Small & medium enterprises (SMEs)
play an important role in the economies
of most countries in the Asia-Pacific
region not only because of their sheer
number but also the variety of their
activities. In part, SMEs contribute to
countryside development, as well as support large
industries and serve as a breeding ground for innovation
and adaptation. SMEs thus can be looked upon as a
source of constant renewal in commerce and industry
and as a wellspring of competition and dynamism.
Development financing institutions (DFIs), by the
nature of their development orientation and mandate,
have been for many years in the forefront of SME
promotion and assistance in their respective countries.
The success, however, of DFIs in assisting SMEs
varies from country to country because of differences
in priorities, policy directions and pronouncements
set by each country. Recent developments, especially
in the technology arena, as well as the standardization
of rules of business via the World Trade Organization,
have enabled DFIs to find some common ground in
its resolve to further support SMEs.
The Association of Development Financing Institutions
in Asia & the Pacific (ADFIAP), the Association of
Development Finance Institutions in Malaysia (ADFIM)
and the International Trade Centre (ITC) have come
together to embark on an undertaking called SME
Finance Initiative (SME/FI), pooling their respective
experiences, expertise and resources in the continued
promotion of SME development through the provision
of finance and other support services to this economic
sector.
The SME/FI was formally launched in Kuala Lumpur,
Malaysia on September 12, 2005 during the
International CEO Forum on SMEs, with the three
organizations signing the tripartite agreement.
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From L-R: ADFIAP Chair, Amb. Jesus Tambunting, ADFIM Chair Dato'
Md. Noor Yusoff, ITC Sr. Adviser on Trade Finance, Carlo Cattani.
Back L-R: Y. B. Tan Sri Nor Mohammad Yakcop and Yb ng. Datuk
Zamani Ghani.
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The SME/Finance Initiative (SME/FI) is a knowledge
cum business network that will put together
development banks, other specialized financial
institutions and development organizations in different
countries to discuss and address specific issues in
the financing of and other support services
to SMEs.
The purpose of the Initiative is to enable and promote
an international exchange of information, experiences,
and best practices on financing SMEs among banking
and finance professionals and institutions and to
further improve the development and growth of the
SME sector.
The SME/FI aims to eventually evolve into the largest
public/private partnership of like-minded institutions
in sustaining SMEs.
The Parties/Initial Signatories agree to be members
to participate in the Initiative. New parties from
other international organizations in the banking and
finance sector which are responsible for the promotion
and development of SME/FI may also join as
members. Notwithstanding that, their participation
must be consented to by the Parties/Initial Signatories
by majority vote.
The Parties/Initial Signatories will specifically focus
on the goals of the SME/FI through exchange of
ideas, experiences and best-of-industry practices;
organization of and participation in conferences,
seminars and similar activities; and promotion of the
Initiative in their respective newsletters, periodicals,
and journals, as well as websites.
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To assist members and constituencies
of the respective institutions to develop
common projects under the SME/FI;
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To facilitate an international learning exchange;
and,
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To develop electronic networks for information
exchange.
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Association of Development Financing Institutions in Asia & the Pacific (ADFIAP) is the focal point of all development banks and other
financial institutions engaged in the financing of development
in the |
Asia-Pacific region. Its mission is to advance sustainable
development through its members. Founded in 1976, ADFIAP
has currently 79 member-institutions in 36 countries. The
Asian Development Bank is a Special Member of the Association. ADFIAP
is also a founding member of the World Federation of Development Financing
Institutions composed of regional associations in Africa, Asia-Pacific, Latin
America and the Middle East. ADFIAP is an NGO in consultative status
with the United Nations' Economic and Social Council. The permanent
Secretariat of ADFIAP is based in Makati City, Metro Manila, Philippines.
(www.adfiap.org)
 | Association of Development Finance Institutions in Malaysia (ADFIM) was established on January 12, 1981 with the
following objectives: |
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to promote the establishment of
a sound institutional structure for the financing of
development in Malaysia;
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to promote sound practices
in the business and profession of development financing and development
banking;
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to represent, promote and further the interest of members in
and consultation with relevant authorities;
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to promote cooperation among
member-institutions in every possible way;
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to establish among memberinstitutions
machinery for the systematic interchange of information;
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to
encourage the carrying out of studies on problems of common interests;
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to improve the knowledge of and to raise the level of expertise and
effectiveness in all aspects of development financing and to research,
evaluate and disseminate techniques of development financing among
members; and
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to do all other things the Association may consider
desirable or necessary in the interest of members of the Association.
 | The International Trade Centre (ITC) is the
joint technical cooperation agency of the
United Nations Conference on Trade and |
Development (UNCTAD) and the World Trade
Organization (WTO) for businessaspects of trade development. Since 1964, ITC has helped the business sectors of
developing and transition economies to develop exports. ITC's goal is to
help these countries to achieve sustainable human development through
export growth with emphasis on competitiveness. ITC's ultimate clients are
export oriented firms, especially small and medium-sized enterprises in
developing countries.
In the area of Trade Support Services, ITC has developed a specific
programme focusing on facilitating access to finance for trading SMEs. The
programme is entitled Finance for Trade and in cooperation with other ITC
services has carried out activities aimed at
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Strengthening Enterprises'
skills in dealing with finance and banking issues;
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b) Reenforcing the capacity
of banks and other financial service providers and expand their offer of
products adapted to SMEs and
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Carrying out needs assessment on status
of the trade finance infrastructure at national levels and provide advisory
services to introduce new and innovative schemes to facilitate the provision
of finance to promising enterprises. (www.intracen.org)
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The CEO Forum - the dialogue cum business
networking event where chief executives meet
and learn from their own experiences as well
as from experts of other organizations
worldwide.
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The SME/FI Portal - the Initiative's official
website envisioned to be the "Knowledge Net
on SME Finance" that contain relevant
resources (readings, training events, experts,
etc.) on the subject.
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The SME Training & Advisory Center -
the capacity-building component to undertake
required training programs and technical
assistance on SME finance to assist
members strengthen their capabilities in SME
banking.
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