kuala lumpur: The Apec Business Advisory Council (Abac) is dedicated to actively participating in solving the growing challenges posed by economic fragmentation through collaborative efforts.
Julia Torreblanca, chair of 2024, said the APEC Policy Support Unit has announced that despite the region’s performance being better than in previous years, ) pointed out that they found that inflows are decreasing (down 9% in 2022). World average in investment promotion.
“Despite the post-COVID-19 recovery, it is worrying to see Apec FDI inflows decline. Action is needed,” she said recently, on the last day of the first Abac Conference of 2024 (Abac 1).
Torreblanca pointed out that the decline in FDI could be due to geopolitical tensions that affected the region’s supply chains.
To address these issues, he said, the Council’s priorities this year include working closely with other APEC stakeholders to make tangible progress towards the Free Trade Area of the Asia-Pacific (FTAAP); This includes strengthening the economic structure of the region.
He added that any subsequent FTAAP should leverage the best of the region’s high-quality trade agreements.
“We are starting to get there through practical work, including digital trade consistency, responsible artificial intelligence, supply chains, women’s access to finance, and the trade tools we need to fight climate change. We should build it,” she said.
He further said that a second priority for this year will include developing practical ideas on how to support the transition from the informal to the formal economy.
“This is a real challenge for many developing countries in the region, hindering our ability to realize our economic potential and provide more and better opportunities to our people. , we hope to develop a practical approach to help change the dial.
“Our theme this year is ‘People, Business, Prosperity’ and will guide our efforts across important issues such as trade and investment facilitation, digital transformation, sustainability and inclusion.” Torreblanca said.
Abac 1, hosted by Malaysia, raised concerns about increasing tensions due to economic fragmentation and the potential threat it could pose to growth, inclusion and the fight against climate change.
Three more meetings are scheduled for 2024, with the next meeting scheduled for late April in Hong Kong, where Abac will meet again to discuss recommendations to be presented to APEC leaders at the November summit. It is expected to continue its formulation, and will be chaired by Abak. This year it’s Peru.
Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz said Abak’s recommendations to economic leaders arise from the ongoing economic and geopolitical challenges affecting the Asia-Pacific region. It said it would play an important role in guiding policy-making to address the wide-ranging impacts.
“The vulnerabilities exposed by the pandemic, exacerbated by the prolonged geopolitical situation, are reverberating across industries, causing production delays, shortages of critical components, and unprecedented disruptions to global supply chains. .
“This has led to a rapid rise in the cost of goods and logistics, raising serious concerns, especially for micro, small and medium enterprises (MSMEs), which will impact profit margins and hinder business competitiveness.”
“Multilateral initiatives like APEC are therefore essential to enable collective and sustained efforts. In this context, the role of APEC and Abac is to act as a beacon of stability and create a sustainable This is critical to fostering an environment that supports economic growth,” said Tengku Zafrul.
He said it was critical to recognize the vital role of human development and capacity building in jointly pursuing sustainable economic growth and economic inclusion in the Asia-Pacific region.
“For Malaysia, this means that attention will also be given to all economic actors, regardless of their level or size, as highlighted in Mission 4 of the New Industrial Master Plan 2030 to safeguard economic security and inclusiveness. To do.
“This is considering that MSMEs account for over 97% of businesses and employ over half of the region’s workforce, making them a key growth driver for many economies.
“By prioritizing promoting financial inclusion, developing digital transformation, and strengthening pension and health systems, MSMEs I believe that no one will be left out of our work.
Tengku Zafrul said it was of paramount importance to ensure inclusivity was “not just lip service” and that in line with the principles of Madani Malaysia and the United Nations Sustainable Development Goals, women and marginalized communities He pointed out that it is necessary to include all layers, including
At the same time, he noted that APEC has unique importance for Malaysia as it serves as a fundamental pillar of Malaysia’s economic strategy and guides the formulation of national policies in line with the region’s collective aspirations.
“At the core of these policy frameworks, we are committed to fostering high local R&D (technology transfer), fostering strong industrial ecosystems with innovation intensity, and increasing inclusiveness across regions and communities. , remains focused on the benefits and long-term benefits to this country, creating opportunities to participate in global supply chains and reflecting many of APEC’s objectives and goals.
“Similar to APEC’s core principles, Malaysia remains committed to being open and accepting of opportunities and investments, especially from long-standing partner economies. Notably, in 2022, APEC countries will contributed an astounding 76.5%.
Of Malaysia’s net FDI inflows. “This confirms Malaysia’s firm determination to foster strong economic partnerships within APEC,” he added.
Meanwhile, Abak issued a statement on the upcoming World Trade Organization (WTO) Ministerial Conference (MC13), calling on responsible APEC trade ministers to work towards advancing ambitious outcomes.
“A disappointing outcome is expected at the 13th WTO Ministerial Conference to be held in Abu Dhabi.
“Instead, we call on APEC trade ministers to agree on a permanent moratorium on tariffs on electronic transmissions.We call on them to immediately restore the appellate body and agree on necessary reforms to the WTO dispute settlement system. . and pursue meaningful reforms in agriculture and fisheries,” Abak said.
Additionally, the Board called on APEC Ministers to support full recognition of the Development and Investment Facilitation Agreement and its integration into the WTO legal framework. This year we will promote a series of substantive achievements on e-commerce. So is supporting efforts to effectively enable trade to address sustainability.
“The time has come for APEC countries to act decisively to support the ambitious outcomes at MC13. Together, we will not only drive economic growth, but also meet the demands of our societies and the planet.” We can promote a trade environment. This should be our legacy,” the council said.
