CLOSING REMARKS Establishment of the ASEANChina Free Trade

CLOSING REMARKS

Establishment of the ASEAN-China Free Trade Area in 2010 Liberalization of trade in services Important Milestones Trade in goods liberalization for ASEAN-6 in 2010 and 2015 IMPACT OF CAFTA Establishment of the ASEAN-China Centre for Trade, Investment and Tourism Promotion • Promotes trade between China & ASEAN combined trade value amounts to 1/10 of world trade • Provides chances to develop practical economic situation • Improves people’s living standards (especially the middle class) and technological progress for ASEAN region.

Session 1 Ministerial Forum: Maximizing Trade under CAFTA: How ASEAN and CHINA Can Benefit from the FTA

Session 1 CAFTA – A Successful Saga

Session 1 CAFTA needs regulations to Focus on Micro aspects in developing CAFTA • accessibility of finance protect ASEAN SMEs – i. e. 99% of businesses in Indonesia are SMEs • knowledge and training programme/centers, education support, etc. • establish focal points (eg. ASEAN hubs) • local Strategic partnership

Session 1 Thailand Export Strategies to China Maximizing Trade under CAFTA: How ASEAN and China can Benefit from FTA • • Promote and support high potential service trade eg. restaurants, education, health & beauty, spa, construction, architect, hospitality service, security, entertainment, etc. Encourage & support Thai entrepreneurs’ business establishment in China Expand business networking for each product cluster Establish new business channels (eg. ECommerce)

The potential of CAFTA went largely unnoticed by the SMEs that constitute the biggest part of our economies Why? Because the CAFTA vision is still a vision of Governments KADIN INDONESIA Session 1

Session 2 Doing Business with China – Understanding Standards, Rules and Regulations

Doing Business with China • Proliferation in the usage of non-tariff barriers • China’s industrial policies – consolidation of industries • Existence of protected sectors: - trade barriers - exemptions from China’s competition law • Differential treatment accorded to foreign SMEs • The domination of collectivism Session 2 Adopting specific strategies • localisation of business Industrial Standards management • Positioning of brand In China • Capitalisation of market potential Fundamentals for Trade with China Developing the right attitude • Perseverance • Adapt and adopt • Abiding laws

Session 2 Tariffs: no longer the main consideration of business community. Need to ensure NTB not abused Concerns mainly in area of non-tariff barriers - NTB do not pose a problem, if consistent with international obligations

Session 3 Turning Crisis into Opportunity: Strategies for Entrepreneurs in the Current Economic Climate

Session 3 Increase in middleincome population supports consumption – ASEAN’s middle class population could reach 300 million by 2014, which should underpin consumption growth. This is much larger than China’s or India’s!! Don’t be complacent Reassess business plan Be flexible NEXT STEP…. Take advantage of Asia’s recovery Build relationships Go regional

Session 3 ASEAN-China FTA COLLABORATIVE PARTNERSHIP APTEC - A HIGH IMPACT PLATFORM TO DRIVE SME & JOBS

What was yesterday’s market is not available today – the niche for you may no longer be a niche Session 3 SMEs need to be the frontier of technology , meaning the real innovation. Not imitation!! Dato’ Haji Mohamad Iqbal Rawther

Session 4 E-Commerce Crossing the Borders at the Click of a Mouse

Session 4 SME Business Challenges Today • Rising competition • Fast-changing business dynamics • Legacy in business processes • Technology bottlenecks – hardware & software • Talent issues

Session 4 Keys to Success • Adequate ecommerce infrastructure in place • Policy and regulatory http: //b 2 b. asean-cn. org • B 2 B before B 2 C in E-Commerce: Crossing the Borders at the Click of a Mouse framework certain countries • International and local collaborators

Step to Next Generation B 2 B Commerce Salary earners – Can they survive ? It’s a jungle out there! Session 4 SMEs – They know how to survive in the real world

Session 5 Logistics and the Value-Chain System: Opportunities for SMEs

Session 5 Criteria for SMEs in the Logistics Industry Timeliness Cost 4 criteria Safety of goods Quality of goods delivered Opportunity for SMEs>>> Logistics companies i. e. MASKargo outsource services to third party.

Session 5 WAREHOUSE • Build-Up • Breakdown RAMP AIRSIDE • Towing MAINTENANCE & SUPPLY OF MOVABLE EQUIPMENT • Folk lift, tow trucks, of movable equipment OPERATION • Document Sorting

Session 6 Trade Finance: Trading Beyond Borders

• Banks actively financing SMEs: - Covering 40% of total portfolio - Loan approvals rose by 23% - Total loan increased to RM 150 million • Initiative to simplify application process loan • Involvement of private Government sectors &

KASIKORNBANK PLC.

Session 7 The Way Forward: Maximizing Growth for SMEs in the China-ASEAN Economies

Promote greater awareness on CAFTA

Leverage on ecommerce platform

• SMEs in ASEAN should be strengthened to take full advantage of the growing Chinese markets. • SMEs in ASEAN should focus on developing their own Research and Development capabilities to complement the growing demand in China. • Take advantage of financing i. e. , ADB’s ASEAN China Investment Fund II, which seeks to raise $250 million in total capital, and plans to invest in companies that will benefit from increasing trade between ASEAN bloc and China.

• Create strategic alliances ü SMEs are in a better position to capitalize on FTAs to enhance profit, advantage and growth ü SMEs leverage on their combined knowledge, capabilities, and other assets • Study market structures and demand in China üCustomers in China are fragmented due to the country's vast population • Identify target customers in China ü Tailor-fit products according to specific profile of target market in China • Products entering Chinese market also need to have local language labeling

Concerted efforts • • • SMEs Governments Academic and Research Institutions International and Regional Institutions Big business

CREATION OF SOCIAL ENTERPRISE AS A VEHICLE FOR SOCIOECONOMIC TRANSFORMATION OF COMMUNITY

Governments can promote the growth of its SME business through several levers: Legislative Tax cut and exemption policies Fiscal Spending Financial markets

SME BUSINESS CENTRE INFOLINE 1 -300 -88 -1801 Business Advisory Services (BAS) THANK YOU SMS for Grants Status & Other Information VIRTUAL SME INFORMATION CENTRE www. smecorp. gov. my Send to 15888 SMECORP 34