By: Matty Lin, General Manager, Southeast Asia, Global Business Solutions, TikTok

In today’s dynamic economic landscape, it has become increasingly essential for businesses of all sizes in ASEAN to leverage digital technology to succeed.

MSMEs (Micro, Small, and Medium enterprises) are the backbone of the global economy and play a vital role in ASEAN’s economic landscape, accounting for over 90% of the business sector, employing 67% of the workforce, and contributing more than 40% to the region's GDP (Gross Domestic Product). Access to digital platforms and innovative tools can empower MSMEs to enhance customer engagement, strengthen their storytelling, and achieve better business outcomes, underscoring the importance of a strategic approach for MSMEs in their digital initiatives.

More than 15 million businesses across Southeast Asia, the majority of which are home-grown businesses, are on TikTok. During this year's ASEAN Business and Investment Summit 2024 in Laos, under the theme of 'Agriculture to Digital,' MSME merchants from the region shared their experiences of digital transformation through TikTok Shop. Each merchant received tailored support programmes designed to meet the specific needs of their market, enabling traditional products such as food, clothing, and handmade products to gain wider visibility.

Over the past year, we have, and continue to, support MSMEs in the digital economy, through upskilling programmes, educational support and campaigns that promote local products.

In Indonesia, Tokopedia and ShopTokopedia launched a major joint initiative called 'Beli Lokal' (Buy Local) in December 2023. The campaign provided an exclusive platform for local products to be easily accessible by anyone across Indonesia. The campaign significantly boosted visibility for local sellers, resulting in an average 19x increase in transactions. Additionally, we partnered with Indonesia's Ministry of Tourism and Creative Economy to launch the TikTok Jalin Nusantara programme, comprising digital upskilling training and expanded internet connectivity, across 19 cities and rural villages. This was part of our commitment announced during the TikTok SEA Impact Forum 2023 to contribute to Indonesia's economy by reaching over 18,000 residents and 500 MSMEs in its pilot phase.

We have partnered with numerous government institutions in Malaysia to empower and digitalise MSMEs. As of September 2024, we trained more than 100,000 MSMEs through government partnerships, including MATRADE, FAMA, MEDAC, TEKUN Nasional, MINTRED, SDEC, MDEC, PUNB, SIDEC, KKDW, and more. We also launched #JOMLokal, which aims to bring increased awareness to the diverse Malaysian brands and products available on TikTok Shop.

Over in the Philippines, our Buy Local Shop Local campaign, which aims to spotlight MSMEs and homegrown brands and businesses in-app, has promoted over 1000 local sellers and over 330k local products. We've also run comprehensive masterclasses with the Department of Trade and Industry (DTI) to train MSMEs to use TikTok Shop to grow and scale their business.

In Thailand, we partnered with the Community Development Department (CDC) to onboard more than 1,500 merchants from the One Tambon One Product programme, allowing local products from across the Kingdom to shine in the online market place. We are also working with the Department of Business Development (DBD) to provide digital training to 7,000 MSMEs and assisting them in utilizing the TikTok Shop platform.

We've partnered with the Ministry of Agriculture and Rural Development in Vietnam to empower and train over 3,000 rural farmers from 30 provinces through the 'One Commune One Product' programme to showcase their regional specialties to a nationwide audience.

Additionally, we are expanding access to education and equipping youth with essential skills for the digital age. We are also partnering with the ASEAN Foundation to promote youth entrepreneurship and build supportive communities that drive regional growth.

Our mission to inspire creativity and bring joy has remained unchanged since we launched the platform in Southeast Asia seven years ago. Looking ahead, our focus will remain on creating a creative and safe community to strengthen local businesses, expanding access to digital skills education, and fostering entrepreneurship.