Luxury holiday homes fever extends from Europe to Asia. In the Philippines there are already small and medium enterprises commonly known as SMEs that are already connected to the chain of value across the globe. In the Asia-Pacific Economic Cooperation (APEC), analysts have revealed that integration and globalization focus in the Asia-Pacific region is considered to be the harder stuff that APEC has to attend to.
The Executive Director of APEC, Dr Alan Bollard said that the industry of cottages are local and are not yet globalized.
Bollard pointed out in an interview that the SMEs do not often have the human capabilities, money and even the technical capabilities in order to scale up. However in a separate informal meeting with the senior officers of APEC, the Trade Secretary, Gregory Domingo pointed out that the SMEs are already a part of the worldwide value chains, however, there are still those that still operate as separate and distinct cottage industries. The latter are much smaller than SMEs and could also include some micro-enterprises.
The trade secretary further said that the cottage industries pertain to smaller business people who have one to five person types of operation activities. Some of these businesses have very good quality products which are mainly in the food processing and also in handicrafts. These businesses are also in the industry of manufacturing furniture and in the production of items which are smaller. These businesses would need most of the help.
Bollard stated that those SMEs which are globalized have already taken a much bigger role in the worldwide arena. There are more than 90 percent of businesses in the APEC economies that are small medium enterprises.
Bollard further stressed it out that in the global value chains; East Asia is the world’s leading global value chain. Approximately a decade ago, you need to be a multinational or part of a very big government industry in order to trade in major enterprises across borders. This situation has now changed. The globalized SMEs are not only placed in one country but are built in different economies and services and components which are going in and out of the economies.