Likewise, SMEs in Asia can source components from international markets and assemble them locally.

He said all this can make smaller firms an even more potent force, because of the way Internet use has multiplied and supply chains have been reinvented to give SMEs much more access to new customers.

However, despite removal of trade barriers, many industry players are still reluctant to fully tap trade deals to get that "competitive edge".

Cunningham said new trade deals have been inked in recent years, from the Asean-China Free Trade Agreement to the economic cooperation agreement between China and Taiwan, along with numerous bilateral trade pacts - for instance, between India, Japan and Malaysia.

In fact, there are more than 50 free trade agreements in the region, and the sheer number and complexity of these are often overwhelming for a large proportion of smaller businesses.

"It is not that they (SMEs) do not want to reap the rewards of more open trade - often it is that they do not always know how," Cunningham said.

He said against the backdrop of the ever-expanding free trade environment in Asia, complex customs regulations, duties and taxes remain one of the biggest barriers to SMEs' access to regional and international markets.

Cunningham said this type of market access is yet to be tackled by major trade agreements, yet is crucial to job creation, economic growth and future prosperity for businesses around the world.

"We believe that if governments work to simplify complex regulatory frameworks, it will strengthen the health and competitiveness of SMEs and their economies," he added.