Tag: SME

With the motto “unlocking what’s next” in marketing, The Next Practice, a global marketing communications company, recently collaborated with Ant International to demonstrate how sustainability marketing can become integral to activating a brand’s purpose.

In an exclusive interview with MARKETECH APAC, The Next Practice shared insights into this collaboration. During the Singapore Fintech Festival 2024, Ant International showcased its commitment to sustainability and digital innovation through an immersive augmented reality (AR) activation focused on eco-tourism and MSME support. This initiative not only emphasised sustainability but also highlighted its importance as a driver of long-term economic and social value. 

“Sustainable tourism holds immense potential to serve as a catalyst for environmental conservation, social progress, and economic development. Through this AR interactive travel experience, we aim to showcase how eco-tourism, supported by digital solutions and financing, can create local jobs, preserve cultural heritage, and protect natural ecosystems. By merging digital technology with purpose, we’re inspiring a new wave of travel that contributes to shared prosperity and sustainability,” said Carrie Suen, vice president and global head of international affairs and sustainability strategies at Ant International.

When discussing sustainability in the marketing context, many brands mistakenly confine it to corporate responsibility initiatives, ESG reporting, and short-term campaigns. Traditionally, marketing has been a powerful tool for driving commercial growth by influencing consumer behaviour. With increasing awareness of sustainability, sustainability marketing has emerged as a new driver for fostering conscious consumption that rewards purpose-driven companies. True sustainability involves embedding sustainable practices into a company’s business model, ensuring that the business, stakeholders, and customers thrive together in perpetuity.

Sustainability marketing: Turning awareness into action

Bev Ho, head of sustainability marketing at The Next Practice, explained the transformative power of immersive experiences through gamification in creating impactful sustainability campaigns. “Gamified elements turned passive awareness into active participation, enabling participants to connect their actions—like supporting social development and environmental projects—with tangible impacts on sustainability,” she said.

In this activation, Ant International invited participants to immerse themselves in an AR experience by selecting avatars and exploring Sumbawa, Indonesia. Activities such as whale shark conservation and visiting local bee farms allowed participants to see firsthand how sustainable practices create positive change. These engaging, hands-on experiences underscored the importance of integrating sustainability into daily actions and highlighted the critical role of community-driven efforts in fostering long-term environmental and social progress.

Uplifting smaller communities

Sustainability is not only about environmental conservation; it is also about empowering smaller communities to drive social and economic development. Ant International’s activation highlighted the vital role MSMEs play in fostering sustainable development.

“According to data from the United Nations, MSMEs represent 90% of businesses, 60 to 70% of employment and 50% of GDP worldwide. They are local heroes that can drive social, economic, and sustainable progress. By enabling game participants to support and empower MSMEs with solutions such as digital payments and green financing for renewable energy, everyday consumers can understand how they can contribute to greater sustainable development in small but meaningful ways. The immersive experience is more than just a game—it’s a way for people to realise that their choices can lead to real change,” Carrie explained.

Addressing the gap through technology

One of the most significant challenges brands face is bridging the gap between sustainability awareness and motivating real-world action. Ant’s AR experience tackled this issue by leveraging technology to create immersive, interactive experiences that allowed participants to visualise potential real-life impacts.

Bev added, “The gamification approach makes abstract sustainability concepts tangible, motivating participants to take actionable steps through relatable examples and real-time engagement. The use of ‘phygital’ – a combination of physical and digital – engagement transformed complex sustainability concepts into potential realities. This approach enabled participants to see the immediate impact of their actions, inspiring them to contribute to a sustainable future in their daily lives.

Lessons for other brands

Ant International’s campaign offers invaluable insights for brands aiming to elevate their sustainability initiatives. “Brands can learn from this campaign by leveraging phygital experiences and community-driven narratives to make sustainability engaging and impactful. By utilising digital tools and showcasing local, relatable heroes, they can transform abstract goals into tangible, measurable outcomes,” Bev elaborated.

Chris Foster, CEO of The Next Practice, emphasised, “At the core of sustainability marketing lies the belief that change begins with engagement. This AR experience seamlessly bridges the physical and digital worlds, immersing people in a vision of a better future and their ability to contribute. By fostering connection and motivating action, we empower individuals to be part of the solution. This represents the future of sustainability—where inspiration drives meaningful, collective change.”

Sustainability marketing is not a fad; it is a marketing paradigm for long-term brand success. Today’s consumers demand transparency, environmental stewardship, and meaningful action. By leveraging tools like augmented reality and digital innovations, brands can craft immersive narratives that deeply resonate with audiences.

Engaging with smaller communities and amplifying their sustainable practices not only brings authentic stories to the forefront but also strengthens the social and economic fabric of these regions. Embracing sustainability marketing positions brands as leaders in driving positive change, building trust and loyalty in an increasingly sustainability-conscious marketplace.

Indonesia –Indonesia’s Ministry of Trade, in collaboration with Google Indonesia, has introduced the ‘Gemini Academy,’ an initiative to help small and medium-sized enterprises (SMEs) integrate artificial intelligence (AI) into their operations and improve competitiveness.

The Gemini Academy will support both export and non-export local SMEs, with the goal of fostering innovation and helping businesses expand into international markets, Business Times reported.

The program will offer training in three categories—Potential Exporter SME, Basic Export SME, and Advanced Export SME—aimed at improving business processes and market expansion.

Minister Budi Santoso stated that the academy is expected to help SMEs streamline operations, lower costs, and enhance their competitiveness.

“By integrating AI into their business strategies, they will gain valuable insights into market trends and consumer preferences, which will enable them to refine their product offerings and improve marketing efforts,” the minister said in a statement, as quoted by Business Times.

Alongside SME-focused training, Google Indonesia will also provide 500 scholarships for Google Career Certificates, giving civil servants at the ministry access to AI-related courses.

Putri Alam, director of government affairs and public policy at Google Indonesia, said, “Indonesia is the first country globally to offer the Gemini Academy training program for SMEs, and the Ministry of Trade is our first government partner in Indonesia.”

She further noted that Gemini, an AI chatbot aimed at supporting creativity and productivity, can be accessed through the Google Play Store, App Store, or its official website.

Small and medium enterprises (SMEs) have long been the driving force behind economic growth, especially in the Asia-Pacific (APAC) region, where they dominate the business landscape. Yet their strength in number is not the only thing they need to thrive. 

Complexities often loom over SME operations, hindering further growth. For one, the business-to-business (B2B) and business-to-business-to-consumer (B2B2C) markets can be an elaborate web difficult to traverse.

FedEx, a transportation, e-commerce, and business services provider, has made it its mission to empower SMEs through its operations. 

In MARKETECH APAC’s latest What’s NEXT in Marketing interview, Salil Chari, FedEx’s senior vice president of marketing and customer experience in Asia Pacific, details how the company is transforming its trade and SMEs alongside it.

Supercharging the ‘backbone of economic growth’

As an advocate of the small business community, FedEx recognises how it is the backbone of economic growth in APAC, making it a priority in its mission.

“With SMEs accounting for 90% of businesses, 50% of employment, and 40% of national GDP in emerging economies, supporting their growth is not just a focus for us—it’s a priority,” Salil said.

To support the sector, FedEx leads the transformation within its network to power global trade with a data-driven approach while leveraging technology. It aims to make its network efficient, streamlining its shipping process and allowing real-time tracking. FedEx also allows for flexibility in deliveries, adapting to changing demands. Additionally, it leverages advanced and data-driven insights into its platform, ‘FedEx Surround® and SenseAware ID, which ensures transparency for businesses on their shipments.

“By optimising operations and creating a resilient infrastructure, we’re reshaping how

we work to deliver exceptional customer experiences. Our vision is clear: to make supply chains smarter for everyone,” Salil said.

Beyond logistics, FedEx has also tapped into funding with its FedEx Small Business Grant Program, which is tailored for innovative entrepreneurs who want to grow their businesses.

“Additionally, resources like the FedEx Small Business Center and FedEx Business Insights provide expert guidance with practical tips, and insights to SMEs looking to navigate market complexities, and business challenges,” Salil said.

Navigating B2B, B2BC markets

SMEs seeking expansion would find significant opportunities in tapping global B2B and B2B2C markets, Salil said.

“With B2B commerce projected to surpass $20.9 trillion by 2027 and global trade growing at 4% annually, SMEs are well-positioned to leverage these trends. FedEx supports them with the tools, expertise, and technology to navigate global markets confidently,” he explained.

Expanding beyond local borders is undoubtedly complex, as SMEs must consider custom regulations, logistics, and costs. However, Salil shares how FedEx can simplify these concerns.

“In B2B markets, where high-volume shipments and reliability are critical, FedEx ensures timely, efficient deliveries through its global network spanning over 220 countries and territories,” Salil said.

“Whereas in B2B2C markets, speed and flexibility are key to meeting customer expectations. FedEx® International Connect Plus (FICP) offers cost-effective shipping between APAC, the U.S., and Europe within one to three business days, helping SMEs compete in a fast-paced e-commerce environment,” he added.

FedEx also enhances its customers’ experiences by allowing them to personalise and customise delivery times and locations depending on their needs.

“Consumers can manage their deliveries directly through platforms like WhatsApp or WeChat, offering flexibility and ease. By combining a robust global network, advanced logistics solutions, and personalised delivery options, FedEx enables SMEs to build trust, strengthen relationships, and succeed in today’s competitive global marketplace,” Salil said.

Strengthening digital-first strategy

At the centre of FedEx’s strategy to streamline and optimise its operations to empower SMEs is digital transformation. Salil shares how SMEs, particularly in Asia, are investing more in technologies that improve their performance through digital solutions.

“Digital transformation can be a game changer for small businesses. While startups are often tech-savvy, smaller firms sometimes face challenges in navigating the complexity and cost of tech investments. However, technology is a great enabler, offering these businesses the tools to generate value quickly,” Salil said.

“We’re evolving into a digitally led company, leveraging the value of data alongside our extensive physical network. This dual focus allows us to help SMEs transform their operations by offering digital tools and platforms that are easy to integrate into their existing systems,” he added.

Salil also shared how FedEx was able to deliver real-time intelligence to its customers through investments in artificial intelligence and machine learning. These tools also help businesses across all phases of their operations.

“Digital transformation doesn’t have to be complex. By collaborating with logistics experts like FedEx, SMEs can access expertise and digital solutions to simplify their operations, enhance performance, and unlock growth opportunities in international markets. It’s about helping businesses build a bridge between the physical and digital, driving sustainable success and enabling them to thrive in an increasingly competitive landscape,” Salil said.

Through its commitment to empowering SMEs, FedEx has not only optimised its network but extended its impact to the businesses it works with. While FedEx strengthens its logistics, SMEs are also able to tap into digital strategies, unlocking opportunities for further growth.

Manila, Philippines – The International Finance Corporation (IFC), a global development institution and member of the World Bank Group, has announced its investment of up to $130 million to Asialink Finance Corporation. The move aims to boost lending to micro, small and medium-sized enterprises (MSMEs) in the Philippines, advancing financial inclusion.

The investment, directed towards small business financing, is set to prioritise women-owned or led MSMEs with 60% of loan proceeds specifically designated for the sector.

With the funding, Asialink strengthens its strategy towards financial inclusion, serving MSMEs and individuals without access to bank financing.

Additionally, IFC will help Asialink implement a framework for environmental and social management system and finance principles aligned with international standards.

“We hope to demonstrate the viability of lending to this sector and encourage other players to develop solutions that cater to MSMEs,” Jane Yuan Xu, acting country manager for IFC Philippines, said.

“Because ultimately, we are not just funding companies, we are creating jobs at the grassroots level. Every loan to an MSME can mean five, ten or twenty new jobs in local communities. And that’s what drives an economy forward,” Xu added.

“We are very grateful for IFC’s support, which will allow us to expand our lending to more MSMEs, particularly in underserved regions of the country and those that have historically been excluded from the formal financial sector,” Robert B. Jordan Jr., chief executive officer of Asialink Finance Corporation Group of Companies, commented.

“MSMEs are the backbone of the Philippine economy, but in many parts of the country it’s still a huge struggle to access the financing they need to grow and thrive. With this investment, we will help change that,” Jordan added.

Singapore – Funding Societies, a digital finance platform, has secured a US$25 million investment from Cool Japan Fund (CJF), Japan’s sovereign wealth fund. The investment will help the company support SMEs across Southeast Asia (SEA), particularly in Singapore, Indonesia, Malaysia, Thailand, and Vietnam.

To enhance its business in financing SMEs, Funding Societies will funnel the investment to help businesses receive their payments faster. It will also use artificial intelligence to streamline lending origination processes.

Additionally, Funding Societies and CJF are forging a partnership to financially support Japanese companies in SEA. Aimed at boosting commercial relations for Japanese SMEs across the region and expanding their businesses, it will consequently promote Japanese lifestyle and culture.

The investment marks CJF’s first funding into a fintech company in SEA.

“We are excited to be backing Funding Societies through this investment. Their track record of supporting SMEs in Southeast Asia well places them to help Japanese companies overcome challenges when entering new overseas markets – particularly in this region,” Kenichi Kawasaki, president and chief executive officer of Cool Japan Fund, said.

“With the shift of interest from Japanese firms steering towards Southeast Asia, we believe our partnership with Funding Societies through this investment will grow the overseas demand of Japanese products and services, in turn, benefitting Japan’s economy as well as the local SMEs doing business with Japanese companies,” Kawasaki added.

Kelvin Teo, co-founder and group chief executive officer of Funding Societies | Modalku, said, “We’re honored for the commitment from Cool Japan to collaborate and support Japanese companies expanding overseas. Many businesses we serve in Southeast Asia are Japanese firms, suppliers and/ or customers to them. Together with CJF, we intend to further strengthen these ties.”

Kuala Lumpur, Malaysia – PayMate, a B2B payments platform, has launched its Business Payments app in Malaysia to encourage better financial management and business growth for small and medium-sized enterprises (SMEs) in the country.

The app provides SMEs with an easy-to-use platform for their B2B payments with suppliers, helping them navigate challenges. SMEs are often hounded by issues such as delayed payments and limited access to affordable credit, which leads to disruptions.

Through the PayMate Business Payments App, business owners can handle payments using commercial and retail credit cards efficiently. Additionally, the app offers up to 55 days of interest-free credit on cards.

While providing efficiency and flexibility in handling payments, the app also provides security in transactions through a PCI DSS-certified platform. It ensures that business owners can drive business growth and financial stability.

The launch is part of PayMate’s collaboration with Selangor Information Technology & Digital Economy Corporation (SIDEC), a subsidiary of Invest Selangor Berhad. The partnership aims to contribute to SME development in Malaysia. Through the app, PayMate helps boost SIDEC’s efforts to improve SME financial management while driving local economic growth.

Rakesh Khanna, chief commercial officer at PayMate, commented, “We are proud to launch our new business payments app in Malaysia, which is thoughtfully designed to meet the needs of SMEs by offering features that enhance working capital optimisation and streamline B2B payments. Recognising Malaysia as a vital market, we are committed to supporting its SMEs on their growth journey with innovative, secure, and reliable payment solutions that enable them to thrive in an increasingly digital landscape.”

“At PayMate, we recognise the ongoing challenges faced by Malaysian SMEs in managing their cash flow. Traditional financial processes can be manual and time-consuming, often hindering business growth. Our new Business Payments App addresses these by optimising working capital and streamlining B2B payments, empowering businesses to take full control of their finances. With features such as unlimited transfers and the flexibility to make payments via credit cards, SMEs can seize opportunities and manage their supplier payments with greater agility,” Amirreza Sawal, general manager of PayMate Asia Pacific, said.

Jakarta, Indonesia – Popular Chinese e-commerce app Temu has been blocked from entering from Indonesia, according to a statement from Fiki Satari, Special Staff to the Minister for Creative Economy Empowerment at the Ministry–and confirmed by the country’s Ministry of Cooperatives and SMEs.

According to the ministry, should Temu enter the country, it will result in jeopardising sustainability of MSME players in the country.

“If Temu enters, it will greatly threaten local MSMEs. This application from China allows direct transactions between factories in China and consumers in Indonesia, which has the potential to kill small businesses here,” Fiki said in a statement.

Fiki explained that Temu’s business model enables goods to be sold directly from factories to consumers, eliminating the need for intermediaries like sellers, resellers, dropshippers, or affiliates. Furthermore, the platform offers subsidies, which significantly lowers product prices.

“They have entered the US and European markets, and are now expanding into Southeast Asia, including Thailand and Malaysia. Therefore, we must remain vigilant and ensure Temu does not enter Indonesia,” he added.

It is worth noting that since September 2022, Temu has tried to register its trademark in Indonesia three times. On July 22, 2024, they again applied for registration at the Directorate General of Intellectual Property Rights (DJKI), Ministry of Law and Human Rights.

“Temu App has tried to register trademarks, designs, and others with the DJKI. However, they have not been able to enter because there are already companies from Indonesia that have similar names and business categories. Even so, we must remain vigilant and continue to monitor,” Fiki explained.

Fiki hopes that various relevant agencies, including the Ministry of Law and Human Rights, the Ministry of Trade, the Ministry of Communication and Information, along with other stakeholders, will collaborate to prevent the entry of the Temu marketplace into Indonesia.

Kuala Lumpur, Malaysia – Boost Bank has announced the upcoming launch of its SME financing services in early October. This underscores the bank’s commitment in driving financial empowerment and inclusivity for both SMEs and MSMEs across the nation.

The financing offerings include two key financial products: ‘Term Loan’ and ‘Revolving Credit.’ Its SME financing solutions offer a seamless application process with minimal documentation, no hidden fees, and loan amounts from RM50,000. With fast loan processing, businesses can receive access to capital when it is needed most. These loans are also designed to provide flexible financial solutions that cater to the diverse needs of Malaysian SMEs to grow and thrive.

The ‘Term Loan’ facility offers a tenure of up to 36 months, with no early settlement fees—allowing businesses to effectively manage their cash flow. Flexible repayment options ensure that businesses can repay early, without any penalty, whenever it suits their business cycle. 

Meanwhile, the ‘Revolving Credit’ facility provides swift access to funds, empowering businesses to quickly respond to opportunities and challenges with financial confidence. This product is designed to adapt to the unique financial needs of each SME, rather than a one-size-fits-all approach.

Fozia Amanulla, CEO of Boost Bank, said, “At Boost Bank, we are on a mission to transform financial inclusion and spark lasting impact for Malaysia’s underserved communities. By harnessing cutting-edge digital innovation and our dynamic fintech ecosystem, we’re not just offering financial products—we’re building a platform that empowers SMEs to break through barriers and unlock their true potential. Our SME Financing solutions are designed to be swift, flexible, and accessible, giving small businesses the crucial boost they need to thrive and fuel their success across the nation.”

Meanwhile, Sheyantha Abeykoon, group CEO of Boost, commented, “As we continue to build the foundation for a fully integrated digital financial ecosystem, the launch of our SME Financing solutions marks a pivotal moment in our journey. SMEs are not just the backbone of Malaysia’s economy; they are the engine of innovation, growth, and resilience.”

He added, “At Boost, we believe in empowering businesses through digital innovation, and this initiative is a testament to our ongoing commitment to fostering financial inclusivity and sustainable growth for the underserved sectors of the economy. This is not just about providing loans, but about partnering with SMEs to fuel their long-term success and contribute to Malaysia’s broader economic transformation.”

Businesses looking to explore Boost Bank’s SME Financing solutions are encouraged to register their interest here. Boost Bank will also assess applications based on specific criteria, and eligible customers will be contacted directly to discuss financing opportunities tailored to their needs. 

Kuala Lumpur, Malaysia – PayMate, a business-to-business (B2B) payment solutions provider, has forged a strategic partnership with De’Xandra, a Malaysian perfume brand. The partnership aims to transform B2B payment processes and boost the growth of Malaysian small and medium-sized enterprises (SMEs).

De’Xandra will use PayMate’s platform to streamline its payment management. It will allow the perfume brand to collect payments from its over 6000 distributors while ensuring timely and reliable payments to its suppliers. 

The partnership also contributes to PayMate as it strengthens its presence in Malaysia’s SME sector. 

PayMate’s platform allows SMEs in Malaysia to use commercial cards with an interest-free period of up to 55 days. This offer makes their B2B payments efficient and secure, eliminating operational difficulties.

“At PayMate, we believe that the backbone of Malaysia’s economy lies in its SMEs, and our mission is to empower these businesses with the tools they need to thrive. We are here to support every small business in Malaysia providing them with innovative payment solutions so that they may overcome working capital challenges, grow confidently and drive the nation’s prosperity,” Amirreza Sawal, general manager of PayMate Asia Pacific, said.

Ernayanee Nur, chairman of Blyon Group Berhad and Oshien2u SDN BHD, commented, “Collaborating with PayMate marks a new era for De’Xandra. With their payment solutions and support for accessing crucial capital, we are confident that our operational efficiency will significantly improve enabling us to better serve our customers and expand our footprint across Malaysia.”

Manila, Philippines – Around 51% of women-led SMEs and 56% of microbusinesses in the Philippines saw revenue growth after they started accepting digital payments, new data from Visa recently revealed.

Considering that SMEs are important to the economy and that women make up more than half of the population in Asia, utilising women’s economic potential might boost the Asia Pacific region’s GDP by $89 billion a year, including the Philippines. 

According to the study, around 72% of the SMEs in the Philippines surveyed said that running their own business has gotten easier. Digital wallets—GCash in particular—dominate as the primary means of digital payment for SMEs, particularly those led by women (61%) according to a Philippine poll. Millions of unbanked Filipinos now have access to the advantages of having a payment card because of Visa’s partnership with GCash for the launch of the new GCash Card.

Out of all the companies that have begun to take digital payments, those that accept cards have seen the biggest gains in turnover (83%). Instantaneous transfers and cashless transactions are made possible by digital payments, improving the shopping experience. Visa helps small and medium-sized businesses (SMEs) in the Philippines by providing broad acceptance and strong security against fraud for both customers and merchants. 

The Philippines has over a million micro, small, and medium-sized enterprises (MSMEs), making them important for the nation’s economic development. 99.5% of the businesses in the Philippines are MSMEs, according to data from the Department of Commerce and Industry. Almost 50% of these enterprises are involved in wholesale and retail commerce, which accounts for 65% of all jobs in the nation. 

Guaya Melgar, CEO and co-founder of Mochi, said, “My business has grown since I introduced digital payment methods. I appreciate the convenience, speed, and the ability to easily track payment records. It provides my customers with a convenient cashless payment option too. I hope to expand my business beyond the Philippines so enabling cross-border payments will help me grow my customer base.” 

Meanwhile, Jeff Navarro, Visa’s country manager for the Philippines, stated, “Small and medium-sized businesses are the driving force behind the thriving economy in the Philippines. Visa is proud to contribute to their growth by providing secure and convenient digital payment solutions. Visa is committed to continuously supporting the Philippine government’s financial inclusion and digitization goals, including empowering SMEs, the cornerstone of the economy, by introducing innovative financial and payment solutions so they can build on this foundation to grow their business.”

Recently, Visa released an online toolbox for SMEs to help travel-related businesses take full advantage of contactless payments. Visa launched the SME Accelerator Program in the Philippines in 2023 with the goal of assisting partners and SMEs with competitive pricing, expedited onboarding, and comprehensive go-to-market support. The enhanced SME Accelerator programs will also concentrate on a broader range of collaborations with ecosystem players to assist smaller vendors and expedite the implementation of solutions for SMEs.

To help women-owned and underrepresented SMEs in APEC countries like the Philippines gain faster access, the Visa Foundation has committed to donate $100 million over the course of five years. Approximately 29.6 million SMEs are from APEC economies, and 10.9 million of the nearly 67 million SMEs that Visa has addressed globally are led by women.