Digitalization, AI key to stronger Asean MSMEs

The national flags of the ten member states of the Association of Southeast Asian Nations (ASEAN) flutter in the breeze outside a summit venue, representing regional unity and political cooperation across Southeast Asia.
The national flags of the ten member states of the Association of Southeast Asian Nations (ASEAN) flutter in the breeze outside a summit venue, representing regional unity and political cooperation across Southeast Asia.Pexels
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MANILA — Digitalization and artificial intelligence are no longer optional for micro, small and medium enterprises (MSMEs) as they seek to remain resilient, competitive and productive in a fast-changing economy, a Philippine economic official said.

Department of Economy, Planning and Development (DEPDev) Undersecretary and Organisation for Economic Co-operation and Development (OECD) Southeast Asia Regional Programme (SEARP) Co-Chair Joseph J. Capuno made the statement at the 2026 OECD Southeast Asia SME Regional Forum, where he called for stronger Asean cooperation to help MSMEs accelerate their digital transformation and prepare for future disruptions.

Canadian Ambassador to Asean and SEARP Co-Chair Ambra Dickie and Alexander Böhmer, head of the OECD Global Relations and Cooperation Directorate's South and Southeast Asia Division, also underscored the role of OECD-Asean cooperation in promoting resilient, inclusive and sustainable growth across the region.

MSMEs account for 97 percent to 99 percent of business establishments in Asean, provide about 85 percent of employment and contribute nearly 45 percent of the region’s gross domestic product.

Many, however, still face barriers to financing, markets, skills, connectivity and digital technologies.

Held under the theme “Building Resilient Enterprises through Digitalisation and AI,” the forum examined how digital tools and AI can help MSMEs raise productivity, strengthen supply chains, expand market opportunities and withstand economic shocks.

In the Philippines, strengthening MSME digital capabilities forms part of broader efforts to build a more productive, technology-driven economy.

The country’s digital economy reached an estimated PHP 2.74 trillion in 2025, equivalent to 9.8 percent of gross domestic product. Government initiatives continue to expand affordable internet access, promote emerging technologies such as AI, and use digital innovation to drive economic growth and productivity.

Capuno said regional cooperation would be critical to ensuring that businesses across Asean can benefit from the digital transition.

“Asean can build on our collective strengths to expand opportunities for our SMEs, and strengthen their resilience to future disruptions. Together, we can ensure that the opportunities created by digitalization and AI are accessible, inclusive, and beneficial to all,” he said.

Through the OECD Southeast Asia Regional Programme, Asean member states work with the OECD on policy dialogue, knowledge-sharing, and capacity-building initiatives covering cybersecurity, AI governance, customs digitalization, and MSME digital readiness. PR

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