Draft Working Group Meeting Report
As of 30 August 2021
1. BackgroundThe global community is distressed with the biggest crisis, caused by the sudden and rapid
spread of Covid-19 virus. As the lockdown measures introduced by many governments werenecessary to curtail the spread of the virus, businesses and industries have had to face hugefinancial and operational stress, particularly the micro, small and medium-sized enterprises(MSMEs).
In the Association of Southeast Asian Nations (ASEAN) and the plus-three countries, MSMEs
are considered as the backbone of the economy as these entities sustain the livelihoods ofmillions of people and form the fabric of many ASEAN member states. They account for 88.899.9% of total establishments and 51.7%-97.2% of total employment 1 . As such, MSMEs
contribute to better income distribution and more inclusive growth. However due to theirlimited resources, existing obstacles in accessing capital, and other constraints, MSMEs aremostly sensitive and fragile to external shocks, such as financial crises, disasters, and now the
impact of the pandemic.
To mitigate the impact of the pandemic, ASEAN Member States (AMS) and ASEAN Plus Three(APT) countries have made efforts to strengthen the resilience of enterprises as well as rolled
out substantial policy measures to assist MSMEs remain afloat and navigate through the crisis.
The following APT documents recognize and highlight the importance of MSMEs and the needto leverage on technologies and digital trade in order to sustain operations during the
pandemic:● Joint Statement of the Special ASEAN Plus Three Summit on Coronavirus Disease 2019
(COVID-19) issued on 14 April 2020;● ASEAN Plus Three Economic Ministers’ Joint Statement on Mitigating the economic
Impact of the Covid-19 Pandemic issued on 4 June 2020;● ASEAN Plus Three Plan of Action on Mitigating the Economic Impact of the Covid-19
Pandemic was formulated on 25 August, 2020;● ASEAN Plus Three Leaders ’ Statement on “ Strengthening ASEAN Plus Three
Cooperation for Economic and Financial Resilience in the face of Emerging Challenges” adopted on 14 November 2020; and1

https://asean.org/asean-oecd-release-policy-insight-boosting-resilience-msmes-amidst-covid-19-pandemic/(date accessed July 19, 2021)

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● Chairman’s Statement of the 23rd ASEAN Plus Three Summit issued on 14 November
2020, specifically under the Review and Future Direction of APT Cooperation.
2. Working Group meeting
Given the above context and after internal consultations with relevant stakeholders (i.e.
ASEAN Matter Technical Board government agencies and academic experts), NEAT
Philippines2 proposed and convened the Working Group meeting with the theme “ASEAN Plus
Three (APT) Cooperation on MSMEs: Accelerating Digital Adoption to Thrive in the New
Normal” held virtually last 21 July 2021. Among the objectives are:●
To provide a venue for knowledge sharing and exchange of best practices on policies
and programs on accelerating MSME digitalization and enhancing participation in
the digital economy among APT countries, and●To discuss policy recommendations to accelerate the MSMEs digital adoption andenhance its participation to the digital economy to thrive in the new normal underthe APT cooperation on MSMEs;●
To review existing MSME APT regional cooperation initiatives and mechanisms toadvance MSME digitization and enhance MSME participation to digital economy;●
To contribute to Brunei Darussalam’s Priority Economic Deliverables under
Digitization through undertaking collaborative research by documenting the statusof MSME digitization and their participation in the digital economy.
The said meeting was attended by 32 participants from 11 APT countries (Cambodia, China,
Indonesia, Japan, Korea, Lao PDR, Malaysia, Philippines, Singapore, Thailand, and Viet Nam).
The highlight of the meeting is the presentation of research outcomes. Divided into 3 sessions,nominated experts presented their research findings, some shared country level experiences
while others provided some regional perspectives on the above -mentioned theme. In general,
the experts affirmed the important contribution of MSMEs in their respective countries.
While the Covid-19 pandemic has had a significant negative impact on MSMEs, it has also
provided opportunities for them to shift to digital solutions and accelerate the digitalizationof business processes. However, there are common constraints and challenges that need tobe addressed for MSMEs to fully harness the benefits of digitalization.

2

With the Philippine Institute for Development Studies (PIDS) as the lead institution since 2003 for NEAT 2021
hosting, this is in partnership with the Department of Foreign Affairs (DFA) Philippines, University of thePhilippines Asian Center (UP Asian Center), and the Foreign Service Institute (FSI) Philippines.

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Limited technology and digital infrastructures and the lack of awareness and appreciation of
MSMEs on the alternatives are some of the barriers to adoption.
The third and fourth parts of this report will focus on the recommendations from the experts
in accelerating the digital adoption of MSMEs in the new normal. The Secretariat divided therecommendation into two parts: Capacity building and creation of an enabling
environment. These recommendations served as the basis for the NEAT Philippines
conclusion. The last part of this report contains the logistical arrangement of this WG.
3. Policy Recommendation: (1) Capacity Building and Education
The bulk of the recommendations from the experts focused on the need to equip all
stakeholders with relevant skills and capacities to accelerate digital adoption to thrive in the
new normal. They emphasized that capacity building, and best practices in APT countries,
need to be center-stage in strengthening the MSMEs. The varying level of digitalization among
MSMEs would need targeted training interventions. They further highlighted that the
governments should collaborate with relevant stakeholders such as the academics,
businesses, and communities in order to implement the capacity building efforts. These
trainings may support the removal of obstacles in using digital services and to develop thetrust of MSMEs to fully participate in the digital economy.
Therefore, they recommended that there should be:
3.1.
access to the targeted trainings on:a. improved marketing and sales skills in an environment shifting towards online
commerce, the use of social media, new advertising platforms and mixed
marketing;3b. e-bill, e-payment, mobile money, digital trade facilitation, e-customs, intellectual
property rights, safety and security of transaction and so on;c. integration into the digital trade and economy, access to digital infrastructure suchas fintech, cybersecurity 4 , blockchain, protection of private data, cross-borderdata, tax imposition on digital transactions;
3

Skills enhancement in creating impactful online presence such as digital literacy, and competencies inmarketing and advertising will help businesses to become more competitive in the online market space. Skills
needed in management for strategic planning and for finding market niche will help businesses to immediately
respond to the challenges and opportunities presented by shocks and disruptions
4 It is imperative to strengthen cybersecurity, to protect confidential information, and to put in place penalties
on fraudulent behavior. MSMEs are likely to be prime targets due to their lack of the necessary resources andsecurity policies to defend against cyberattacks, as well as lack of general knowledge about best practices;

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d. business processes, corporate governance, financial management, businessstrategy planning, and adaptive management;e. improving the competitiveness of MSMEs’ products, particularly around attaining
price premia through advances in image and brand identity, certifications andstandards; and’
3.2.
targeted intervention for women- and youth-led businesses, and micro andsmall enterprises in terms of innovation which will equip these businesses withknowledge and technical know-how in the creation of product and service portfolios
suitable and adaptable to the needs of the market;
3.3.
inclusion of digital literacy in formal education and creation of open curricul aabout data science, the internet of things, Distributed Ledger Technology (DLT),
blockchain and digital payments. Academic institutions and professional communities
can play a leading role in building digital workforce capacity in their countries; and3.4.
provide online seminars and other outreach activities, preferably tailored to
MSMEs in different sectors, with very specific instructions on how to apply, question
and answer (Q&A) sessions and a frequently asked questions (FAQ) chat rooms
relating to COVID-19 support measures.
4. Policy Recommendation: (2) Creating Enabling Environment
Further to the recommendations focusing on capacity building, the experts identified
recommendations for APT countries, the region, and the MSME sector to aid in accelerating
the digital adoption of MSMEs.
4.1.
APT Governments
According to the experts, the governments of the APT countries should:
a. Infrastructureo strengthen ICT infrastructures in those areas and segments that are alreadyconnected and bring new connectivity to unconnected and underserved areas andsegments;
o invest in digital infrastructure development and education in order to address theissue of digital divide and promotion of digital trade;b. Campaign and Partnershipso create demand for MSME products through: e-government procurement, national
campaign to buy locals and encourage partnership with large enterprises. Also, toinitiate an onboarding program for MSMEs by several ministries in collaboration
with existing market places. If the government already has self-initiated ecommerce platform, the government should assess its state to harness network
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effectively so that its community of sellers and users are on par with the currently
popular online stores;o collaborate with business and civil society to create the rules and mechanisms forchecks and balances to maintain justice, competitiveness, fairness, inclusiveness,safety, and reliability;c. Policies and Lawso strengthen laws and regulations specifically on fintechs, data privacy, consumer
protection, business competition, among others;o Maximize its digital economy and a digital society since a substantial portion of
the APT’s population now own broadband devices (either fixed or mobile) 5;o tailor policies to promote MSME digitalization to the specific characteristics anddigital needs of diverse MSMEs, such as matching MSMEs in need of certain digital
services with reliable IT firms and experts who can provide tailored advice, so as
to improve overall business performance;o disseminate policies better, notably regarding
the provision of specificguidance, processes and eligibility criteria to MSMEs;
d. Digital Economy and Services
o ensure that MSMEs are able to participate in Digital Free Trade Zones in generaland not be left marginalized;o pursue the establishment of a credit risk database, which can help in thedevelopment of credit assessment tools, in the designs and innovations of financial
products and services, and in the efficient delivery of financial services;o encourage the understanding and embrace of the new trends in business,changing consumer and client behavior, and priorities. These trends involve theuse of e-commerce, fintech, digital value chains, social media, dynamic
advertising, among others;o adopt greener and more sustainable digital technologies to benefit the
stakeholders in the long-run;o facilitate cross-border transfer of information and data by electronic means for thedevelopment of the digital economy, as well as to strengthen consumer andbusiness trust in the digital economy, while respecting both domestic andinternational legal frameworks and support ongoing negotiations on e -commerceat the WTO6;
5

Cloud services could make it possible to deliver innovative functionality at low cost; the COVID-19 pandemic
has opened the eyes of policy-makers, regulators and businesses alike to the advantages of digitally enabling awide range of economic activities
6
In order to unlock the full benefit of digital services, citizens and businesses, especially MSMEs, need to adopt
and use these services.

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e. ICT Skills7
o take a look into the issue related to lack of skilled workers in ICT. Priorities should
be given to enable skilled labor mobility within the region in the medium term tosupport the booming digital economy and its ecosystem ;o develop career paths with appropriate evaluation, recognition and reward
mechanism for building a skilled workforce relevant to Distributed Ledger
Technology (DLT) 8; ando equip civil servants to be ICT literate.
4.2.
APT as a Region
The experts identified the following recommendations for the APT region as a whole. The
experts mentioned that the APT region needs:
a. to have a common regulatory framework and regulatory harmonization to encouragelarge players to serve the local economy and prevent their abuses; andb. to revisit existing restrictions on data sharing and data transfer beyond its borders 9.
4.3.
Business Sector or the MSMEs
To thoroughly create an enabling environment, the MSMEs should also do their part by:a. utilizing the ICT technologies available for their business. They should have appropriatecomputer equipment, ICT literate workers and appropriate computer programs to be
applied for the production and trading process for the company;b. encouraging MSME managers to have strategic planning. This may include diversifying
their sources of critical supplies as well as sources of revenues. The hope is thatenterprises will come out of COVID-19 more mindful of risk, and more robust in theirbusiness planning;c. having strong collective voice through business associations which will help enterprises,
especially the smaller ones, to access information on markets and state -led assistanceand to connect with other business networks and other players in the supply chain;d. exploring new markets and new products, as well as new ways of operating, in a bid toovercome - or at least mitigate the difficulties caused by - the pandemic; ande. guiding MSME owners and managers to examine ways in which they interact withindividuals and organizations outside their immediate business networks
7

This will be discussed further on the third part of this paper.
Similar to those for accountants, financial analysts and engineers, independent professional organizations canhelp construct standard criteria for the workforce, and they can authorize certificates for distinguishedprofessionals on DLT.
9 It is an important component of digital trade which includes how tax is calculated for these enterprises andhow data is shared within the eco-system, inclusive of data shared with the authorities and players beyond thenational border.
8

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5. Conclusion
Given these recommendations by the experts, the NEAT Philippines proposes these tworecommendations for the APT governments:a. Continuously develop, improve, and effectively and efficiently implement capacity
building programs for all the stakeholders involved in the digitalization of MSMEs; andb. Closely collaborate with all the stakeholders to develop and sustain an enabling
environment for MSMEs to thrive in the new normal.
These are the two policy recommendations the Secretariat wants to submit to the NEATCountry Coordinators Meeting.
6. Logistical Summary
You may find the following logistical documents on the appendix:
a. Guide Questions;b. List of Abstracts and Bionotes;
c. Program flow during the WG meeting;d. List of Attendees;
e. Official press release on the working group (you may access it via
https://neat.org.ph/index.php/ue2021 )Page 7 of 22

Appendix A: Guide Questions

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Appendix B: List of Abstracts and Bionotes
Session 1: Sharing of Results and Recommendations
Moderator: Dr. Josef Yap
Senior Technical Advisor, ASEP-CELLs Project, Ateneo School of Government
Presenters:
1. Prof. Anyu Lee, China, Deputy Dean, the Institute of Regulatory Science for
Medical Devices, Sichuan University
Title: Regulatory consideration of digital economy
Abstract: Digital economy has overtaken the traditional one as the key growth enginesof many countries in the world. Internet retails of various kinds are the fastest growth
sectors of domestic economies and the cross-border eCommerce become the mostimportant mean of international trade. The major players of Digital economy develop
platforms with highly efficient transaction and distribution capabilities for merchantsand user-friendly convenience for consumes. Because of the nature of internet
technology, these players are usually global and dominant. On the other hand, we also
observe the challenges as the following: 1. Consumer protection; 2. Unfair practices;
3. Digital security. Regulation of the key players is necessary to keep this digital
revolution healthy and beneficial for all stakeholders.
Bionote: Dr. Anyu Lee, President, eBridgeChina Research Institute, Beijing, China;
Executive Director, Institute of Regulatory Science for Medical Devices, Sichuan
University. Research interest: Regulatory science, eCommerce, digital security;
Education: Phd, Electrical Engineering, Stanford University; Past career: Executive
Director, Shenzhen Research Institute, University of International Business andEconomy, China; Director, eCommerce Technology Research Center, China Academyof Sciences, China.
2. Dr. Zakir Mahmud, Indonesia, Director, the UKM Center, Faculty of Economics andBusiness, Universitas Indonesia
Title: Digitizing MSME in Indonesia During the Pandemic: Opportunities, Challenges
and Policy Responses
Abstract: It has been widely acknowledged that MSMEs are the lifeblood ofIndonesia's economy. Not only do they dominate the business landscape, but theyalso significantly contribute to GDP, and in employment creation in the country. In
addition, their socio-economic role as a safety net during the shock cannot be
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neglected. Given such a strategic role, the empowerment and development of MSME
is essential. The COVID-19 pandemic has triggered two damaging crises – health crisisand economics crisis all over the world. Government’s containment policies (e.g.
lockdown, social distancing, mobility restriction, self-isolation) to address healthissues, regrettably bring along an undesirable economic impact, particularly for MSME.
In brief, the implementation of such policies disrupts MSMEs supply chain relations
with their suppliers and consumers. To restore the relationship, it is imperative for
MSME to go digital. However, the process of digitizing MSME is not an easy task,
especially when the majority are micro enterprises. The paper discusses some
opportunities, challenges and policy responses.
Bionote: Mr. Zakir Machmud is currently the Managing Director of UKM Center(UKMC), a center of excellence in the Faculty of Economics and Business University ofIndonesia (FEB UI) that focuses its activities on the empowerment and developmentof MSME. Prior to this assignment, he served several positions as Managing Directorof LPEM (The Institute for Social and Economic Research) FEB UI (2011 – 2013), Senior
Advisor in J-PAL SEA (Jameel Poverty Action Lab South East Asia) (2014 – 2015),
Executive Director of UNIED (University Network for Indonesia Export Development)(2018 – 2020) and Advisor to Minister of Industry (2014 – 2019). Apart from his
assignments, he is also an active lecturer at FEB UI for undergraduate, post graduate
and public policy programs. He completed his PhD degree from University of South
Australia, Master degree in Economics from University of Adelaide, Australia andBachelor of Economics from University of Indonesia. Mr. Machmud’s research area ofinterest covers SME, industrial economics, competition economics, applied
microeconomics and macroeconomics.
3. Dr. Masahiro KAWAI, Japan, Councilor and Distinguished Research Fellow, Japan
Forum on International Relations / Representative Director, Economic ResearchInstitute for Northeast Asia
Title: Promoting the digitalization and digital transformation of MSMEs in Japan and
the ASEAN+3 region
Abstract: This paper examines the challenges of MSME digitalization in ASEAN+3
countries, including in Japan, and provides policy recommendations. The Japanesecase shows that the adoption of digitalization is high for large firms and low for small
firms within the MSME sector. Major challenges include: the widespread analog
culture within a firm; no clear corporate objectives; lack of IT literacy and appropriate
IT tools; and inadequate financing. Given that closing the digital knowledge gap for
lagging MSMEs is key, Japanese government policies have focused on matching
MSMEs in need of digital services with IT firms and experts who provide tailoredadvice on the introduction of needed digital services on a firm-by-firm basis.
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Challenges for the ASEAN+3 region are: the digital divide among countries due toinadequate ICT infrastructure in some countries; regulatory barriers to thedevelopment of digital services; and digital literacy among MSMEs.
The paper provides policy recommendations to promote MSME digitalization in the
ASEAN+3 region. The most basic point is to improve the business environment for,and policies targeted to, MSMEs. Specific recommendations are to: strengthen ICT
infrastructure; remove obstacles to using digital services through better digital
literacy, skills, access and affordability; promote access to finance; and encourage
participation in international trade and networks through e-commerce. A case-bycase policy support is needed to promote digitalization for MSMEs, such as improving
digital literacy for lagging MSMEs and encouraging digital transformation (DX) foradvanced MSMEs.
Bionote: Dr. Masahiro Kawai holds a BA in economics from the University of Tokyoand an MS in statistics and a PhD in economics from Stanford University. Dr. Kawai
began his professional career as a Research Fellow at the Brookings Institution andthen taught economics at The Johns Hopkins University and the University of Tokyo.
Dr. Kawai also served as: Chief Economist for the World Bank's East Asia and the PacificRegion; Deputy Vice Minister of Finance for International Affairs and President of the
Policy Research Institute of Japan's Ministry of Finance; Special Advisor to the AsianDevelopment Bank (ADB) President; and Dean and CEO of the ADB Institute. While
teaching at the University of Tokyo as Professor Emeritus, he is currently serving as aCouncilor and Distinguished Research Fellow of the Japan Forum on International
Relations (JFIR) and heading the Economic Research Institute for Northeast Asia
(ERINA). He also serves as a Councilor of the Bank of Japan and a Senior Fellow of the
Policy Research Institute of Japan's Finance Ministry.
Dr. Kawai's recent publications focus on Asian economic integration. He has publisheda number of books and more than 180 academic articles on international economics,
money and finance, Asian economic integration and cooperation, and global economic
governance.
4. Mr. John Paul C. Flaminiano, Philippines, Associate Director & Senior Economist,
Asian Institute of Management Rizalino S. Navarro Policy Center for
Competitiveness
Title: Journey to Recovery and the Next Normal for Philippine MSMEs
Abstract: This report aims to analyze the recovery journey of small businesses in thePhilippines one year into the COVID-19 pandemic. This study builds on the previous
findings of “The Road to Recovery and Resilience for Philippine MSMEs During thePage 11 of 22

COVID-19 Pandemic” to give a more complete assessment of micro, small, andmedium enterprises (MSMEs) response strategies. As a follow-up to the previous
MSME report, this study will focus on inclusive business activities, which is a criticalsolution to boost local economies and sustain post-pandemic recovery. The report will
also investigate the trends and patterns of changing response strategies, such as
digitalization and e-commerce, as small businesses gear up for the next normal.
Bionote: John Paul "Paul" C. Flaminiano is the Associate Director and Senior Economist
at the Asian Institute of Management (AIM) Rizalino S. Navarro Policy Center for
Competitiveness (RSN-PCC). He currently handles the Center’s research initiatives on
SME competitiveness and workforce development.
He was a former Economist at AIM RSN-PCC. Prior to joining AIM RSN-PCC, he was a
Research Associate consultant at the Economic Research and Regional Cooperation
Department (ERCD) of the Asian Development Bank (ADB).
Paul obtained his MA Economics degree from the University of Ottawa. He also holds
an MA Economics degree from the University of the Philippines School of Economics,
and a BA degree majoring in Economics with a minor in Sociology from the Universityof Manitoba.
Discussant:1. Dr. Joefe Santarita, NEAT Philippines, Asian Center, University of the Philippines
Bionote: Joefe B. Santarita is a Professor and former Dean of the University of thePhilippines’ Asian Center (UPAC). He is also a faculty affiliate of the UP Open University
ASEAN Graduate Studies Program and of the UP Tri-College Ph.D. Philippine Studies
Program. Furthermore, he sits in the Editorial Board of the Asian Studies Journal, andDiliman Gender Review and currently serves as Associate Editor of the Plaridel Journal.
Dr. Santarita has completed his doctoral degree in South Asian Studies from the
National University of Singapore, his master’s degree in Asian Studies at the UPAC andhis bachelor’s degree in History and Community Development from UP Visayas. His
research interests and publications focus on Indian Studies, Migration Studies, ASEAN
Studies, maritime history, and renewable energy. Moreover, Dr. Santarita wasrecipient of several awards and grants such as the Fulbright Scholar-in-Residence
Program, German Academic Exchange Service, Southwest Pacific Dialogue Art andCulture Scholarship and Japan-ASEAN Youth Fellowship among others. He also
received several awards including the University’s highest distinction for exemplary
performance in teaching in 2019.
Session 2: Sharing of Results and Recommendations
Moderator: Dr. Aniceto Orbeta
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Senior Research Fellow, Philippine Institute for Development Studies
Presenters:
1. Dr. Choong Lyol Lee, Korea, Professor, Department of Economics, Korea University
Title: Regional Cooperation in Digital Economy for SMEs in APT Countries
Abstract: We check the pre-conditions of the digital economy for SMEs in terms ofhardware and software and find that SMEs of developing countries had difficulty tohave them. Appropriate hardware and software have not been provided yet for them.
High-speed internet networks, appropriate laws and regulation, equipment such as
PCs and cash machines or capable workers with ICT literacy are not given to them. In
some way, developed countries in the APT such as Korea and Japan may giveassistance for developing countries to be equipped with this hardware and software.
For example, it can help to have a law and regulation or to run an education program
to reduce ICT
Bionote: LEE, Choong Lyol is a professor of Economics at Korea University, Sejong,South Korea. He acquired Ph.d in Economics from the Ohio State University (1992) andworked at the Korea Institute Finance as a research fellow for 6 years before moving
to the university in 1998. He has held the post of deans of College of Business andEconomics and College of Public Policy in Korea University at Sejong. He served as
President of the Korean Payment and Settlement Association and Director General of
the Korean Institute of Southeast Asian Studies. He has studied the financial market,
payment and settlement industry and SME finance of developing countries,
particularly, Southeast Asian countries as well as Korea for the past several decades.
He wrote on the papers on the financial market and SME finance such as “Financial
Accessibility and Economic Growth” and “Assessing the Financial Landscape for the
Association of Southeast Asian Nations Economic Community”, “Profitability on
Corporation Banks in ASEAN”, and many others. He participated into many projects todevelop the financial market and industry of developing countries such as Guatemala,Honduras, Indonesia, Laos, Malaysia, Myanmar, Nepal, Nigeria, Thailand, and etc. In
addition, he edited several books such as ASEAN-Korea Relations: Twenty-five Yearsof Partnership and Friendship (KISEAS, 2015) and Partnering for Tomorrow: ASEAN Korea Relations (ASEAN-Korea Centre and KISEAS, 2017).
2. Dr. Juita Mohamad, Malaysia, Research Fellow, Institute of Strategic andInternational Studies Malaysia
Title: The Boom of Digital Trade and the Challenges Faced by MSMEs in Malaysia and
ASEAN Post Pandemic
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Abstract: The presentation will focus on the importance of the digital economy in apandemic and post-pandemic world. To date, 98.5% of business establishments (morethan 900,000) in Malaysia are MSMEs, with micro-enterprises making up 76.5% of thisamount. Relevantly, SMEs employ about 66% of the workforce and contribute roughly
40% to the country’s GDP. This, is generally the trend across ASEAN. While this being
the case, there are obstacles for MSMEs to participate in the digital economy. Amongthem are the digital divide, lack of capacity and lack of skilled workers on the ground.
Towards addressing these issues, policy proposals will be highlighted to ensure
inclusiveness in digital trade in ASEAN and beyond. This includes improving internet
access in rural areas, ensuring fair competition laws, reskilling talent, emphasising
capacity building and best practices, among others.
Bionote: Dr Juita Mohamad is a Fellow in the Economics, Trade and Regional
Integration (ETRI) Division of ISIS Malaysia. Previously, she has worked at the Asia
Desk, OECD in Paris, at ISIS Malaysia, the Asian Development Bank Institute andWaseda University in Tokyo, Japan. She is also an Indo-Pacific Fellow at Perth US Asia
Center. She holds a Ph.D. in International Studies from Waseda University, Japan. Her
research focused on the impact of trade liberalisation on wage inequality between
skilled and unskilled workers in Malaysia. She obtained her Master's Degree in
Economics from Shiga University, Japan and her Bachelor's Degree in Business
Administration from UKM. Her research interests include trade, regional integration,
protectionism, wage inequality and the informal sector.
3. Dr. Connie Bayudan-Dacuycuy, Philippines, Senior Research Fellow, Philippine
Institute for Development Studies
Title: MSMEs and their adoption of digital solutions: Challenges and support measures
Abstract: The ongoing pandemic has prompted businesses to shift to digital solutions
like the use of online payment platforms, alternative financing schemes such as
crowdlending, online advertisements, and online selling on social media or on
established e-commerce platforms. While some enterprises have been agile indigitizing their ways of doing business, some are not financially capable and technicallyequipped to invest in connectivity, software, equipment, and devices needed to adopt
digital solutions. This note looks into the opportunities and chall enges in the adoptionof digital solutions, and recommends some ways for businesses to fully harness its
benefits.
Bionote: Connie is a development economist with a focus on issues related to genderand the family, poverty and social protection and structural transformation. She iscurrently a senior research fellow at the PIDS. Prior to joining PIDS, she was anPage 14 of 22

assistant professor at the Economics Department of the Ateneo De Manila University
and a consultant to the Asian Development Bank. She obtained he r Ph.D. in Economics
at Kyoto University.
Discussant:1. Mr. Jovito Jose Katigbak, NEAT Philippines, Foreign Affairs Research Specialist,
Foreign Service Institute Philippines
Bionote: Mr. Jovito Jose Katigbak is a Foreign Affairs Research Specialist (FARS) II of
the Center for International Relations and Strategic Studies (CIRSS) of the Philippine
Foreign Service Institute (FSI). He undertakes policy-oriented research and analysis on
trade and development-related matters, under the International Trade and Economics
section. Mr. Katigbak has published articles on ASEAN integration, Philippine trade
policy, internet economy, and sustainable development.
Session 3: Sharing of Results and Recommendations
Moderator: Dr. Francis Mark Quimba
Senior Research Fellow, Philippine Institute for Development Studies
Presenters:
1. Mr. Liu Bojian, Singapore, Research Assistant, East Asian Institute
Title: Blockchain as an Infrastructure of Multilateralism: Implications to East Asia
Digital Economy
Abstract: For MSMEs in East Asia, lowering the cost of cross-border digital businesshas been facing five technical challenges: (1) payment, (2) financing, (3) logistics, (4)arbitration and (5) taxation. In the backdrop of the booming digital economy across
East Asia, tackling those challenges requires multilateral coordination andtechnological solutions. Blockchain, also known for the distributed ledger technology(DLT), is promising in tackling above five problems. In the era where data can bedecisive in economic development, blockchain is perhaps especially significant tosmall states who would otherwise be disadvantaged in a data shortage due to smaller
populations and economic size. Blockchain’s applications in data trading and financing
may empower small states and small businesses with greater efficiency andtransparency. Overall, this paper attempts to argue that, as an infrastructurebalancing the efficiency and equality in decentralized approach, blockch ain canstrengthen multilateral institutions buttressing more robust trusts among states in
East Asia.

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Bionote: Bojian LIU is a Research Assistant at East Asian Institute at National Universityof Singapore. With a regional focus on Asia-Pacific, he is working on international
digital governance from legal and political-economy perspectives.
2. Mr. Akkanut Wantanasombut, Thailand, Researcher, Institute of Asian Studies,
Chulalongkorn University
Title: The Regulatory Dilemma: Thailand’s Digital Transformation in Retail
Abstract: As the COVID-19 situation continues, physical distancing is necessary. While
the global economy sinks into a recession, the pandemic has accelerated a huge
growth in digital retailing all over the world. In Thailand, not only traditi onal large
retailers digitally transformed themselves, many new emerged MSME merchants andshoppers are also actively engaged with digital platforms.
Like many countries, Thailand makes efforts to promote e-commerce during the crisis.
At the same time, the government has emphasized closing the gap of the digital divideand initiated regulations such as the antitrust, revenue code, personal data protection
act, etc. to cope with e-commerce. However, regulations that are not well-adapted to
e-commerce may create barriers to entrepreneurs.
This paper discusses the current issues on digital retailing transformation in Thailand.
In particular, contradictions between traditional regulatory frameworks and the highly
dynamic digital economy.
Bionote: Akkanut is currently working at the Institute of Asian Studies, Chulalongkorn
University. After receiving his B.Eng. in Mechanical Engineering in 2002, he was activein various industries, such as construction, electronics, automotive, restaurant, andimport-export. His career led him to travel throughout the Asian region and brought
about a growing interest in the societies and cultures of his neighboring countries. He
went back to school at Chulalongkorn University in 2011, where he received his M.A.
in Southeast Asian Studies. He is a PhD Candidate in Thai Studies. His researchinterests include platform economy, cross-border e-commerce, digital economy, andfuture of work. During the peak of Covid-19 pandemic, Akkanut creates a project for
motorcycle taxi drivers and street food vendors in Bangkok. By applying the solidarity
economy framework, Akkanut and his team have created a community-based
platform, the so-called ‘Tamsang-Tamsong’ which promote job security and digital
literacy for the vulnerable.
3. Dr. Nguyen Anh Tuan, Viet Nam, Professor in International Economic, Deputy
Director General, Institute of Foreign Policy and Strategic Studies, Diplomatic
Academy of Vietnam, MOFA of Vietnam

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Title: Viet Nam’s Micro, Small and Medium Enterprises in Post Covid-19: Overcoming
Constraints and Accelerating Digital Adoption
Abstract: Micro, small and medium enterprises (MSMEs) play vital role in Viet Nam
economy since they accounted for more than 98 % of all business, 40 % of GDP, and
50 % of total employment. Yet despite this, MSMEs in Viet Nam can face greater
vulnerability to shared barriers as well as additional barriers to start up and/or expand
their businesses. The barriers faced by MSMEs are further exacerbated in times of
economic uncertainty and downturn, such as that currently being experienced as aresult of the global COVID-19 pandemic. The unprecedented impact of the COVID-19
pandemic has been felt across Viet Nam and the business community since thebeginning of 2020.
In response, MSMEs have been gradually looking for adaptive and innovative solutions
to protect and pivot their business operations including setting up new ventures
targeting changing market patterns and consumer behavior. As the initial catatoniclike shock of COVID-19’s impact starts to lessen, MSMEs are in search of businesssolutions that can equip and support them in the post-COVID-19 “new normal”
position. The paper is intended to provide analysis on the depth and extent of COVID19’s impact as well as to inform a series of pertinent policy recommendations on how
Viet Nam can best address the adverse effects on MSMEs and address specificconstraints and acceleration of digital adoption facing MSMEs in the post-COVID-19
new normal period.
Bionote: Nguyen Anh Tuan got a bachelor degree of Economics at Moscow University(former Soviet Union) in 1986 and master and doctor degrees at University of Malaya(Malaysia) in 1995 and 2003 respectively. He worked as a researcher at the Instituteof World Economy (Academy of Social Sciences and Humanity of Vietnam) for 8 years,
then a lecturer and dean of the Faculty of International Economics, the Diplomatic
Academy of Vietnam (MOFA) from 2003-2008. He also completed 3 terms of foreign
service at the Embassy of Vietnam in Malaysia, Australia and Ukraine. He has written
a number of books and articles published in both Vietnam and abroad, in Vietnamese
as well as in English. He was conferred the title of associate professor in 2007. He wasalso Editor-in-Chief of Journal of International Studies of Diplomatic Academy ofVietnam from 2012-2017. Now he is Deputy Director General of Institute for Foreign
Policy and Strategic Studies, Diplomatic Academy of Vietnam and Ministry of Foreign
Affairs of Vietnam as.
Discussant:1. Mr. Bounphieng Pheuaphetlangsy, Lao PDR, Deputy Director, Strategic andInternational Studies Division of Institute of Foreign Affairs

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Bionote: Bounphieng joined the Institute of Foreign Affairs (IFA), under the Ministryof Foreign Affairs of Laos in 2010 as a coordinator for ASEAN Institute for Strategic
and International Studies (ASEAN-ISIS). From 2016-2018, Bounphieng pursued
a master’s degree in public administration, specializing in policy analysis at theCollege of Business, Government and Law, Flinders University, Ade laide, Australia.
Following that, he returned to the IFA. Since then, he has conducted research on
various areas, such as economics, international relations, regional connectivity, andrecently on the Belt and Road Initiative (BRI) and Mekong-Lancang Economic
Development Belt (MLEDB). Now, he is Deputy Director of Strategic andInternational Studies Division, IFA.
Appendix C: Program

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Appendix D: List of Attendees
NEAT
Name of Participant(s)/Country
Position and Affiliation(No. of
Participants)BruneiMS. HAJAH SITI MASLINA BINTI HAJI MD SAID (was not able to attend)
DarussalaActing Special Duties Officer Grade Im (1)Industry and Business Ecosystem Division, Ministry of Finance and Economy
Cambodia H.E Mr. KANG Chandararot(8)
Under Secretary of State
Ministry of Post and Telecommunication
H.E Mr. SENG Sopheap
President of Cambodia Academy of Digital Technology
Mr. SAM Sethesery

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Vice-president of National institute of Post, telecommunications andInformation and Communications Technology
Mr. SUN Rapid
Deputy Director-General of Department of Information andCommunications Technology
Mr. THAN Sokthearin
Press Attache of Minister's office
Mr. LOR Sathya
Deputy Director General
Ministry of Industry, science, technology and innovation
Mr. NOY Chumneanh
Deputy Director General
Ministry of Foreign Affairs and International Cooperation
Ms. Dolla HOR
NEAT Cambodia Contact Person
Cambodian Ministry of Foreign Affairs and International Cooperation
People’sProf. Anyu Lee, Professor and Deputy dean, the Institute of Regulatory
Republic of Science for Medical Devices at Sichuan university
China (1)Indonesia ( DR. ZAKIR MAHMUD
1)
Director
The UKM Center, Faculty of Economics and Business, Universitas Indonesia
Japan (1)PROF. KAWAI MASAHIRO
Councilor and Distinguished Research Fellow, Japan Forum on International
Relations / Representative Director, Economic Research Institute forNortheast Asia / Professor Emeritus, University of Tokyo
SouthPROF. LEE CHOONGYOL
Korea (1)Professor, Department of Economics
Korea University,
Republic of Korea
Lao
MR. BOUNPHIENG PHEUAPHETLANGSYPDR (1)
Deputy Director
Strategic and International Studies Division of Institute of Foreign Affairs
Malaysia ( DR. JUITA MOHAMAD
1)
Research Fellow
Institute of Strategic and International Studies Malaysia
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Philippines DR. CELIA M. REYES(14)
President, Philippine Institute for Development Studies and
NEAT Philippines Country Coordinator
DR. CONNIE BAYUDAN-DACUYCUY
Senior Research Fellow
Philippine Institute for Development Studies
DR. JOSEF YAPPhilippines
Expert, Regional Economic Integration
DIRECTOR JIM SAN AGUSTINASEAN Economic Community Division, Office of the ASEAN Affairs,
Department of Foreign Affairs Philippines
DR. ANICETO ORBETA
Senior Research Fellow
Philippine Institute for Development Studies
Director Jerry T. Clavesillas
Bureau of Small and Medium Enterprises Development
Department of Trade and Industry
Philippines
DR. JOEFE SANTARITA
Dean, Asian Center
University of the Philippines
MR. JOVITO JOSE KATIGBAK
Foreign Affairs Research Specialist
Foreign Service Institute Philippines
MR. JOHN PAUL C. FLAMINIANO
Associate Director & Senior Economist
AIM RSN Policy Center for Competitiveness Asian Institute ofManagement Rizalino S. Navarro Policy Center for CompetitivenessDR. FRANCIS MARK QUIMBA
Senior Research Fellow
Philippine Institute for Development Studies
MS. MELALYN MANTARINGNEAT Philippines Focal Person
MS. JEAN CLARISSE CARLOS
NEAT Philippines Focal Person
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Singapore(1)Thailand(1)
Viet Nam(1)
MyanmarMS. RONINA ASIS
NEAT Philippines Secretariat
MR. SYLWYN CALIZO
Research Specialist, PIDS
Mr. Liu Bojian
Research Assistant
East Asian Institute
MR. AKKANUT WANTANASOMBUT
Researcher
Institute of Asian Studies, Chulalongkorn University
DR. NGUYEN ANH TUAN Prof. in International Economic, Deputy Director
General, Institute of Foreign Policy and Strategic Studies, Diplomatic
Academy of Vietnam, MOFA of Vietnam
No Attendee

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