CEBU, Philippines – Member economies of the Asia-Pacific Economic Cooperation are urged to help small and medium enterprises (SME) join in regional trade.
In a statement, the Philippines' Department of Trade and Industry (DTI) quoted its assistant secretary, Rafaelita Aldaba, as saying: "Apec has the opportunity to realize the integration of SMEs in the global value chain particularly in the automotive industry. SMEs, which comprise the majority of the auto industry players, can take advantage of the region's very dense production network in auto components, parts and electronics."
During the Apec Automotive Dialogue in Cebu City, Aldaba shared some trends in the auto sector such as the rising importance of alternative energy cars and the focus on developing the next-generation or driverless cars in the future.
Data show the cost of electronic parts as percentage of total vehicle cost is seen to rise to 40% in 2015 from 20% in 2004.
Aldaba said supply chain operators have the role to create a facilitative trading environment, transparent market information and supportive national policies which should be aligned to regional cooperation goals.
Early this year, the Philippines started its Comprehensive Automotive Resurgence Strategy Program (Cars) that aims to make the country as a regional car manufacturing hub.
Aldaba said: "For us to participate in global value chains is to address constraints on SME competitiveness and productivity; to think beyond simply exporting and to strengthen capacity for innovation. This is one area where regional cooperation could also play a role.
DTI said over 130 government and private sector representatives from 12 member economies participated in the dialogue.
The dialogue was aimed to allow Apec and senior industry representatives cooperate in creating strategies for the development of the region's automotive industry.