MSMEs have long played a pivotal role in the economic development of
AMS. MSMEs make up 96 percent of all enterprises and generate a minimum of 63
percent and maximum 99 percent of total employment in the region. They also
contribute to between 30 percent to 53 percent of total GDP of ASEAN, and
between 19 to 31 percent of total exports of all ASEAN economies (Win Zaw Min,
2012; Tambunan, 2009a; ADB, 2009; Goh, 2007; OSMEP, 2010). However, the role
and importance of these enterprises vary by country, depending on numerous
domestic factors, such as the level of economic development, economic structure,
poverty level, the size of the market, business climate, as well as government policies
or regulations that affect either directly or indirectly the activities and dynamism of
businesses (e.g. the birth of new firms, the growth of firms in size, and so on). Table 3
summarizes the contribution of MSMEs in the economies of AMS.