| Danial Norjidi |
THE APEC Business Advisory Council (ABAC) recently held its fourth meeting for 2018 in Port Moresby, Papua New Guinea from November 13-15, bringing together senior business leaders from around the Asia-Pacific region.
The ABAC was created by APEC (Asia-Pacific Economic Cooperation) leaders in 1995 to be the primary voice of business in APEC, with each economy having three members. The ABAC meets four times a year in preparation for the presentation of their recommendations to the leaders.
Among those attending the council’s fourth meeting were ABAC Brunei members, Legislative Council member Yang Berhormat Nik Hafimi binti Abdul Haadii and Baiduri Bank Retail Banking and Branch Network Head Pengiran Azaleen bin Pengiran Dato Haji Mustapha.
Speaking on the meeting, Pengiran Azaleen said, “Being the final leg of the ABAC 2018 tour ahead of the APEC Leaders Summit, business leaders highlighted their concerns and recommendations on the well-being of the region’s business and trading environment, notably the trade tensions between APEC economies.
“Three major areas discussed were upholding the Free Trade Area of the Asia-Pacific (FTAAP) initiatives which includes opposing protectionism; leveraging use of digital infrastructure for trades; and development of the region’s micro, small and medium enterprises (MSMEs) and women-led businesses.”
On what from the meeting was of particular significance to Brunei Darussalam, he said, “As a majority of businesses in Brunei are MSMEs, embracing the digital frontier in trades, either done locally or abroad, would be beneficial given the small and saturated market in Brunei.”
He added, “ABAC continuously promotes the digital economy initiative and championing a fairer free trade environment among APEC economies.”
Yang Berhormat Nik Hafimi also shared her takeaways from the meeting, saying, “I think this year’s ABAC Meeting was a little bit more on understanding the impact of a lot of what’s happening globally to MSMEs. We had various discussions as well about ABAC itself, and how it (ABAC) fits into the whole scheme of APEC. So, it was a lot of self-reflection from us as ABAC members, and the idea is to actually move forward into APEC post-2020.
“A lot of discussions centred towards the free trade of the Asia-Pacific region. That’s our main goal, with multi-level engagements and in line with the fairness approach with the World Trade Organization (WTO).”
She highlighted the APEC MSME Marketplace, a business-to-business platform enabling cross-border trade among MSMEs in the Asia-Pacific region. “We do encourage local MSMEs to tap into the marketplace, because that will give them immediate exposure within APEC,” she said.
According to an ABAC press release, in their annual report to APEC Leaders, ABAC members called on leaders to continue supporting the integrity of the international trading system, to commit to actions that lead to the eventual realisation of the FTAAP and undertake greater engagement with civil society and business to explain the benefits of trade liberalisation.
It was shared that ABAC asked governments to adopt complementary policies to ensure the benefits of trade are shared more widely across economies, through real income growth for lower and middle income groups.
The press release included comments from ABAC Chair David Toua, who said, “Closer economic integration and rules-based trading systems, including the WTO, have underpinned the shared prosperity we have achieved over the past 30 years.
“However, these systems and structures have not kept pace with the way business is done today, and multilateral efforts to modernise these systems are required to reflect current trade and economic realities.”
In addition, ABAC called on all economies to counter the trend towards protectionism and the deleterious impact that may have on the benefits of economic integration. The press release noted that, according to a report from the USC Marshall School of Business commissioned by ABAC, trade and globalisation have lifted geographic constraints for business of all sizes, including creating unprecedented opportunities for MSMEs, to engage in cross border trade.
ABAC’s core message to leaders emphasises the importance of fully leveraging the digital age. Acknowledging the concerns in communities around the digital and innovation revolution, it is clear the digital economy offers unprecedented opportunities for advancement if supported by appropriate policy settings and collaboration between governments and the private sector.
The press release added that these messages were supported by the results of a study conducted in collaboration with RMIT University.
“That means developing future-ready workforce and investing in Science, Technology, Engineering and Mathematics (STEM) education; investment in effective infrastructure for affordable broadband access; and the right policy settings to ensure data flows, privacy and security, while not leaving some economies behind,” said Toua. He added that in empowering MSMEs, women remain a major priority, saying, “It is critical that MSMEs, including women-led MSMEs, are able to realise their full potential, particularly in the digital economy – whether operating domestically or internationally.
“That requires greater capacity building including training and market information; access to finance, e-commerce and the digital economy; and reducing structural impediments and trade barriers such as non-tariff barriers.”
He concluded, “A mindset in both business and society that encourages and enables equal economic participation, including diversity in leadership roles, is critical. Without addressing these needs, we will struggle to deliver truly inclusive and sustainable growth.”
The press release concluded that ABAC’s work is driven by a desire to build inclusive societies in the region, where all people prosper. The regional business community is committed to partner with governments to ensure a stable and prosperous Asia-Pacific region, with Toua saying, “Our report strongly supports an ambitious post-2020 vision for APEC, focussed on realising a seamless, dynamic, resilient, inclusive and sustainable region.”