Filipino micro, small, and medium enterprises (MSMEs) could gain wider access to financing and regional markets as ASEAN moves toward deeper digital integration, but barriers to formalization and differing regulations must first be addressed, according to Mynt, operator of GCash.
Mynt Chief Strategy Officer Rowie Zamora said the ASEAN Digital Economy Framework Agreement (DEFA) could unlock significant opportunities for Philippine MSMEs, which account for more than 99 percent of businesses but remain underserved in financing, technology, and other capabilities.
“There is really a mismatch there,” Zamora said at the ASEAN Business Media Exchange on Monday. “The focus that DEFA provides is bringing attention to this firepower engine of the economy.”
ASEAN concluded negotiations on DEFA in May, paving the way for the signing of the region’s first comprehensive digital economy agreement in November. The pact is designed to reduce barriers to cross-border digital trade, improve interoperability, and expand MSME participation in the digital economy.
Zamora said one of the biggest constraints facing smaller businesses is access to capital, particularly for entrepreneurs without formal financial records or conventional credit histories.
Alternative credit scoring could help address the gap by allowing digital activity to establish credit profiles for entrepreneurs who lack traditional documentation.
Through GCash’s lending products, Zamora said the platform has provided financing to about two million Filipino MSMEs over the past one-and-a-half to two years, with loans ranging from below P350,000 to as much as P2 million.
Beyond financing, Zamora said harmonizing compliance requirements across ASEAN would reduce the friction that keeps smaller businesses from entering regional markets.
“If I want to do business or cross-border transactions in Singapore, in Thailand, and they have a completely different set of requirements, of course that will be friction for me,” she said.
DEFA specifically covers digital trade, cross-border e-commerce, digital payments, e-invoicing, and digital identity, areas that could make regional transactions more seamless for smaller businesses.
Digital platforms could also narrow the urban-rural opportunity gap by allowing entrepreneurs without physical storefronts to reach customers, transact digitally, and access financial services.
“Digital is such a huge tool to leap from,” Zamora said, adding that GCash’s “finance for all” vision extends beyond consumers to micro merchants.
