WHEN leaders first met on Blake Island 22 years ago, they committed to “deepening our spirit of community based on our shared vision of achieving stability, security and prosperity for our peoples.” In Bogor a year after, leaders began the process of pursuing this vision by committing to the goals of free and open trade and investment in the region.
Thus the work of Apec and Abac have focused on economic integration—basically removing barriers behind the border, at the border and across the border as well as liberalizing trade and investment in goods and services. Over time, Abac’s recommendations to leaders have produced tangible and meaningful results. One example is the adoption of the Apec Business Travel Card (ABTC) in 1997. There are more than 100,000 business executives that use the ABC today.
Abac recommendations have contributed to the reduction of tariff and improvement of business environments in the region. From an average of 16.9 percent in tariff in 1989, tariff levels have gone down to an average of 5.4 percent today. Ease of doing business in the region has also improved as indicated by the shorter time it now takes to start a business in the region.
Other advocacies include trade facilitation through the single-window system across Apec with standardized information and documents through a single entry point to fulfill all import, export and transit-related regulatory. The goal is to adopt the Single Window systems within each Apec member economy by 2020. As of 2012, 14 economies have adopted various stages of the Single Window System.
Abac is committed to deepening the SMME agenda, including the women and the economy. The inclusion of the women’s agenda in Apec was initiated by the Philippines when it hosted Apec in 1996. Abac first introduced the concept of the Free Trade Area in Asia-Pacific (FTAAP) in 2004 and after more than a decade, the concept is now gaining traction. Abac has also heightened the level and depth of government-business sector interaction through various fora and industry dialogues established throughout the years.
In light of the Apec SME Summit 2015 that takes place tomorrow, Nov. 17, at the Green Sun Hotel, in partnership with Go Negosyo’s Philippine Center for Entrepreneurship and Asia Society, I’d like to focus on one of Abac’s key priority areas, which is to bring more SMMEs into global trade as a key outcome for inclusive growth. We’ve identified three pillars as crucial to making this happen.
The first pillar aims to bring more SMEs into the global value chain. We hope to collect great stories of value-driven supplier relationships between bigger businesses with smaller businesses to inspire more inclusive business models around the region. I understand that MAP is doing a lot in these areas especially for agriculture.
The second pillar aims to bring more SMEs into the digital/Internet economy. Inclusive growth is not a new theme but is now possible with the convergence of technology and globalization. We are working, in fact, with the USC Marshall School to identify case studies of successful e-commerce businesses and platforms across the region, to identify what works and what doesn’t, and to recommend policies that help SMEs gain access to international markets.
Abac will launch the CBET e-Learning program to build the capacities of SMEs to trade domestically and across borders. This is also a key to given women and people with disabilities an opportunity to be in business from the home. The DTI is incorporating this recommendation into the draft Apec SME Action Plan. In addition, the Asia-Pacific Financial Forum (APFF) has set out a 12-part Action Plan that includes finding ways to give SMME’s access to finance and micro-insurance.
And finally, the third pillar is to develop the innovation and accelerator network around the region as the greatest contributor to high-impact entrepreneurship. In this regards, we will complete a study and present recommendations to advance the digital economy agenda, which is clearly becoming the way of the future given the way technology is reshaping business and economies.
Tomorrow’s Apec SME SUMMIT 2015 will highlight the critical role of innovation in enabling micro-, small- and medium-sized enterprises (MSMEs) to rethink the way they do business and become creators of ideas and solutions. This is of particular significance when you consider that entrepreneurs have become the dynamic drivers of innovation and job creation.
With MSMEs accounting for 97 percent of enterprises and up to 90 percent of employment in Apec economies, it becomes vital that Asia-Pacific economic leaders address barriers inhibiting the participation of MSMEs in cross-border trade. Asia-Pacific economies must promote inclusive business models to enable more MSMEs to enter into long-term, value-driven partnerships in global value chains.
A boon to local entrepreneurs is a new law called Go Negosyo that was recently passed to create SME centers around the country. To operationalize it, we should study how the Malaysian SME Corp., a well-funded organization, is set up to be one pointed and focus and determined to bring up as many small businesses into value chains and global trade.
We also need to ensure that the next generation will have an opportunity to participate in the digital economy by having an Innovation Center with incubators and accelerators. Long-term policies should ensure parents and kids know that the future is in math and science, engineering and other applied sciences so the best and brightest can become high-impact entrepreneur to design and create digital products for the global market. Abac is pushing for an Innovation Network across the region and we need our own setup as soon as possible.
Abac was created by Apec Leaders in 1995 to be the primary voice of business in Apec. Each economy has three members who are appointed by their respective Leaders. They meet four times a year in preparation for the presentation of their recommendations to the Leaders in a dialogue that is a key event in the annual Leaders Meeting. Abac is comprised of the Asia-Pacific region’s top business leaders tasked to provide inputs to Apec. It serves as the official business sector voice in Apec by presenting recommendations that promote the advancement of inclusive growth in the Asia-Pacific region, and ensure greater prosperity and a better quality of life. This 2015, Abac focused on four key priorities: Advancing the regional integration and services agenda; strengthening and facilitating micro-, small-, and medium-sized enterprises’ (MSME) entry into global markets; maximizing innovation and human capital potential; and promoting livable, sustainable cities and resilient communities. www.abaconline.com