Business leaders in Asia Pacific are encouraged to pursue regional economic integration as this is expected to promote resilience and sustained economic growth and recovery in the region.
At the same time, companies in the region must also adapt to new business realities, specifically the evolving ways that governments and businesses operate, the Apec Business Advisory Council (Abac) said in a statement.
“Regional economic integration provides the means to deliver APEC’s hopes for economic recovery and sustained growth, job creation and financial stability,” said Wishnu Wardhana, Abac chair for 2013.
“Apec should pursue an ambitious agenda that encompasses more open trade and investment, not only in goods but in services as well, enhanced connectivity including hard and soft infrastructure, and deeper and integrated financial markets,” Wardhana added.
According to Wardhana, Apec economies must, however, take into account the evolving ways that governments and businesses operate, as he noted that “global value networks and supply chains” have become the predominant business models.
“Direct government involvement in the markets has been gradually decreasing while at the same time, the outsourcing of traditional public services including the provision of hard and soft infrastructure has been increasing exponentially,” he said in the statement.
“These circumstances have led us to recommend that specific actions be taken to support this development, which has created greater efficiency, generated jobs and helped promote inclusivity all across the region.”
These recommendations, meant to address current regional economic concerns, were a product of the recent third meeting of the Abac, which is regarded as the official voice of business in the Asia Pacific Economic Cooperation (Apec).
Abac has 21 member economies, including the Philippines.
According to Abac, these recommendations include: substantive and consistent progress in the various pathways leading to the establishment of the Free Trade Area of the Asia-Pacific (FTAAP); and the initiation of a new services agenda in recognition of its being a key component of the value chain and which can determine an economy’s competitiveness as a result.
Another recommendation was the adoption of a multidisciplinary and systematic approach to connectivity that includes the adoption of global data standards and a comprehensive system to infrastructure development in which attracting foreign direct investments is a key element.
“Inclusivity and sustainability are also critical elements to building resilience. We urge Apec economies to take actions to grow and strengthen small, medium and microenterprises and to enhance the participation of women in the economy as part of their inclusivity agenda,” Wardhana said.