Source: Asia Development Bank
MSMEs are looking to the government for support in several key areas, including business subsidies, tax relief, business development services, improved access to public procurement, and workforce skills development. Respondents also highlighted the need for various forms of financial assistance, such as business restructuring funds, simplified loan procedures, trade finance, and supply chain finance, along with concessional lending schemes. Notably, demand for concessional loans and credit guarantees was higher among women-led MSMEs compared to those led by men.
In contrast, there was relatively low demand for government support in business digitalization and digital financial services. Following the coronavirus disease (COVID-19) pandemic, only a small fraction of MSMEs entered the e-commerce space. This limited interest in digital tools can be attributed to several factors: low levels of financial and business literacy, limited awareness of available digital products, poor internet connectivity, and concerns about security and fraud.