U.S. prods ASEAN to set up fund

U.S. prods ASEAN to set up fund

SINGAPORE (DPA): The U.S. government wants ASEAN members to put together a fund to help small and medium-sized enterprises fulfill their potential but it is not clear if the United States is prepared to take a stake, Ambassador Steven Green said in a report on Monday.

Green, the U.S. envoy to Singapore, has discussed his proposals with the governments of Singapore, Thailand, Indonesia and the Philippines as well as with the private sector.

The scheme would follow the lines of "a quasi-government, private-sector type program where the private sector manages the fund and the public sector makes available the credit facilities," Green told The Business Times.

The money would be primarily put up by regional governments with the possibility of some help from outside, he said, with the private sector also entitled to take an equity stake.

The fund would be managed for profit but "designed and dedicated to helping small and medium-size enterprises (SMEs) obtain working capital and achieve their growth potential.

The Association of Southeast Asian Nations (ASEAN) groups Singapore, Malaysia, Thailand, the Philippines, Indonesia, Brunei, Laos, Vietnam, Myanmar (Burma) and Cambodia.

Green said he received positive responses to an SME fund from the governments approached but believes "all the ASEAN countries need it."

"Indonesia is a classic example of how you need to get companies working capital and the people back to work," Green was quoted as saying. "An initiative like this in Indonesia is critical."

Green expressed confidence of support from several U.S. agencies, including the Small Business Administration, the Import-Export Bank and the Overseas Private Investment Corporation.