ASEAN MSMEs Internationalization Policy Harmonization in New Normal Era

The COVID-19 pandemic has had an impact on the global economy, including the ASEAN economy. It has added to the burden on the government to prevent the spread of the virus and restore economic conditions. MSMEs, as one of the backbones of ASEAN economies, are also feeling the impact of the COVID-19 pandemic. In ASEAN, the MSME sector, which tends to be dominated by micro-enterprises, accounts for around 85–99% of the business entities affected by the COVID-19 pandemic. This study's aim is to provide policy recommendations that should be carried out to internationalize MSMEs in ASEAN that can compete in the new normal era. This study used literature review and survey method for MSMEs throughout ASEAN. This research shows the importance of production networks as well as trade integration. Both of these have played an important role in driving regional growth, developing trade connectivity, and the important role of technology adoption to minimize the impact of the pandemic. Several priorities are proposed for ASEAN members; (1) to maintain the continuity of the supply chain, especially for important goods, ASEAN will need a health certificate, which is projected to become part of the quality standard in the ASEAN SME Policy index, (2) to address the manifold digital gaps that digitalization entails, and (3) to enhance the role of the private sector and other stakeholders, including the role of higher education in promoting confidence in markets, introducing new business models and opportunities, and their role in assisting post-pandemic recovery.