FedEx-commissioned report stresses SMEs, Asian consumer demand

SMALL and medium sized enterprises - 95 per cent of Asian businesses, employing 80 per cent of the workforce, will be vital to economic recovery this year, says Asia Pacific FedEx Express president David Cunningham.
Mr Cunningham made his statement based on a FedEx commissioned study from The Economist Intelligence Unit (EIU) entitled "Towards the Recovery: Challenges and Opportunities facing Asia`s SMEs".
Said Mr Cunningham: "Throughout this decade we have witnessed the flow of goods into China as it has acted as the assembly line for the region, and then exports out of China to the west. This research shows that Asian consumerism is a force that will lead the region back to prosperity."
The report, by the London research consultancy attached to The Economist newspaper, contends that trade will benefit from more Free Trade Agreements (FTAs). Based on interviews with corporate officers at SMEs, regional experts and a review of recent studies published by leading authorities, also incorporates research from the Asian Development Bank and national governments.
Researchers propose a rebalancing of regional economies to reduce reliance on western consumers and instead re-gear to meet growing Asian demand, adding that China retail sales grew 15 per cent in the first three quarters of 2009.
Increases in intra-regional trade is related to the growing number of Free Trade Agreements (FTA) in Asia which mid-2009 totalled 54 FTAs among themselves and with countries outside the region.
The recent FTA between China and the Association of South-East Asian Nations (ASEAN) will create a common market of some 1.7 billion people and 90 per cent of goods traded between China and ASEAN`s six richest member states already enjoy zero tariffs.
But despite cross-border business opportunities many SMEs struggle to handle multiple tariff schedules and difficult documentation, customs regulations and duties that all create trade barriers, said Mr Cunningham.
For a free download of the report visit: http://www.eiu.com/sponsor/fedex/towardstherecovery or ftp://fedexEIU:fedexEIU7tp@ketchum.com.hk