ASEAN Industrial Cooperation

Since the ASEAN Industrial Cooperation scheme was introduced in 1996, 146 applications were received, of which 90 have been approved. These approved AICO arrangements are expected to generate US$ 1.09 billion in intra-ASEAN trade transactions per year.  More than 90 percent of the participating companies is from the automotive sector, with a handful from the electronics sector.

The AICO Scheme has been well received by the private sector and in response to its request, ASEAN has agreed to extend the automatic waiver of the 30 percent national equity requirement for another year, until 31 December 2002.

AICO Application Status (summary as of 8 April 2002)

Summary of AICO Application Approval (as of 8 April 2002)

      SMALL AND MEDIUM ENTERPRISES

Small and medium enterprises remain the economic backbone of the region.  They account for 90 per cent of all manufacturing firms in ASEAN.  SMEs are an important source of domestic employment and income generation, particularly for women and those with limited capital.  The ASEAN SME Agencies Working Group continues to promote joint ventures and collaborative linkages between SMEs and large enterprises, including transnational corporations, through matchmaking workshops, trade fairs, and inter-firm networking.

A compilation of ASEAN SME policies and best practices has been completed and made available on the Internet.  Measures to build up SME capacity and entrepreneurship have been undertaken, including training in basic industrial production techniques.  The Working Group is being guided by a Regional Action Plan for the ASEAN SME Development Decade 2002-2012 that covers access to markets, finance, information technology, technology sharing, and human resource capacity building.