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Small and Medium Enterprises (SMEs) are a vital engine of ASEAN’s economy, accounting for over 90% of all businesses and serving as a key source of employment and income distribution. However, most SMEs still face limitations in accessing global markets. It is found that SMEs contribute only 20% to ASEAN’s total exports. To overcome these constraints, digital transformation has become a crucial key that unlocks new opportunities – enhancing production efficiency, fostering innovation, and elevating competitiveness.
SMEs across various industries are beginning to recognize the importance of digital transition. Agri-SMEs, those in the agriculture and food sectors, which are critical to food security that show significantly lower levels of digital readiness. According to the Food and Agriculture Organization of the United Nations, between 31–55% of Agri-SMEs in Asia and the Pacific are either at a basic level of digital readiness or do not use digital technology at all. This issue stems from multiple gaps: gaps between business sectors that slow down technology adoption, gaps between developed and developing countries in terms of infrastructure and digital skills, and gaps between traditional businesses and modern Agri-tech companies. These disparities hinder Agri-SMEs from competing effectively.
In response to these challenges, several ASEAN countries have initiated measures to promote digital adoption among SMEs in the agriculture and food sectors over recent years. For example, Indonesia’s Telekomunikasi Indonesia—a major telecommunications and network provider with the government as a principal shareholder—launched MangoStar, a high-speed satellite internet service. This initiative aims to support SMEs, many of which operate in agriculture and food, by providing internet access in rural areas where wired or fiber-optic networks are unavailable.
Malaysia introduced the eBerkat program, operated by the Malaysia Digital Economy Corporation (MDEC). It is a comprehensive financial services platform designed to assist micro-SMEs that lack access to funding, enabling them to develop digital innovations more easily. In Singapore, the government launched the SMEs Go Digital initiative to encourage SMEs to adopt digital technologies. One of its services, CTO-as-a-Service, helps entrepreneurs assess their readiness and systematically plan their digital transformation, while also connecting them with experts and solutions tailored to their businesses. Thailand has employed financial mechanisms to support agricultural SMEs, including subsidies for adopting business management software, enabling these enterprises to enhance their operations through technology.
The agriculture and food sector is central to ASEAN’s food security, yet the digital transition of SMEs in this sector faces major challenges. The problem is not merely the lack of technology, but also structural inequalities in infrastructure and digital skills among entrepreneurs and farmers. Driving sustainable growth requires a comprehensive approach—integrating government policies across agriculture, trade, and technology; providing technical support to build skills; fostering collaborative networks for knowledge exchange; and connecting markets through digital platforms to reduce intermediaries and ensure fair income distribution. Digital technology is not just about having new tools—it is about building an ecosystem conducive to growth, which is the key to long-term economic stability in the region.
Author:
Ms. Natjaree Petruang
Researcher
International Institute for Trade and Development (Public Organization)
www.itd.or.th
Publication: Bangkok BIZ Newspaper
Section: First Section/World Beat
Volume: 38 Issue: 12996
Date: Wednesday, Sep. 24, 2025
Page: 8 (bottom-left)
Column: “Asean Insight”
