Yes, it is a new year and as the saying goes we are the masters of our destiny. My last week column spoke about the challenges in 2012. This week I am writing on the opportunities that SMEs can explore.

Yes, harsh reality and challenging times are staring at SMEs in view of the ongoing Eurozone debt crisis and the US economic slowdown but look at other regions. 

Also read: Challenging year ahead for SMEs 

Some of the African and ASEAN countries – (Indonesia, Malaysia. Myanmar, Philippines, Singapore, Thailand and Vietnam), China, Bangladesh, Sri Lanka and India – offer good opportunities as these countries are expected to do well and post positive economic growth this year.

SMEs must take advantage of the situation and need to have a business plan or strategy to address these markets. To make this happen, SMEs must be innovative and creative and able to identify the local needs in these markets and keep up with the changes as per the market demand.

According to one of the reports from Federation of Indian Micro and Small and Medium Enterprises (FISME), there is a ready potential in the China market in the sectors like textiles and apparels, leather, chemicals and dyes, marine and tea/coffee.

The study points out that the opportunities are not spread across sectors but lie in specific product categories. Similarly, Rwanda in Africa offers investment opportunities in many areas.

The broad areas are infrastructure, agriculture, energy, tourism, information and communication technology, real estate and construction, financial services, mining, general manufacturing, education and health sectors.

Indian SMEs have wide scope in Sri Lanka. They can explore sectors such as tourism, textiles, IT, gems and jewelry, and rubber. On the other note, the total trade between ASEAN and India in 2008 was about $50 billion.

India's FDI net inflow to ASEAN in 2009 was almost $1 billion. India-ASEAN trade increased 18 per cent from $41.20 billion in 2009 to $48.70 billion in 2010. The major part of this trade promotion is mainly contributed by SMEs.

Meanwhile, bilateral business between Singapore and India expanded to 30 billion Singapore dollars last year, especially following the easing of taxes under the Comprehensive Economic Cooperation Agreement.

Indian commerce and trade observers see the number of Indian companies increasing to 6,000 over the next two to three years.

In fact, senior minister of state for trade and industry S Iswaran recently said that Singapore can be a good springboard for the SME companies as the city state has Free Trade Agreements with regional markets.

The Indian SMEs can exploit these opportunities through joint ventures, collaboration and technical tie-ups, if not through the direct set-up.

Knowledge, specialization, innovation and networking will determine the success of SMEs in this globally competitive environment.

Those SMEs who have competitive spirit and willingness to restructure themselves shall withstand the present challenges and come out with shining colors.

Wishing best of 2012.