SME Responses to Climate Change in Southeast Asia

EXECUTIVE SUMMARY

• Micro-, small- and medium-sized enterprises (SMEs) account for approximately 97 percent of all active business entities within the ASEAN region. They are an important contributor to both emissions generation and future reduction.

• A recent large-scale, multi-country quantitative assessment was undertaken into how SMEs are dealing with climate change in Indonesia, Malaysia, the Philippines, Singapore and Vietnam. Most respondents reported a high level of concern about climate change.

• Over 90 percent of firms are currently undertaking measures to reduce emissions, albeit that they are typically simple steps such as reducing air conditioning and electricity, recycling or installing low-energy lighting.

• Common intentions to deal with future extreme weather events include reducing emissions, developing a disaster plan, or reviewing business insurance policies.

• Major obstacles to dealing with climate issues are firstly, a lack of knowledge and secondly, insufficient funds. Governments are the preferred source of information, followed by business associations/ chambers, friends and family. Social media, YouTube and websites are overwhelmingly the dissemination modes of choice. There were significant variations in these patterns from one reporting country to another.

• Policymakers can help SMEs adjust to climate change by: encouraging them to adopt simple emission reduction measures; providing training and financial support; ensuring appropriate online delivery of advisory and assistance measures; and localizing responses to meet the needs of SMEs which are specific to different ASEAN member states.

Michael T. Schaper is Visiting Senior Fellow at the ISEAS – Yusof Ishak Institute, Singapore, and an Adjunct Professor with the John Curtin Institute of Public Policy, Curtin University, Western Australia.