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Regardless of the size of the domestic economy, there are ample reasons for firms to extend their markets beyond home shores. These include increasing sales, improving profits, diversifying risks, reaping economies of scale, matching the moves of competitors, enhancing competitiveness or accessing government incentives. Both Indonesia and Malaysia seek to enhance the competitiveness of their micro, small and medium enterprises (MSMEs) by including internationalization goals in their respective national development plans for these enterprises. Findings from fourteen case studies in the two countries indicate that exporting may be a serendipitous discovery, as few of these cases were born global in intent. Shifting to intentional exporting will require entrepreneurs to tap into government and/or private networks and thus connect with international buyers. Indonesian MSMEs are more inclined to depend more on government than private networks as they perceive the former to be more credible. Malaysian cases indicate some firms prefer private to government networks. This is attributed to the differences in the political economy of the two countries. Going forward, both countries need to consolidate their government-run programmes and reduce the fiscal burden. MSMEs should tap more into private networks to bridge the information gap that hinders their access to external markets. ASEAN can facilitate the entry of MSMEs into the ASEAN market by implementing resolutely current plans to reduce technical barriers to trade.

Small business --- Export marketing --- Export merketing --- Government policy --- International marketing --- Overseas marketing --- Marketing --- Businesses, Small --- Medium-sized business --- Micro-businesses --- Microbusinesses --- Microenterprises --- Small and medium-sized business --- Small and medium-sized enterprises --- Small businesses --- SMEs (Small business) --- Business --- Business enterprises --- Industries --- Size --- Exports --- International trade

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Growing urbanization, increasing trade and investment due to integration, and emerging new business models like e-commerce are accelerating the demand for efficient logistics in each ASEAN country. The logistics sector is inherently complex due to its scope, ranging from physical infrastructure covering four modes of transport, customs, and services. Each of these sub-sectors is regulated by different government agencies, leading to complex challenges in each country's logistics sector. Policymaking has a tendency to be done piecemeal rather than integratively, while a more or less fragmented governance structure impedes implementation. ASEAN liberalization commitments focusses on raising the cap on foreign equity, while regulatory reform remains untouched. Also, flexibility offered in these commitments allows for non-compliance. Going forward, developing seamless logistics requires ASEAN countries to first overcome their domestic challenges. Each country needs to develop comprehensive plans, and effective implementation of these is essential. Liberalization commitments should complement domestic reforms in each country.

Business logistics --- Infrastructure (Economics) --- Transportation --- Public transportation --- Transport --- Transportation, Primitive --- Transportation companies --- Transportation industry --- Locomotion --- Commerce --- Communication and traffic --- Storage and moving trade --- Capital, Social (Economics) --- Economic infrastructure --- Social capital (Economics) --- Social infrastructure --- Social overhead capital --- Economic development --- Human settlements --- Public goods --- Public works --- Capital --- Supply chain management --- Industrial management --- Logistics --- Economic aspects --- Investments, Foreign --- Integrated logistic support. --- Logistic support, Integrated

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Findings from a recent survey done to identify the barriers and benefits of e-commerce for Malaysian SMEs in the retail and food and beverage services indicate that both e-commerce adopters and non-adopters are similar in that they perceive the CEO or decision-maker to be the most important factor in the adoption of e-commerce. The relative importance of the other three main factors (namely, organizational, technological and environmental) differ for adopters and non-adopters. Likewise, there are also differences in response based on firm size. Based on the survey findings, Malaysia needs to shift from one-size-fits-all strategies to a more nuanced policy response that addresses the differences in perceived barriers of adopters and non-adopters and which is also cognizant of firm size. Grant recipients are more concerned about technological and environmental factors, indicating that grants need henceforth to be accompanied by appropriate policies that address these two barriers. The perceived benefits focus more on the domestic market than on exports. Getting firms to invest in e-commerce does not automatically lead to export. Exporting via e-commerce requires complementary policies that focus on specific issues, such as digital marketing at the targeted export destination.

Small business

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Money market. Capital market --- Transport. Traffic --- Physical distribution --- Southeast Asia

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Economics