The Japanese Ministry of Economy, Trade and Industry will support the Association of Southeast Asian Nations (ASEAN) member nations in creating and applying credit guarantee systems.

The move is aimed at creating favourable conditions for businesses investing in the region to mobilise capital after the Trans-Pacific Partnership (TPP) takes effect.
In the initial phase, Japanese experts will be dispatched to the ASEAN countries to help create an ASEAN-wide financial database of small- and medium-sized companies.

Easy access to that data will let credit guarantee associations and financial institutions more objectively assess companies' creditworthiness.

Illustration photo.

The goal over several years is to create a credit guarantee system across the ASEAN region in which Japanese as well as local companies will access guarantees as easily as in Japan.

At working-level talks in last November, the ASEAN member states agreed to gradually put credit guarantee systems into place.

In 2016, Japan will work with those countries to survey the current state of financing to small- and medium-sized businesses within the bloc.

In light of the basic agreement reached by members of the TPP free trade pact in October 2015, the Japanese ministry is working to push local small- and medium-sized companies to venture abroad.

The ASEAN bloc boasts particularly high economic growth, making it a highly desirable destination for Japanese businesses.

ASEAN comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Viet Nam.

(Source: VNA)