ID :
358889
Tue, 03/03/2015 - 10:15
Auther :

Mid-Market Enterprises Are Key To Dynamic Economy In Asia, Says HSBC

KUALA LUMPUR, March 3 (Bernama) -- Middle-market enterprises (MMEs) or those with an annual turnover between US$50 million to US$500 million (US$1=RM3.6280), are now key to a prosperous and dynamic economy in Asia. According to a new report by HSBC, they brought new innovations and products to the market and compete with large incumbents, forcing them to raise their game. And now many MMEs are looking to expand beyond their domestic markets due to their part in the global supply chain and due to advances in technology, said Head of Middle Market Enterprises for HSBC Asia Pacific, Tim Evans. "They too can now benefit from cross-border activity that was previously the preserve of multi-national corporations (MNCs)," he added. According to Evans, the role of MMEs can no longer be ignored due to their direct and indirect contribution to growth, employment and competition. The report said the structure of MMEs varies from one country to another, as less developed economies tend to be dominated by primary activities such as agriculture and mining. Those in low to middle income countries such as China and India, tend to undertake a large amount of secondary, typically manufacturing activity, while developed ones such as Singapore and Hong Kong are increasingly dominated by service industries. HSBC said MMEs directly accounted for between 10 per cent and 17 per cent of gross value added (GVA) across the 15 countries examined in the report. MMEs in China directly contribute US$1 trillion to GVA or 15.2 per cent of national gross domestic product (GDP), while Indian MMEs contribute almost US$192 billion or 13.3 per cent. Singapore and Hong Kong saw MMEs contributing US$39 billion (13.2 per cent) and US$34 billion (14.5 per cent) respectively to the GDP. -- BERNAMA

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