Outcomes of the APEC SME Finance Forum22 September 2015Iloilo City, Philippines

Zenaida Cuison-MaglayaUndersecretary, Regional Operations Group

Department of Trade and Industry

Significance of MSMEs

• 97% of all enterprises

• 70% of all employment

• 35% of global exports

MSMEsLarge Enterprises

MSMEs Access to Finance

45%55

%

Served

Unserved & Underservered

Key Challenges

• Lack of real estate commonly accepted as collateral against loans

• Micro and Small entrepreneurs lack movable assets eligible as collateral

Concerns to Address

• Inadequate legal and institutional infrastructure to support risk-based lending

• Lack of enabling environment for equity-based financing of small innovative enterprises

• Lack of access to insurance of vulnerable Micro- and Small enterprises

APEC SME Finance Forum

APEC SME Finance Forum

• Developing the MSME Lending Infrastructure

• Expanding Access to Finance for MSMEs in Supply Chains

• Developing Alternative Financing Options for MSMEs

• Strengthening MSMEs’ Resilience Through APEC Initiatives

APEC SME Finance Forum

Recommendations

• Establishment of credit information systems and improvement of policy frameworks for secured transactions; use of movable assets as collateral.

• Public-private dialogues

• Establishment of APEC expert groups and development of roadmaps on Disaster Risk Financing and microinsurance

CollaborationIloilo Initiative – Cebu Action Plan

Pillar 1: Business Matching and Networking• Directories of MSMEs and business opportunities

Pillar 2: Trade Regulations • Information on trade related measures of APEC

economies (to be linked to the APEC Trade Repository and the WTO/ITC websites)

Pillar 3: Knowledge Center • Trade Promotion Organizations• APEC SME Services Alliance• Financial Infrastructure Development Network• Cross Border E-Commerce Training Program• And Others