Officially speaking:

The hosting of APEC 2020 is set to directly benefit SMEs. Meeting and hosting supplies in the form of goods, products and services are procured from Malaysian companies, with special priority accorded to SMEs. Malaysian SMEs stands to benefit through not only this hosting but also from the exposure to events of international standard. At the margins of the meetings, there will be programmes arranged for Malaysia businesses, including SMEs, Social Enterprises and Start-ups to showcase their products to potential buyers. this is the official wording

Did Malaysian SMEs Actually Benefit from APEC 2020 Being Hosted Virtually?

Expectations vs Reality for SME Opportunities

The original plan for APEC 2020 Malaysia anticipated substantial direct benefits for SMEs. Before the pandemic, the organising committee highlighted that meeting supplies, hospitality services, logistics, venue operations, and event-related procurement would prioritise Malaysian companies—especially SMEs. Large-scale international events typically create business for caterers, transportation providers, event managers, designers, printers, rental companies, and tourism operators.

However, when the pandemic forced APEC 2020 to shift entirely into a virtual format, the nature of these opportunities changed significantly. Many of the physical procurement categories—venue hire, catering, event management, accommodation, F&B, transport, and physical exhibitions—were either eliminated or drastically reduced. This inevitably limited the scale of SME participation compared to a conventional, in-person summit.

Reduced Direct Economic Impact

In a physical summit year, thousands of delegates would have travelled into the country, generating substantial spending across local SMEs. Because APEC 2020 became 100 percent virtual, Malaysian SMEs did not receive the typical inflow of international visitors, nor the associated spending on:

• Hotels and homestays
• Restaurants and catering
• Event infrastructure and staging
• Printing and merchandise
• Transportation services
• Tourism products

As a result, the direct financial impact on SMEs was significantly lower than initially projected.

Limited Procurement, Mostly Digital Services

Instead of large-volume procurement, the virtual format concentrated spending on:

• Digital platforms and conferencing systems
• Local ICT service providers
• Creative, multimedia and broadcast production
• Content development and translation
• Technical support and cyber-security services

These sectors did include SMEs, but the number of suppliers was smaller and more specialised. The result is that only a narrow subset of SMEs benefited, mainly those in digital services, media, and technology.

Traditional SME categories—like food services, crafts, retail, and logistics—received minimal or no benefit compared to what was originally planned.

Did SME Exposure Still Happen? Yes—but in a More Modest Form

One of the intended features of APEC 2020 was the opportunity for Malaysian SMEs, start-ups, and social enterprises to showcase their products to buyers through B2B side events.

In the virtual format:

• Several online SME showcases and digital exhibitions were organised.
• Business matching sessions continued virtually.
• Webinars and digital dialogues exposed Malaysian SMEs to international networks.

However, the shift from physical exhibitions to virtual platforms limited the depth of engagement. In-person events typically allow SMEs to build rapport, conduct live demonstrations, and create memorable product experiences. Virtual engagement is more constrained and often less impactful.

While visibility and exposure still occurred, the effectiveness of these sessions varied widely and generally did not replicate the commercial impact of a physical showcase.

Intangible Benefits: Knowledge, Visibility, and Positioning

Although the direct commercial gains were muted, SMEs did benefit in several intangible ways:

1. Capability Building

Workshops and policy discussions strengthened SMEs’ understanding of:

• Digitalisation
• Cross-border e-commerce
• Supply chain resilience
• New consumer trends post-COVID

These insights have long-term value, especially as the crisis accelerated digital transformation. Basically the pandemic forced Malaysian small and medium sized enterprises to adapt to the challenging, closed-borders environment.

2. International Visibility

Being part of a global event—even virtually—helped position Malaysian SMEs as adaptable and innovation-focused. However, impact is very minimal.

3. Alignment with Digital Economy Goals

The push towards virtual showcases reinforced Malaysia’s priorities under the digital economy agenda. SMEs that adopted e-commerce, virtual pitching, or digital marketing gained capabilities that remain relevant beyond APEC 2020.

Overall Assessment: Benefits Were Real but Significantly Reduced

Did SMEs benefit?
Yes—but not in the way originally anticipated, and certainly not at the same scale as an in-person APEC year.

The virtual format resulted in:

Reduced benefits:

• No tourism-related revenue
• Minimal physical procurement
• Limited networking depth
• Smaller business participation footprint

But some meaningful gains:

• Digital capacity-building
• Exposure to international discussions
• Opportunities for SMEs in ICT, media, and digital services
• Stronger alignment with Malaysia’s long-term digitalisation goals

In essence, APEC 2020 provided value to SMEs in terms of knowledge and visibility, but the financial and procurement benefits that normally accompany international hosting were largely diminished due to the pandemic.