SME’s Play Vital Role In Economy
By Izam S. Ya'akub

Bandar Seri Begawan - Small and Medium Enterprises in the country face many challenges in their efforts to establish themselves. One such avenue earmarked for growth is the path of Internationalisation for Small and Medium Enterprises.

Although easier said than done, it has long been recognised by those in the private and public sectors as a pathway littered with opportunities and challenges.

At the official opening ceremony of an APEC workshop for SME Programme Managers entitled "Reducing SMEs' Compliance Cost" and hosted by Brunei Darussalam in July, the Permanent Secretary at the Ministry of Industry and Primary Resources, Dato Paduka Awg Hj Mohd Hamid Hj Mohd Jaafar, highlighted that the growth of Brunei's Micro and Small Medium Enterprises (MSMEs) could be assured by going global.

Dato PadukaAwg Hj Mohd Hamid, the guest of honour at the function, highlighted that the trade among member economies of APEC has increased from 67.5 per cent in 1991 to the "APEC Export Dependency on APEC Markets" of 72.8 per cent in 2003, with SMEs possessing the potential to add approximately US$1 trillion annually to the currentAPEC trade of US$3 trillion.

This highlights on a global scale the substantial potential of SMEs in contributing towards markets and economies and the important role SMEs have. to play in the diversification and expansion of Brunei's economy.

As Brunei's Micro and Small Medium Enterprises A(MSMEs) foray into global markets, they experience many challenges with the Sultanate having higher labour costs than other countries in the region. As such, greater emphasis is placed on achieving competitiveness in niche markets in the global market which suits the different strengths of MSMEs in the country.

The Sultanate this year has been involved in talks with Chile, New Zealand and Singapore as part of the `P4', formally known as the "Trans-Pacific Strategic Economic Partnership Agreement", which looks to end all trade tariffs in New Zealand, Chile, Singapore and Brunei by 2015.

Similar foreign trade developments and bilateral agreements are set to promote trade and business between countries and it is hoped that they may serve as platforms where SMEs are able to operate from.

Currently in the Sultanate, the government of His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam plays a vital role in facilitating SME development, with different departments at the Ministry of Industry and Primary Resources aimed at assisting SMEs in various fields.

The Promotion and Entrepreneurial Development Division (PED), Trade Industry Information Centre, Brunei Industrial Development Authority (BINA) and and Resource Centre all play significant roles in the SME development in Brunei and give further aspirations for SMEs to venture into the global market.

However, it is up to entrepreneurs themselves to fully utilise the assistance made available by the public sector.

Internationalisation of Small and Medium Enterprises and the challenges and opportunities that arise from it shall be one of the workshop topics during the Asia Europe Emerging Economic Leaders Forum from September 20 to 23.

Participants will be invited to discuss challenges, opportunities and obstacles for increased business cooperation between Asian and European SMEs. -- Courtesy of Borneo Bulletin

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