APEC SMALL AND MEDIUM ENTERPRISE (SME)
EIGHTH MINISTERIAL MEETING
SHANGHAI, P.R.CHINA
29-30 AUGUST 2001
JOINT MINISTERIAL STATEMENT
APEC Ministers and their representatives responsible for SMEs from Australia;
Brunei Darussalam; Canada; Chile; the People's Republic of China; Hong Kong,
China; the Republic of Indonesia; Japan; the Republic of Korea; Malaysia; Mexico;
New Zealand; Peru; the Republic of the Philippines; Russian Federation; Singapore;
Chinese Taipei; Thailand; the United States of America; and Viet Nam gathered
during August 29~30, 2001, in Shanghai, the People's Republic of China, for
the 8 th APEC SME Ministerial Meeting. The APEC Secretariat was present.
The Pacific Economic Cooperation Council (PECC) and the Pacific Islands Forum
(PIF) also attended as observers.
Ministers held a joint session with representatives from the Business Forum.
Ministers welcomed the extensive involvement of SMEs and both sides welcomed
this opportunity for dialogue and supported continued efforts toward producing
mutually desired results. During the Ministerial Meeting, representatives from
SMEs in the region held a concurrent Business Forum and Exhibition in Shanghai.
The theme of the Ministerial Meeting is "New Century, New Challenges:
Innovation and Environment for SME Development". Ministers held wide-ranging
discussions on how APEC SMEs could best respond to the new challenges emerging
in the new century with focus on the following three issues:
- Advancing Technological Innovation;
- Facilitating Financing; and
- Improving the Environment for SME Development.
Ministers welcomed the APEC Secretariat report on the extensive SME-related
activities and action plans by the various APEC fora. Ministers agreed to further
encourage various relevant APEC fora to consider incorporating SME-related activities
into their work.
Ministers welcomed the report delivered by the Chair of APEC SME Working Group
(SMEWG), and thanked SMEWG for its efforts in the past year in implementing
directives of the 7 th APEC SME Ministerial Meeting. Ministers endorsed
the recommendations contained in the report, including the Proposal for the
Interaction with the Business Community (Annex 1), in order to encourage enhanced
and sustained participation of the business/private sector in SMEWG activities.
Ministers received a briefing by the lead economies on the following ongoing
APEC SMEWG activities:
- Training and Certification Program of APEC SME Counselors
(Canada/Philippines)
- Business Partnership Initiative (USA/Thailand)
- APEC SME Profile 2000 (Chinese Taipei/PECC)
- Cooperation Program for SMEs and New Business Support (Japan)
Ministers welcomed detailed presentations of the above projects and called
for all economies to continue to support and enhance these valuable work programs
contributing to human capacity building and information sharing to benefit SMEs
across the Asia-Pacific region.
Ministers endorsed the SMEWG amendments to the related sections of Osaka Action
Agenda (OAA), and directed SMEWG to continue to push for the implementation
of relevant initiatives and activities. Ministers welcomed the decision to allow
Macao, China to participate in SMEWG activities in the capacity of guest until
the end of the year 2003.
Ministers welcomed the reports by ABAC Chair and ABAC SME Caucus Chair, and
expressed appreciation for ABAC's support and contribution to SME-related activities
in the APEC region.
Ministers welcomed the statements made by PECC and PIF.
New Challenges Facing the New Century
In this world of accelerating economic globalization, advances in science and
technology continues apace, and knowledge is recognized as a core competence
in accumulating wealth. Technological innovation is a driving force behind social
and economic development. And this in turn relies more and more upon new technologies,
new products and new industries, as well as increasing linkages among industries,
universities and research institutes. This is the new context and economic environment
for SMEs.
This new environment has created favorable conditions for SMEs to develop in
a broader range of fields and offered unprecedented opportunities, but also
poses new challenges.
Ministers noted that the Asia-Pacific region had experienced a slowdown in
its economic growth recently. Lackluster market demand, falling exports, and
elements of instability in the financial markets, all combine to add to the
uncertainty in the Asia-Pacific economic prospects, thus exposing APEC SMEs
to a more complicated market environment.
Ministers pointed out that member economies have achieved notable results in
addressing many of the difficulties confronting SMEs, such as the lack of access
to information, technological disadvantages, financing problems, inefficient
marketing and managerial skills. However, Ministers shared the view that economies
must continue to address the priority issues of technological innovation, financing
and human capacity building for the region's SMEs to achieve long-term and sustainable
growth. Ministers stressed the need to continue examining thoroughly the problems
and obstacles that are faced by SMEs, especially micro-enterprises.
It is of vital importance to improve the efficiency and competitiveness of
SMEs in the face of an increasingly globalized and knowledge-based economy.
Advancing Technological Innovation through Cooperation
Technological innovation is a central and perpetual theme in the development
of SMEs. Ministers agreed that SMEs are a formidable force in the new economy
and that their continuation to growth can be strengthened by increasing their
innovative capacity. Ministers appreciated the full awareness of this fact among
APEC member economies that have accordingly formulated their own strategies
and policies for the development of science and technology, particularly information
and communication technologies to advance SME growth and development.
Ministers noted that SMEs in traditional industries can also contribute to
economic growth by introducing advanced and applied technology, to speed up
the adjustment of the product mix and technological improvement, to expedite
the industrialization of new high-tech products, and to support those SMEs that
are technology-based, export-oriented and service-focused.
Ministers noted that some member economies have adopted measures aimed at fostering
technological innovation and collaboration among industries, universities and
research institutes. Examples include technology matching, open labs, incubators,
as well as innovation clusters in the form of critical mass of skilled people,
expertise, capital and entrepreneurial drive. Ministers called for further emphasis
on the linkages between industries, universities and research institutes, as
this will ultimately help enhance the innovation capacity and competitiveness
of SMEs.
Ministers appreciated member economies' efforts to promote technological innovation
by creating a favorable economic environment. In addition, the establishment
of service centers for technological innovation and productivity centers , innovation
incubators, and science and technological parks will benefit the technological
innovation of SMEs by providing specialized services in technology, qualified
personnel, information, finance and laws. This will also foster the innovativeness
and innovation culture in SMEs and strengthen the protection of intellectual
property rights.
Ministers recognized the need for further actions to increase the R&D input
by SMEs through multiple channels. Ministers were pleased with the effective
efforts made by some members in setting up funds for the benefit of technological
innovation, patent applications, personnel training, as well as in establishing
mechanisms for venture capital for technology.
Ministers welcomed broader and stronger exchange and cooperation in the areas
of new technologies, new processes, new equipments and advanced management expertise
in promoting optimization and upgrading of industrial structures, especially
closer cooperation in high-tech industries, infrastructure projects, environmental
protection and human resources development. This will benefit all concerned.
Ministers welcomed the new project "International Cooperation Forum on
Innovative Management Skills" as proposed by Russia and encouraged all
member economies to take an active part in this project so as to enhance exchanges
and share experience.
Facilitating Financing
Ministers fully recognized the importance of financing to enable the sustainable
development of SMEs. It was noted that the key factors affecting SMEs' access
to financing in the member economies include: lack of security and collateral,
high costs of financing, limited sources of funds, few financing channels, inadequate
financing institutions serving SMEs, the lack of management skills, and poor
corporate governance standard in SMEs.
Ministers appreciated the actions taken by all member economies toward easing
the financing difficulties faced by SMEs, where governments no longer directly
provide funds for SMEs but instead assist SMEs to access to capital.
Ministers pointed out that venture capital is essential to the development
of SMEs, especially in the ICT sector. Ministers decided that it is necessary
to improve the policy and personnel exchange relating to the venture capital
system and regulatory models, and that actions should be taken to set up an
APEC-wide mechanism for sharing information on start-up companies, venture capital
and capital markets with a view to facilitating the sharing of resources.
Ministers encouraged further improvements on the secondary boards catering
to the needs of SMEs. Ministers recommended that a study be undertaken on the
feasibility of harmonizing access thresholds across economies, as proposed by
ABAC, while strengthening the information exchange and cooperation between regulatory
bodies as well as between regulatory bodies and listed companies.
Ministers commended the efforts made by Chinese Taipei this year in addressing
the issues of venture capital, start-ups and SMEs, as well as other related
issues and facilitating member economies to share experience among themselves
through the APEC Symposium on "Best Practices for Entrepreneurship and
Start-up Companies" held in Taipei in August. Ministers looked forward
to Chinese Taipei's efforts on developing a Guideline for Best Practice in this
regard.
To further the cooperation in the region on the finance facilitation for SMEs,
Ministers instructed SMEWG to continue to enhance the policy dialogue and exchange
of experience among APEC members in building a favorable financing environment,
especially in the development of capital markets, for the start-up and development
of SMEs. It is of particular importance for developed economies to share their
lessons learned with developing members.
In addition, Ministers also attached special importance to women entrepreneurs
and encouraged all economies to facilitate financing for them.
Improving the Environment for SME Development
Ministers recognized that the 21 st century is full of opportunities
as well as challenges. Therefore it is of vital importance for SMEs to learn
to respond to this constantly and rapidly changing global environment.
Ministers reaffirmed that continued efforts should be made to create a better
environment for the development of SMEs. They welcomed APEC ECOTECH Action Plans
(EAPs) which outline individual and cooperative actions and are to be submitted
on a voluntary basis annually to the APEC Ministers. The EAPs will be beneficial
to the promotion of cooperation among SMEs.
Recognizing the importance of a better understanding of SME profile in the
region, Ministers tasked the SMEWG to work further for the enhancement of the
project: "1990-2000 Profile of SME in APEC", and encouraged economies
to submit the necessary information in order to facilitate the completion of
the project.
A fair competition environment is a prerequisite for the survival and development
of SMEs. There are successful experiences available in some members of APEC
to demonstrate this. Nevertheless, continued efforts in strengthening regulatory
policy environment, and in establishing rules and regulations conforming as
far as possible to international practices are still required. Ministers further
urged member economies to continue creating increasingly transparent policies
and regulations in aid of the development of SMEs.
Ministers welcomed the US proposal for a Voluntary Visitor Program by APEC
SME officials, as it would benefit the SME policy-makers in developing economies,
and help them to better serve SMEs. Ministers instructed the SMEWG to facilitate
early implementation of the program in 2002.
Ministers called for further application of ICT in SMEs, and for enhancing
government's support on e-commerce and for joint implementation of "Cooperation
Program for SMEs and New Business Support" and for the continuation of
the work with OECD, to bridge the Digital Divide that already exists among members,
to improve the scientific management and decision-making skills in SMEs, and
to apply ICT to procurement, sales and services as well.
Ministers appreciated the contributions made in this connection by the E-Commerce
seminars and relevant research projects undertaken by Brunei Darussalam and
Chinese Taipei in 2000 and 2001 respectively.
Ministers recognized that ICT provides an advanced means for SMEs to take advantage
of the global markets. Ministers agreed in principle to the proposal of establishing
an APEC SME Portal Hub and asked Canada, PECC, other interested economies and
APEC Secretariat to work further on the proposal.
Ministers held initial discussions on PECC's proposed "Scorecard for Entrepreneurial
Environment" and urged for follow up.
Ministers also expressed appreciation for the contribution made by the APEC
SME 2001 Conference on Strategic Alliance for Efficient Supply Chain Management
hosted by Thailand, and instructed SMEWG to explore ways to realize increased
cooperation in the area.
Ministers recognized that it is imperative for SMEs to strengthen cooperation
through multiple channels so as to reduce or eliminate the adverse impact from
rapid changes in the marketplace. These include: cooperation among SMEs, vertical
and horizontal alliances with larger enterprises and partnership with overseas
companies.
Ministers believed that the evolving Business Partnership Initiative project
led by the United States is making a major contribution to the establishment
of business partnership program among SMEs in the Asia-Pacific region. Ministers
expressed their satisfaction with the results achieved under the initial U.S.--Thailand
Strategic International Alliance and Matchmaking Program. Ministers welcomed
the update of new programs being launched with Singapore and other interested
member economies.
Ministers recognized that building such support systems for SMEs is an indispensable
assurance for the development of SMEs, and an important channel for SMEs to
gain access to external resources at lower costs in the new environment.
Ministers welcomed the Training and Certification of SME Counselors program
that involved 15 APEC economies with Canada and the Philippines as coordinating
economies. They were supportive of the program becoming operational, and encouraged
future similar programs to be initiated by governments in aid of the development
of SMEs in the Asia-Pacific region.
Ministers were appreciative of the SME-related activities conducted by other
APEC fora in other fields, and encouraged continued enhancement of interaction
between appropriate fields and fora to contribute to the sustainable development
of SMEs.
Strengthening Capacity Building of SMEs
Ministers supported the proposal put forward at the High-level Meeting on Human
Capacity Building held in May 2001, in Beijing, and believed that it is important
for all stakeholders, including governments, businesses and education/training
institutions to work together and to get actively involved in the development
and capacity building of human resources through the following channels:
- to encourage the cultivation of entrepreneurship and enterprising spirit;
- to step up input in training;
- to encourage the participation of operating and management personnel from
SMEs;
- to strengthen education and foster a life-time learning system;
- to seek equitable participation opportunities for women and
- to promote application and dissemination of information technology through
regulations and measures, and to expand the role of Internet in the development
of SMEs and micro-businesses.
Ministers urged member economies to take follow-up actions actively to implement
the Beijing Initiative for the benefit of SMEs with combined efforts by all
stakeholders, including governments, academic and businesses and to pursue substantive
results in human capacity building.
Ministers recognized that the new environment resulting from globalization
and the development of New Economy has placed higher and more stringent demands
on SME entrepreneurs and managers. In particular, the shortage of skills in
technology, management and international trade has become an unnecessary hurdle
hindering the development of SMEs. They recognized the continued need to build
up the capacity of SMEs and to encourage young people and entrepreneurs to start
up their own businesses.
Ministers welcomed the "Evolving Cooperation Initiative for SMEs and New
Business Support", and were pleased with the contributions made by Japan
in the area of management and skills development for the past two years.
Progress of Integrated Plan of Action for SME Development (SPAN)
Ministers maintained that it is important for each member economy to promote
SMEs having regard to SPAN, and hoped to promote the exchange and sharing of
information and experience among member economies. Ministers welcomed the reports
on SPAN progress delivered by China; Malaysia and Hong Kong, China during the
two SMEWG meetings this year.
Ministers encouraged other member economies to report voluntarily on the progress
of implementing SPAN on a periodic basis so as to share their successful practices
and experience with all others.
Interaction with the Business/Private Sector
Ministers instructed the SMEWG to strengthen the contact and interaction with
the business/private sector in routine work, including holding seminars on a
non-regular basis, conducting in-depth surveys and questionnaires on SMEs, so
that they can receive more government support and have their concerns and recommendations
taken on board by government. Ministers looked forward to more active participation
by business/private sector as appropriate in SMEWG activities, and future SME
Ministerial Meetings and related events.
Ministers welcomed the recommendations delivered by the Women Leaders' Network
(WLN) Meeting and representatives from the Business Forum, and appreciated their
positive contributions toward promoting the development of SMEs in the Asia-Pacific
region (Annex 2 and 3), and instructed the SMEWG to study and implement the
recommendations as appropriate.
Ministers were pleased to have had an interactive discussion with the delegates
of the Business Forum. Ministers hoped that this kind of dialogue mechanism
will be kept alive and further developed to better enable the voices from the
business/private community to be heard, for a timely understanding of the problems
and difficulties in their growth to be achieved, so that tailor-made policies
can be formulated. Business representatives welcomed this opportunity to exchange
views with Ministers at the joint session and other occasions arranged during
the meeting. Ministers believed that the WLN, ABAC and the Business Forum should
continue their close interaction with the Ministerial Meeting, and keep Ministers
informed of developments on a timely basis.
Conclusion
Ministers hoped that APEC SMEs will embrace creative thinking and take innovative
actions, build up the capacity in earnest to enhance efficiency and competitiveness.
Ministers called for all member economies to continuously create and improve
an enabling environment for SMEs while at the same time to promote the exchange
among members. Ministers noted that this meeting was convened at a time when
the New Economy and the accelerating globalization are exerting a more extensive
impact on the economic development and business climate. Therefore, Ministers
particularly stressed that member economies should strengthen cooperation and
policy dialogue to attract as many businesses as possible into the APEC process.
Ministers thanked the Chair for his leadership during the meeting and also
thanked the Chinese government and the Chinese people for their hospitality.
Ministers looked forward to the next Ministerial Meeting to be held in Mexico
in August 2002.
