ASEAN, UN Women Encourage Private Sector To Support Women Led-MSME In COVID-19 recovery

Financial independence has become a primary need for women. Why should it not be? Financial freedom gives women autonomy and makes them vital stakeholders in economic growth. On similar lines, the Secretary-General of ASEAN, Dato Lim Jock Hoi at the Association of Southeast Asian Nations (ASEAN) Women Leaders’ summit, emphasised "The transformative role of women as agents of inclusive economic growth. More than a moral imperative, bridging the gender gap makes economic sense.”

ASEAN and UN Women organised the summit. Summit’s major objective was to encourage the private sector to support women-owned businesses in COVID-19 recovery. The summit discussed the ASEAN Policy Brief that provides actionable guidance and recommendations for ASEAN policymakers to advance gender-responsive business conduct in the private sector and recovery from the COVID-19 recession through full engagement of women as leaders, workers, and entrepreneurs.

COVID-19-induced lockdown and the ongoing recession have disproportionately impacted women in terms of unemployment, income loss, business failure, increased risk of domestic violence, and increased unpaid domestic and care responsibilities. The brief suggests that 30 to 40 percent of women in the Asia Pacific report sexual harassment at their workplace, and 52 percent of women in Southeast Asia are in vulnerable employment. Prior to the pandemic, women in the Asia-Pacific region did on average four times more unpaid care work than men and up to 11 times more in some countries. Pre-pandemic, only 9 percent of venture capital and private equity funding in East Asia went to women-led firms limiting the markets. The finance gap for women-led Micro, Small, and Medium Enterprises (MSMEs) in East Asia totals USD 1.3 trillion.

ASEAN Summit on Women led MSME

COVID-19 has only enhanced these numbers and negatively impacted small and medium enterprises (SMEs) in Asia-Pacific, including ASEAN, especially women-owned SMEs. The policy brief highlights these issues and calls for urgency to accelerate Women’s Economic Empowerment (WEE) and the role of ASEAN in the implementation of the Women’s Empowerment Principles (WEPs). The policy brief appeals for more efforts to make workplaces safe, respectful, and dignified for women and strategies to encourage women-led MSMEs. 

This ASEAN Policy Action Brief is an evidence-based and data-driven report reflecting strategies that are relevant for each ASEAN Member State and their policymakers and regulators and for ASEAN as a regional body. The policy brief includes Women’s Empowerment Principles, a global framework that offers an opportunity to both demonstrate and stimulate private sector action. The plan root in advancing workplace and marketplace gender equality, focusing on gender metrics for making better policies at the regional and national levels. 

Sarah Knibbs, Regional Director of the UN Women Regional Office for Asia and the Pacific added, “We recognise the strong commitment of businesses to adopt and implement the Women’s Empowerment Principles as well as the ASEAN’s commitment to promoting women’s economic empowerment. Combining these efforts can provide a key pathway for COVID-19 recovery.”

The action brief urges ASEAN and its member states to take three priority steps to empower women business leaders and workers:

Affirming high-level commitments of the governments and private sector companies in the ASEAN region to adopt national policy frameworks. Advancing gender quality in the workplace and marketplace through promotion and/or adoption of policies for equal treatment in the workplace, support of women-led businesses, creation of supply chains, and gender-responsive business practices. Also, promote women’s economic participation and empowerment as well as regional knowledge exchange to identify challenges and solutions. Accelerating private sector reporting of progress on gender equality, including setting targets and indicators, reporting, analysis, and use of sex-disaggregated data to track progress.

The brief also cites promising practices in the region that can be replicated. For example, the number of women senior managers has recently increased in Malaysia after its leaders implemented a series of targets for women in leadership positions. Indonesia, the Philippines, and Singapore require listed companies to produce annual sustainability reports that include gender-related indicators.

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