weak private sector with equally weak capacity to capitalise on opportunities.Small and medium-sized enterprises (SMEs)dominate the business sector in BIMP-EAGA and impediments to the growth of SMEs in EAGA are plentiful. these include rising costs of production and inputs inadequate framework of policy and programme support and competition from foreign imports. Moreover SMEs often lack access to credit and finance for working capital and investment appropriate technology markets and market information.the private sector has been designated as the sub-region's engine of growth but this engine is not sufficiently well-oiled to spur investments and growth.there is need for increased emphasis on SME development if growth in the sub-region is to be private sector-led