| Danial Norjidi |
THE third APEC Business Advisory Council (ABAC) 2018 Meeting recently took place in Kuala Lumpur, bringing together senior business leaders from around the Asia-Pacific.
Two members of ABAC Brunei were among those to attend the meeting when it was held on July 23-26, namely Legislative Council member Yang Berhormat Nik Hafimi binti Abdul Haadii and Head of Baiduri Bank Retail Banking and Branch Network Pengiran Azaleen bin Pengiran Dato Haji Mustapha.
Yang Berhormat Nik Hafimi said, “As ABAC we must keep to the intent of the free trade of the Asia-Pacific. ABAC Brunei is supportive of the messages being delivered to Asia-Pacific Economic Cooperation (APEC) Leaders and in our own context, being a small economy, Brunei Darussalam through the pathways of Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and Regional Comprehensive Economic Partnership (RECP) are further encouraging Bruneian businesses to go beyond our borders.”
She noted the central focus for micro, small and medium-sized enterprises (MSMEs) within the message of the ABAC report this year “in its wholeness of not just eco-system, access to finance and human capacity building but more importantly linkages into the value chain and supply system”.
“The efforts of big business helping SMEs are still crucial to improving the livelihoods of our APEC communities,” she said.
“There was also much discussion on the Digital economy and the impact this is having and will be shaping the way we in APEC go about business in the region,” she continued.
“In Brunei the digital economy is very much a catalyst of where we can focus one aspect of economic diversification,” she said, noting, as examples, agriculture and technology, “not just for the benefit of serving our long term food security but also allowing better knowledge and innovation development which can then be licensed as IP and replicated globally”.
Adding to this, Pengiran Azaleen said, “ABAC recognises the central role that FinTech plays in the digital economy, and accordingly stresses the importance of coordination on policy, regulatory and institutional settings in that area.
“The vast infrastructure needs in the APEC region should be an urgent focus for investment and regulatory reform,” he affirmed. “This reflects the direction of financial institutions in Brunei for wider financial inclusions in the market place and the regulatory framework needs to cater for a level playing field of all involved.”
ABAC was created by APEC Leaders in 1995 to be the primary voice of business in APEC, and each economy has three members. ABAC meets four times a year in preparation for the presentation of their recommendations to the leaders.
According to a press release issued by ABAC, the senior business leaders who attended the meeting in Kuala Lumpur expressed deep concern about the risks to continued prosperity from the current turbulent trade and economic environment.
Chair of ABAC David Toua said, “The storm clouds of trade war and protectionism are gathering. After a period in the doldrums, we had finally been seeing more buoyant growth around the world. But the destructive forces of protectionism and unilateralism are a real threat to that trend.”
Toua noted that the IMF was forecasting global GDP to expand by 3.9 per cent in 2018, but that it has also identified a rise in trade tensions as a significant downside risk.
“We have given a strong message to APEC Economic Leaders in our annual report about our support for the global rules-based trading system and the value we place on pressing ahead towards a Free Trade Area of the Asia-Pacific. These are fundamental to ensuring that our region will be seamless, dynamic, resilient and sustainable – and a place where everyone can enjoy the opportunities and benefits of regional economic integration.
“Trade barriers hurt jobs especially those in SMEs participating in Global Value Chains (GVCs), and it hurts our communities and environment. Open and connected markets are not just better for business – they have advanced communities globally. We need to focus on reaching win-win outcomes.”
He added that a further core message to the Leaders was around the importance of fully leveraging the digital age. “That means a future-ready workforce, infrastructure, and the right policy settings to ensure data flows, privacy and security, while not leaving some economies behind.”
Toua said that the Council had also finalised letters to APEC Ministers for Finance, Energy and SMEs.
On energy, he said that ABAC was committed to helping to realise the UN Sustainable Development Goal of access to affordable, reliable, sustainable and modern energy for all. “That demands a focus on improving energy infrastructure, shifting towards low-carbon and renewable energy, and tackling climate change.
“On finance, we recognise the central role that FinTech plays in the digital economy, and accordingly we have stressed the importance of coordination on policy, regulatory and institutional settings in that area,” he continued. “As well, the vast infrastructure needs in the APEC region should be an urgent focus for investment and regulatory reform.”
He added that empowering MSMEs and women remained a major priority. “It is critical that MSMEs, including women-led MSMEs, are able to realise their full potential – whether operating domestically or internationally. That requires access to finance and the digital economy, reducing structural impediments and trade barriers such as non-tariff barriers (NTBs).”
“There also needs to be an emphasis on the development of future-ready skills, more broadly throughout economies such as STEM education, and the right mindset in business and society that encourages and enables equal economic participation, including diversity in leadership roles. Without addressing these needs, we will struggle to deliver truly inclusive and sustainable growth,” he concluded.