FURTHER encouraging inclusivity as a topic of discussion on its first meeting for 2018, the members of the Apec Business Advisory Council (Abac) Philippines recently urged the local business community to share the benefits of growth and embrace the digital economy.
Chairman Tomas Alcantara of Abac Philippines pointed out that the Apec, or the Asia Pacific Economic Cooperation, plays a critical role toward achieving the shared goal of inclusivity that will directly impact the domestic economy.
In a press statement, Alcantara said, “The Apec represents an important region because it accounts for 64 percent of the country’s foreign direct investments, 84 percent of its exports and 63 percent of the overseas Filipino population.”
Asia Pacific is one of the hottest spots for growth prospects. According to experts from the International Monetary Fund, the region’s gross domestic product would expand by 5.4 percent this year—far outstripping the rate of advanced economies at 2 percent.
The multilateral financing agency said prospects for the Philippines are even brighter, predicting a 6.7-percent growth for 2018.
The recent conclusion of the Trans-Pacific Partnership by 11 Apec economies—seen as one of the key pathways to an integrated Asia-Pacific economy—is welcomed as a positive step to regional inclusivity.
“Therefore, the Philippines should continue to engage the Apec community with the following strategies: [1] push for greater connectivity; [2] promote further liberalization of trade; [3] adapt to industrialization; and [4] achieve a people-centered development,” Alcantara explained.
He noted that micro-, small- and medium-sized enterprises (MSMEs) development, the services agenda and infrastructure financing are among the policy areas where the Philippines is most active.
Infra promoting prosperity
LAST month in Auckland, New Zealand, Abac-Philippines member Joanne de Asis emphasized that infrastructure provides the backbone of an inclusive economy, and that adequate financing is the lifeblood of infrastructure development in the region.
“Infrastructure projects are the concrete and tangible outcomes of Apec and Abac’s role in promoting prosperity in the region,” de Asis said.
“Infrastructure finance—particularly an opportunity opening up in a pool of Islamic infrastructure financing—represents an alternative, new channel for funding projects under the government’s ‘Build, Build, Build’ program. We look forward to play an active role in this new area of work within Abac,” she added.
Abac will also have a strong presence on the digital economy this year. In line with this, the private-sector body of the Apec has created a new working group that would address digital and innovation issues.
For Abac Philippines member Guillermo Luz, digital innovation as a new policy topic within Abac is particularly relevant for the Philippines, which is known to have a strong service-oriented economy.
“We will look at the opportunities and adjustments to the economy brought about by technologies, such as artificial intelligence, robotics and machine learning, among others. It is estimated that as much as 80 percent of existing jobs today may be changed significantly—or outright eliminated—in the next 40 to 50 years and [eventually be] replaced by an even larger number of new jobs. The implications on today’s educational system and curriculum will be massive,” Luz said.
Digital economy, investments
ABAC 2018 Chairman David Toua of Papua New Guinea explained the importance of focusing on digital innovation for Asia Pacific:
“The digital economy provides a springboard for small business, women and other disadvantaged groups to take part in trade and connect around the region.”
Papua New Guinea is the 2018 chair of Apec and Abac meetings, as it will host the Apec Summit later this year.
Nevertheless, Toua said the full potential of a “Digital Asia Pacific” could not be realized without “an investment to counter the digital divide that risks leaving the most vulnerable groups behind.”
“In all economies, we also need to nurture a future-ready work force. That means putting in place the right settings for digital infrastructure, skills and education, as well as region-wide digital business-friendly regulation,” he pointed out.
Explaining the thrust of Papua New Guinea’s chairmanship for 2018, Toua explained, “Growth is clearly an essential—but not a sufficient condition—for secure and prosperous communities.”
He further stated, “We need to look closely at our economic policies to ensure that people can actually take advantage of the opportunities that growth brings. Harnessing inclusive opportunities is a key mantra for this year.”
With this year’s theme, “Digitization and Innovation: Advancing Social Harmony,” other specific priorities discussed in the Abac meeting included improving connectivity; structural reform, especially in the services sector; reducing trade and investment barriers; creating opportunities for MSMEs; strengthening financial systems; as well as grappling with issues around sustainable growth, such as food and energy security.