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APEC Project Database

Project Title

APEC Public-Private Dialogue: Advancing MSMEs’ Digital Transformation for a Balanced, Sustainable and Inclusive Growth

Project Year

2024

Project Number

PPSTI_105_2024A

Project Session

Session 1

Project Type

Standard

Project Status

Project in Implementation

Project No.

PPSTI_105_2024A

Project Title

*
APEC Public-Private Dialogue: Advancing MSMEs’ Digital Transformation for a Balanced, Sustainable and Inclusive Growth

Project Status

Project in Implementation

Fund Account

*
APEC Support Fund

Sub-fund

ASF: Connectivity

Project Year

2024

Project Session

*
Session 1

APEC Funding

89,963

Co-funding Amount

90,851

Total Project Value

180,814

Sponsoring Forum

*
APEC Policy Partnership on Science, Technology and Innovation (PPSTI)

Topics

Science and Technology; Digital Economy; Micro, Small and Medium Enterprises

Committee

SOM Steering Committee on Economic and Technical Cooperation (SCE)

Other Fora Involved

Small and Medium Enterprises Working Group (SMEWG)

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

China

Co-Sponsoring Economies

Chile; Korea; Malaysia; Philippines; Thailand

Expected Start Date

01/10/2024

Expected Completion Date

31/12/2025

Project Proponent Name 1

TAO Shuting

Job Title 1

Global Policy Affairs Expert

Organization 1

DiDi Global Inc.

Telephone 1

+86 18322581648

Email 1

Project Proponent Name 2

Not Applicable

Job Title 2

Not Applicable

Organization 2

Not Applicable

Telephone 2

Not Applicable

Email 2

Not Applicable

Declaration

TAO Shuting

Project Summary

Echoing the APEC Putrajaya Vision 2040, the project aims to empower MSMEs to enhance innovation and digitalization for a balanced, sustainable and inclusive growth in APEC region. 

The project plans to host a two-days' Public-Private Dialogue in Hong Kong, China in August 2025,, aiming to increase understanding of participants about how digitalization policy and emerging technologies boost MSMEs’ growth. The project also highlights participation from women entrepreneurs. 

Keeping momentum with previous PPSTI PPD projects, this project connects industry, i.e., MSMEs who has practiced STI tools such as mobile applications, data analytics and cloud computing, government, i.e., mid-level STI policy makers whose policies proven effectiveness in promoting digitization, and academia i.e., business school who proposes research findings. Leveraging such connectivity helps stimulate innovative and collaborative methodology to boost investment and innovation. 

The project will seek PPSTI’s endorsement of its Project Final Report before publishing on APEC website.

Relevance

Region

According to the World Trade Report 2016 released by WTO, micro, small and medium- sized enterprises (MSMEs), both formal and informal, make up over 90% of companies in many countries, accounting for 70% of total employment and up to 50% of global GDP. Increasing the connectivity of MSMEs to the internet and the broader digital economy is an important step towards achieving inclusive development as outlined in APEC Putrajaya Vision 2040, but it has yet been fully on the right and quick track. 

The successful digitalization improves business operational efficiency, data-driven decision-making, and access to new broader markets. Therefore, MSMEs’ capacity to achieve the potential of digitalization becomes a key driver of competitiveness and resilience in this rapid-changing digital era. However, digitalization also presents unprecedented challenges to MSMEs owners and employees, especially women-owned MSMEs and women employees, considering their commonly lack of STI knowledge and access to digitalization capacity building opportunities. 

This project aims to figure out the distinctive barriers and opportunities of digitalization in the context of MSMEs by combining as many perspectives as possible from government, industry, academia and civil societies. The project will identify and study at least 10 best practices of enabling MSMEs digitalization and innovation in the APEC region. Those best practices and all stakeholders’ perspectives enhance participants’ understanding and capacity in digitalizing MSMEs. All discussions and studies of best practices, along with policy recommendations on how further empower MSME’s digitalization through enhancing public-private synergies, will be drafted into a project final report as a useful reference to more audience.

Eligibility and Fund Priorities

This project addresses the capacity building needs of public and private sectors in digitalizing MSMEs. The project is eligible for the Connectivity Sub-fund as it is in line with the pillars of the APEC Connectivity Blueprint for 2015-2025:

1) Physical Connectivity: the project explores the regional landscape of informal economy and how to accelerate the transition to formal economy through the application of ICT infrastructures so as to bridge the digital gap;

2)   Institutional Connectivity: this project invites best practices from all APEC members so that the domestic learnings of public-private cooperation from one economy can be discussed at regional level and encourage more members to further participate in the regional digital ecosystem. The project also outlooks a coherent regulatory framework and concerted roadmap for MSMEs’ inclusive growth by proposing policy recommendations;

3)  People-to-People Connectivity: representatives from public, private and academia from at least 15 member economies will be invited to exchange their perspectives, best practices and innovative ideas at two dialogue events.

The project aims, as part of concerted efforts to fulfill The La Serena Roadmap for Women and Inclusive Growth (2019- 2030), to empower women-led MSEMs and encourage their entrepreneurship in the digital economy and innovation. The project also supports the implementation of APEC Internet and Digital Economy Roadmap by proposing policy recommendations and promoting cooperation of regulatory approaches to advance the development of digital innovation and digital economy. Promoting the inclusive growth of MSEMs and women, the project contributes to the fulfillment of APEC Putrajaya Vision 2040.

Capacity Building
The project, by inviting practice sharing and policy exchanges, will help participants, especially those representing the APEC developing members, have a better understanding of barriers and opportunities facing by MSMEs and what can be done to accelerate MSMEs’ digitalization and narrow the digital divide. In this project, capacity building works in two dimensions. For one thing, the proportional representatives from public, private and academia sectors of at least 15 various economies enable adequate exchanges of perspectives and best practices both on business operations and regulatory framework. The interpretation of regulation by policy makers helps private sectors understand the potential ways of better integrating their business plan into the policy framework and macro development strategies. The broad participation and sharing of private stakeholders enhance policy makers’ knowledge and capacity to formulate enabling and practical policies. For another, the domestic learnings of public-private cooperation from one economy are to be discussed with all member economies. The successful practices from one economy can be replicated in other economies. This can further encourage all members to participate more fully in the regional business ecosystem and reinforce collaboration. The project final report developed after the workshops will be circulated through APEC official channels to reach to more audience.

Objectives

The overall objective of the project is to encourage MSEMs’ adoption of enabling technologies and services, thus building up their digitalization capacity and business competitiveness, by inviting best practices sharing among government, academia and industry in APEC region. The project also aims to enhance policy makers’ knowledge on the issue and support them to formulate holistic government policy frameworks in their domestic market.

Alignment

APEC

Echoing Peru's 2024 APEC priorities of promoting innovation and digitalization for transition to formal economy, the project focuses on understanding the informal economy landscape in APEC region and building up MSMEs’ digitalization capacity by holding public-private dialogue and inviting best practices sharing. The project contributes to the APEC Connectivity Blueprint for 2015-2025 by committing itself to strengthen connectivity among industry, government, academia, as well as civil societies. Striving for an inclusive growth through innovation and digitalization, the project contributes to the fulfillment of APEC Putrajaya Vision 2040.

The project, advancing the progress of the Small and Medium Enterprises Working Group Strategic Plan 2021-2024, seeks to enhance MSMEs’ inclusive capability development towards digitalization and innovation by holding public-private dialogues and inviting best practices sharing. 

The project supports the implementation of APEC Internet and Digital Economy Roadmap by proposing policy recommendations and promoting cooperation of regulatory approaches for the development of digital innovation and digital economy. Policy makers are encouraged to coordinate with and involve private stakeholders in the policy making process to create a favorable digital ecosystem. 

The project also addresses Policy Partnership on Women and the Economy (PPWE) Working Group’s priorities, paying specific attention to women-owned MSMEs’ and facilitates access of women entrepreneurs to ICT and entrepreneur success stories, as part of concerted efforts to fulfill the La Serena Roadmap for Women and Inclusive Growth (2019-2030).

Forum

Underlining the PPSTI Strategic Plan (2016-2025), the project aims to strengthen the synergy of government, academia and industry, including MSMEs’, and promote public- private-partnerships for digital innovation as constantly advocated by PPSTI. By inviting best practices from all member economies, the project also intensifies ICT knowledge sharing and regional connectivity. Such connectivity helps to align awareness and form concerted efforts to boost investment and innovation.

This project is designed as a sequel to two PPSTI APEC Public-Private Dialogue projects, namely APEC Public-Private Dialogue on Sharing Economy and Digital Technology Connectivity for Inclusive Development endorsed in 2018 and APEC Public-Private Dialogue on Challenges, Opportunities, and Digitally-enabled Recovery in the Post- COVID Era endorsed in 2021. Differentiate itself from the previous two projects, this new project focuses on MSMEs’ digitalization and STI capacity building.

Beneficiaries and Outputs

Outputs

1)  Background Research and Back Research Report

The Background Research will be conducted by the contracted Researcher team before the Public-Private Dialogue for preliminary data collection and analysis, in order to develop a view on 1) the current state of the digital transformation in MSMEs in the APEC region, and 2) challenges and opportunities shared by APEC economies for further development of MSMEs' digitalization. 

The contracted Researcher team will be requested to conduct literature review and online survey questionnaire on the Project topic. The key findings from the Background Research Report will help the Project focus on issues most pertinent to the member economies and develop substantive and relevant agenda as well as effective policy recommendations. 

The contracted Researcher team will also deliver a presentation at the beginning of the Dialogue to share all their perspectives and findings so to offer a general picture on the topic to all attendees to the Dialogue. This also helps with the achievement of efficient and in-depth Dialogue discussion.

2) Public-Private Dialogue in Hong Kong, China, August 2025

The Public-Private Dialogue will be held in Hong Kong, China in August 2025 for two days. PO will invite at least 12 speakers from public and private sectors to share their best practices on empowering MSMEs’ digitalization and propose initiatives for concerted efforts. The Dialogue will also seek participant nominations from all member economies. An audience of 50 will be engaged to the dialogue. 

The following topics will be included during the Dialogue: 1) presentation of Background Research Report; 2) in-depth sharing of best practices on empowering MSMEs’ digitalization by private, public sector and business school experts; 3) suggestions and policy recommendations to further enhance digitalization capacity of MSME. 

Striving for a non-biased and inclusive discussion, a balanced engagement of private sector and public sector, developed economies and under-developed economics, male and female, will be achieved. 

A Post-dialogue Survey will be disseminated after the dialogue to assess impact of the project, such as the knowledge gain amongst Dialogue attendees, whether the Dialogue has satisfactorily addressed gender issues related to the main topic. The Post-dialogue Survey result will be included in the Completion Report.

3) A Project Final Report
A Project Final Report, with a minimum of 20 pages excluding annexes, will be developed by a contracted Researcher team. The structure of the Report includes executive summary, topic background research, best practice discussion and analysis, lessons learned from the Public-Private Dialogue, and policy recommendations. The report will be submitted to PPSTI for endorsement and then released on official website to be accessible to all member economies. The purpose of the report is to provide a reference to a more range of audience in the region on how we can make concerted efforts to advance the MSMEs’ digital transformation for a balanced, sustainable and inclusive future.

Outcomes

1) Enhanced awareness of the participants of the status quo of the digital transformation of MSME's in the APEC region.

2) Greater attention to MSME group, especially women-led MSMEs on how they can be engaged and empowered for successful digitalization.

3) Increased understanding of the private sector participants of the potential ways to better integrate their business plan into the policy framework and macro development strategies (through the regulation interpreted by the policy makers.)

4)  Enhanced knowledge and capacity of the policy makers to formulate enabling and practical policies.

5) Enhanced Public-Private synergies to make concerted efforts for a sustainable and inclusive growth.

Beneficiaries

The primary beneficiaries will be all speakers and participants to the Public-Private Dialogue.

1) Speakers or participants from private sector, e.g., MSMEs owners, will benefit from the direct exchange with policy makers, academia and other private sector players. They will gain a sense of priorities of government regulation, business philosophies from business school experts, and investment inspirations as well as practical skillsets from other sector players’ sharing.

2) mid-level STI policy makers will be able to communicate on site with many MSMEs owners not only from their own economies but also from other economies. New perspectives and new best practices can be useful reference to their future policy- making. Policy makers will also benefit from policy recommendations proposed by contracted Researcher team.

3) experts from business schools or international organizations are another groups of invited participants. Their participation is important for their professionalism and neutrality endow their perspectives with high credibility and feasibility. They will also gain first-hand information and knowledge from direct communication with business and government from APEC region. 

The secondary beneficiaries are those who will read our Project Final Report when it is released on APEC website. They will learn about all those best practices and policy recommendations, which might be a valuable resource of knowledge and provide useful reference to their work.

Dissemination

The Project Final Report will be disseminated electronically to all speakers, participants and PPSTI focal points for their comments and improvement. Upon endorsement by PPSTI, the Project Final Report along with policy recommendations will be published on APEC website for all’s reference. The PO team has no intention to put in commercial use of any outputs.

Gender

Please see Project Proposal in Supporting Documents folder.

Work Plan

Please see Project Proposal in Supporting Documents folder.

Risks

Please see Project Proposal in Supporting Documents folder.

Monitoring and Evaluation

Please see Project Proposal in Supporting Documents folder.

Linkages

1) The project will seek best practices nomination from SMEWG and DESG.

2) The project invites experts from National University of Singapore to be the Researcher Contractor to conduct Background Research and draft the Project Final Report.

3) This project is designed as a sequel to two PPSTI projects (APEC Public-Private Dialogue on Sharing Economy and Digital Technology Connectivity for Inclusive Development endorsed in 2018 and APEC Public-Private Dialogue on Challenges, Opportunities, and Digitally-enabled Recovery in the Post-COVID Era endorsed in 2021. Differentiate it from the previous two projects, this new project focuses on empowering MSMEs’ digitalization.

Sustainability

The project will enhance the knowledge of both public and private sector on MSMEs’ digitalization development and foster sectoral synergies to make concerted efforts. It is expected that participating policy makers will have a better understanding of the benefits of increasing MSMEs’ access to digital tools and technology as a basis for formulating enabling regulatory framework. 

The Project Final Report will serve as a useful reference to all people from APEC region for a longer term. The PO’s organization will monitor the status of any participant economies taking forward any of the recommendations proposed in the Project Final Report by collecting feedbacks through Post-dialogue Survey. The PO will also keep in touch with participants and continue to report findings to PPSTI.

Direct Labour

Please see Project Proposal in Supporting Documents folder.

Are there any supporting document attached?

Yes
Project No.
Project Title
Project Status
Fund Account
Sub-fund
Project Year
Project Session
APEC Funding
Co-funding Amount
Total Project Value
Sponsoring Forum
Topics
Committee
Other Fora Involved
Other Non-APEC Stakeholders Involved
Proposing Economy(ies)
Co-Sponsoring Economies
Expected Start Date
Expected Completion Date
Project Proponent Name 1
Job Title 1
Organization 1
Telephone 1
Email 1
Project Proponent Name 2
Job Title 2
Organization 2
Telephone 2
Email 2
Declaration
Project Summary
Relevance
Objectives
Alignment
Beneficiaries and Outputs
Dissemination
Gender
Work Plan
Risks
Monitoring and Evaluation
Linkages
Sustainability
Direct Labour
Are there any supporting document attached?
hdFldAdmin
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Secretariat Comments
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PD Sign Off
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Content Type: Standard Proposal