larger entities, highlighting a significant opportunity for FinTech to foster greater inclusivity by empowering SMEs to engage more effectively in cross-border commerce.
Addressing Technological Accessibility Gaps

A significant challenge identified in the adoption of FinTech within the ASEAN region is the disparity in technological accessibility. While the potential benefits are substantial, it is acknowledged that not all individuals or businesses, particularly SMEs, possess equal access to the necessary technology. Bridging this gap is crucial for ensuring that the advantages of FinTech in trade are broadly distributed and do not exacerbate existing inequalities, thereby hindering the inclusive growth envisioned for the region's trading ecosystem.
Collaborative Efforts for a Sustainable Future

The push to integrate FinTech into ASEAN trade agreements necessitates a comprehensive approach involving various stakeholders. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz has called for a whole-of-government and whole-of-nation strategy, emphasising the importance of collaboration among investors, academia, and policymakers. Such concerted efforts are deemed essential for building a future where technology, including FinTech, drives prosperity and inclusivity for all Malaysians and the wider ASEAN community.

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How can FinTech boost intra-ASEAN trade for SMEs?

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