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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