Overview

The Association of Southeast Asian Nations (ASEAN) has committed itself to shaping a future where growth is both inclusive and sustainable. Since adopting the ASEAN Inclusive Business Framework in 2017, the region has worked to embed inclusive business into its broader economic strategies. Subsequent initiatives, such as the Guidelines for the Promotion of Inclusive Business in ASEAN (2020) and the Model Framework for an Inclusive Business Accreditation System in ASEAN (2024), provided the foundations for identifying, supporting, and scaling businesses that integrate low-income and marginalized communities into their value chains.

In September 2025, the Eighth ASEAN Inclusive Business Forum convened in Kuala Lumpur, bringing together ministers, entrepreneurs, civil society organizations, investors, and development partners from across Southeast Asia and beyond. The event, organized under the ASEAN Chairmanship theme “Inclusivity and Sustainability,” reaffirmed ASEAN’s shared commitment to equitable development. At its center was the launch of the Capacity Building and Talent Development Framework for Inclusive Business in ASEAN, designed to provide the region with practical guidance on building the skills, systems, and policies necessary to mainstream inclusive business models (ASEAN, 2025a; ASEAN, 2025b).

Core Features of the Capacity Building Framework

The Capacity Building and Talent Development Framework for Inclusive Business in ASEAN (Capacity Building Framework) is the outcome of work conducted by the ASEAN Member States in collaboration with the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) (ASEAN, 2025b). It reflects ASEAN’s collective recognition that inclusive business requires not only entrepreneurial innovation but also strong ecosystems of support and enabling governments.

At the enterprise level, the Framework introduces Framework 1, The Inclusive Business Canvas (Appendix 1), which provides the reference tool for businesses to design inclusive business models. It presents the six steps for developing IB models, along with the tools that can be used in each step (ASEAN, 2025b). The Canvas equips enterprises to systematically identify opportunities, engage communities, co-create solutions, and measure outcomes.

At the level of support organizations, Section 2 explores the skills required by business organizations to support businesses in developing IB models. Enterprises seeking to create an inclusive business model are likely to require specialised support. Therefore, to support inclusive business models, business support organisations (from incubators and accelerators to SME development agencies) must be able to provide specialised IB services. While some business support organisations may already be providing some IB services, others are not. Organisations planning to offer IB coaching services can start by devising a strategy. Framework 2, Building the IB Coaching Service (Appendix 2), provides an overview of the six steps to developing such a strategy (ASEAN, 2025b).

Governments also have a critical role. Section 3 explores the skills governments need to support IB models. Governments play a vital role in enabling inclusive businesses to grow and scale their impact. This is because, while inclusive companies have innovated and developed viable models for success, market conditions at the base of the economic pyramid can be challenging. Framework 3, Building Government Capacity to Promote IB (Appendix 3), provides an overview of the different capabilities that governments may require (ASEAN, 2025b). Collectively, these three frameworks illustrate ASEAN’s ambition to institutionalize inclusive business at all levels.

Highlights of the ASEAN Forum

The Forum served as a regional platform for knowledge exchange, policy dialogue, and recognition of good practice. High-level speakers emphasized that inclusivity and sustainability are not parallel priorities but intertwined imperatives. The OECD highlighted that inclusive businesses demonstrate how “doing good is also good for business,” creating jobs, expanding skills, and strengthening access to essential goods and services. ESCAP underlined the urgency of scaling inclusive models while ensuring that they remain both inclusive and environmentally sustainable.

National governments across ASEAN showcased their efforts. Thailand emphasized its initiatives to strengthen support for micro, small, and medium-sized enterprises (MSMEs) through OSMEP. Lao PDR presented examples of community-based social enterprises empowering women artisans. Indonesia and Viet Nam highlighted digital innovations and impact investment as drivers of inclusive growth. Malaysia, as host, reaffirmed that its upcoming Thirteenth Malaysia Plan (2026–2030) will deepen private sector engagement to reduce socio-economic disparities, illustrating how national strategies can complement regional goals (New Straits Times, 2025).

The Forum also honored achievements through the ASEAN Inclusive Business Awards 2025. Among the winners was Chanteek Borneo Sdn. Bhd., a handicraft company from Sabah that supports indigenous artisans, and House of Musa, a Malaysian social enterprise integrating marginalized groups into textile production. Two new special categories were introduced: the Inclusivity Special Award and the Sustainability Special Award, signaling ASEAN’s determination to reward enterprises that deliver both social and environmental impact (Eighth ASEAN Inclusive Business Forum, 2025).

Regional Practices and Shared Lessons

Case studies from across ASEAN illustrate how member states are translating inclusive business principles into practice. Malaysia’s SME Corp has integrated smallholders into value chains, Lao PDR’s HerWorks has provided livelihoods for over 200 women artisans, Indonesia and Viet Nam have harnessed digital platforms to scale IB enterprises, and Thailand has institutionalized MSME support. These examples demonstrate that ASEAN’s approach is diverse but convergent. Each member state adapts inclusive business models to its unique context, while collectively advancing a regional agenda that prioritizes people-centered growth (ASEAN, 2025b).

Challenges in Mainstreaming Inclusive Business

Despite progress, significant obstacles remain. Access to finance is a persistent challenge, particularly for early-stage enterprises that lack collateral or bankable records. Impact investors are active in the region, but many businesses are not yet ready to absorb available capital effectively. Capacity gaps also hinder scaling, as MSMEs often lack technical and managerial expertise, while support organizations may not have specialized IB knowledge. Gender inequality continues to constrain women entrepreneurs, who face barriers to finance, networks, and decision-making. In addition, there is the risk of superficial branding, with some enterprises claiming inclusivity or sustainability without delivering measurable impact. Robust accreditation and monitoring systems are therefore essential to maintain credibility and ensure tangible benefits for low-income communities (ASEAN, 2025b).

Policy Recommendations

The Eighth ASEAN Inclusive Business Forum highlighted that inclusive business must be treated as a core development strategy across the region. ASEAN member states should embed inclusive business into national economic frameworks, aligning with the Sustainable Development Goals and ASEAN Vision 2045. This integration will ensure that inclusive business is not pursued as a peripheral initiative but as a central pillar of economic planning.

Harmonization at the regional level is equally important. While member states advance at different speeds, ASEAN can provide a coordinated framework that reduces fragmentation and encourages peer learning. Shared standards, accreditation systems, and platforms for knowledge exchange will enable replication of successful practices across borders.

ASEAN governments, the private sector, civil society, and development partners must also work together more systematically. Public–private partnerships, multi-actor dialogues, and co-investment schemes can pool resources and expertise, ensuring that inclusive business models are scaled effectively. Governments can further strengthen ecosystems by introducing fiscal and non-fiscal incentives, including preferential procurement, targeted tax measures, and impact investment facilitation. These efforts will enable MSMEs and social enterprises to expand inclusive models beyond pilot projects into long-term, sustainable ventures.

Finally, ASEAN must prioritize robust monitoring and evaluation. Accreditation systems, readiness assessments, and impact measurement tools should be scaled across the region. Only through consistent accountability mechanisms can ASEAN safeguard the integrity of its inclusive business agenda and demonstrate that inclusivity and sustainability deliver tangible results.

Conclusion

The Eighth ASEAN Inclusive Business Forum 2025 reinforced the region’s shared resolve to create economies that are fair, resilient, and sustainable. The launch of the Capacity Building and Talent Development Framework provided ASEAN with practical tools to move from concept to action, supporting enterprises, institutions, and governments alike. By recognizing businesses such as Chanteek Borneo and House of Musa, ASEAN demonstrated that inclusive business is not a theoretical aspiration but a proven, scalable model for equitable growth.

Looking ahead, the challenge is to translate frameworks into real impact across all member states, ensuring that inclusive business becomes a defining feature of ASEAN’s economic landscape. With sustained political will, regional cooperation, and strong multi-stakeholder partnerships, ASEAN can deliver on its vision of growth that is not only rapid but fair, not only strong but also sustainable.

References:

ASEAN Secretariat. (2025, September 12). ASEAN Inclusive Business Forum 2025 celebrates excellence, launches new framework to boost regional talent. ASEAN. https://asean.org/asean-inclusive-business-forum-2025-celebrates-excellence-launches-new-framework-to-boost-regional-talent/

ASEAN Secretariat. (2025). Capacity building and talent development framework for inclusive business in ASEAN. Jakarta: ASEAN Secretariat.

Eighth ASEAN Inclusive Business Forum. (2025). Eighth ASEAN Inclusive Business Forum 2025. https://eighthaseanibforum.com/

New Straits Times. (2025, September 12). Malaysia calls on ASEAN to strengthen support for inclusive business. https://www.nst.com.my/news/nation/2025/09/1273802/malaysia-calls-asean-strengthen-support-inclusive-business

Appendix

Appendix 1. Inclusive Business Canvas

Appendix 2. The IB Coaching Service

Appendix 3. Government Capacity to Promote IB