Japanese policies toward small and medium enterprises and its implications for the industrial development in ASEAN

Abstract

Rapid development of ASEAN industries and increasing role of samll and medium enterprises (SMEs) SMEs in the Japanese economy Definition of SMEs : a company capitalised at ¥100 million or less, or of 300 or less employees in mining, manufacturing, transportation, and construction industries a company capitalized at ¥10 million or less, or of 50 or less employees in retail or service business sector 99.1% of total 6.54 million business establishments 79.2% of the total 56.8 million work force 51.8 % of the total amount of manufatured products shipped MITI's SME policies: concept and MITI's position Contribute to the economy through unique flexibility and creativity but handicapped with insufficient information, financial capability and access to technological development Encourage and assist their self-help efforts to modernize their equipments, improve technology, rationalize management, and so on Small and Medium Enterprise Basic Law (1963) Small and Medium Enterprise Modernization Promotion Law (1963) Menu of SME policies (p.5 of the SME Agency, Outline) Major policy instruments financial assisttance preferential tax treatment consulting and guidance program promotion of small and medium subcontractors Implications for the industrial development in ASEAN