We have talked in the past about Internationalisation and why Asia could be a good choice. In this article, however, I want to share some tips on how to establish networks in Asia in 2025. I will also explain what SMEs in the UK and the European environment need to know when exploring the possibility of creating strategic collaborations with Asian companies.

1. Leverage Regional Cooperation and Integration through the ASEAN Economic Community (AEC)

The ASEAN Economic Community (AEC) provides an excellent platform for UK SMEs to access larger markets across Southeast Asia.

Established to promote economic integration, the AEC facilitates the free movement of goods, services, investment, skilled labour, and capital among ASEAN member states, including countries such as Indonesia, Thailand, and Malaysia.

For UK SMEs, the AEC offers an opportunity to integrate into global value chains, scale operations, and tap into regional supply chains.

The ASEAN Coordinating Committee on Micro, Small, and Medium Enterprises (ACCMSME) plays a key role in supporting SME development by promoting regional cooperation, networking platforms, and collaborative initiatives across member nations.

Explore business opportunities within the ASEAN region by engaging with industry events, trade missions, and initiatives such as the ASEAN Business Advisory Council.

>Enhance Linkages with Foreign Investors

Foreign investment is one of the key drivers of internationalisation for SMEs. According to the OECD-UNIDO report, fostering linkages between SMEs and multinational enterprises (MNEs) significantly enhances SME growth prospects. These partnerships bring not only capital but also advanced technologies, management expertise, and access to global networks.

By building strong relationships with foreign investors, UK SMEs can benefit from joint ventures, investment opportunities, and collaborative research. This enhances productivity and market reach, allowing SMEs to compete effectively on a global scale.

Action tip: Explore funding and investment opportunities through government initiatives, such as the UK Department for Business and Trade, which connects SMEs with international investors.

3. Maximise the “Global Value Chains (GVCs)”

Participating in Global Value Chains (GVCs) is crucial for enhancing SME productivity and gaining access to global markets. By specialising in specific parts of production, UK SMEs can integrate into international supply networks, improving operational efficiency and benefiting from global demand.

For example, sectors like manufacturing, technology, and agriculture in Asia are integrated into GVCs, offering UK SMEs a competitive edge in tapping into diverse international markets. While joining GVCs can present challenges—such as capacity constraints or limited access to finance—targeted support programmes can help overcome these barriers and unlock new business opportunities.

Action tip: Focus on building strategic partnerships within Asian industries, such as electronics or textiles, and explore opportunities through trade agreements like the UK-ASEAN Free Trade Agreement (a slightly updated version if compared to the 2022 version we published in previous posts).

4. Focus on Innovation and Competitiveness

In a fast-evolving global market, innovation is key to remaining competitive. UK SMEs that invest in research and development (R&D), adopt emerging technologies, and continuously improve their products and services are better positioned to meet international standards and consumer demands.

The ASEAN Strategic Action Plan for SME Development (SAP SMED) encourages SMEs to focus on innovation as a means to enhance resilience and competitiveness. By prioritising innovation, UK SMEs can differentiate themselves in crowded markets and better meet the needs of Asian consumers.

Action tip: Participate in regional innovation networks and explore funding for R&D projects through government and EU-backed initiatives that support SMEs looking to expand internationally.

5. Participate in Inclusive Business Models

Inclusive business models offer unique opportunities for SMEs to create sustainable growth while addressing the needs of low-income communities. The ASEAN Inclusive Business Awards showcase businesses that profit by solving social challenges, such as improving access to healthcare, education, or clean energy.

For UK SMEs, these inclusive business models provide a pathway to tap into underserved markets in Asia. By adopting similar practices, SMEs can build strong reputations, attract ethical consumers, and access new business opportunities in emerging markets.

Action tip: Consider adopting inclusive business strategies that benefit local communities and align with social impact objectives in markets such as Indonesia, the Philippines, or Vietnam.

6. Engage in Capacity Building and Training

Engaging in continuous learning and professional development is essential for UK SMEs aiming to expand into Asian markets. Capacity-building activities, such as trade and export training, can equip SME owners and employees with the skills needed to navigate the complexities of international business.

Training in areas such as cross-cultural communication, international regulations, and export procedures can boost confidence and enable SMEs.

Want to know more? Book a free consultation with me!