PRESIDENT Ferdinand Marcos Jr. on Friday, July 28, 2023 emphasized the business sector’s critical role in achieving sustainable economic growth and addressing urgent economic issues at the opening of the third leg of the Asia Pacific Economic Cooperation (Apec) Business Advisory Council (Abac) Meeting in Cebu City, citing three areas of partnership that it could work with government on.
“The business sector, as not only a major contributor to the economy but also the most aggressive agent of change in our society today, has a role to play,” said Marcos, who recently came from a state visit to Malaysia.
In his speech before the 200 delegates and guests from the 21 Asia-Pacific economies at the meeting in Nustar Convention Center, Marcos said the business sector is a key partner of the government in solving today’s global challenges such as climate change, ocean waste and pollution, shift to clean energy, and smart city agglomeration, among others.
“As we engage with the business community, technical cooperation and capacity building play pivotal roles in ensuring that our economies are capacitated to implement our agreements, hasten our development by learning from each other’s expertise and experience, and for us to ultimately find complementarities in our economies to not only strengthen our regional value chains but also create new markets and opportunities, and foster equitable growth,” said Marcos.
He noted that today’s global challenges require “the transformation of economic and business activities to ensure that these critical issues are effectively addressed, but in a sustainable and resilient manner.”
Citing a recent study by McKinsey, he said the business sector contributes up to 72 percent of gross domestic product, triple the value in 1960, with companies now accounting for 85 percent of technology investment and labor productivity growth.
The three-day summit, which will conclude on Sunday, July 30, 2023, is anchored on the theme “Equity, Sustainability and Opportunity.”
Abac Philippines is the host of this year’s summit.
This year’s theme puts a spotlight on the critical role of micro, small and medium-sized enterprises in the global economy, as well as the evolving environment, social and governance (ESG) investing landscape.
Private sector
Last year, the Marcos administration established the Private Sector Advisory Council (PSAC) to strengthen the voice and contributions of the private sector in government programs and initiatives in order to expedite the achievement of the country’s economic objectives.
PSAC’s creation is a recognition of the pivotal role of the business sector in the country’s growth trajectory, Marcos said.
One of its priority areas is scaling up agriculture and food security by introducing programs that will help farmers and those in the food value chain such as digital farming methods and supply chain improvement strategies.
3 areas of partnership
Moreover, Marcos identified three areas of partnership that the government and private sector could work on to advance efforts toward sustainable growth and climate action.
First, he said the government and business sector must come together to identify practical and promising solutions to sustainably address pressing issues like energy insecurity, and the triple threat of climate change, pollution and biodiversity loss.
“Striking a balance between being prescriptive and affording especially developing economies with policy space, we can pursue innovative technologies and approaches,” said Marcos, citing
the exploration of nuclear energy and small modular reactors as viable options for low or zero carbon energy sources, as an example.
“In the Philippines, we have identified the use of renewable energy as the top of our climate agenda, and we need all the support of the business sector to see this through fruition,” he said.
Second, “shared investment would alleviate the financing burden of governments,” he said, while the government can also benefit from the business sector’s skills in planning, operating, executing, and ensuring returns for sustainable projects.
Finally, Marcos highlighted the business sector’s role to lead the way in establishing standards for responsible business conduct that will encourage sustainable practices while balancing rapid growth.
“Opportunities abound for our people if Apec preserves its strength as an incubator of ideas, driven in large part by the significant contributions of Abac and the dynamism of the business community in our region. We have proven this in some of our agreements that have made their way to the multilateral trading system,” he said.
Cebu’s hosting of Abac
Cebu’s hosting of Abac is an opportunity for the Philippines to showcase its strength as an investment destination and foster greater regional cooperation and integration, according to Aboitiz Group president and chief executive officer Sabin Aboitiz.
“This is all about (formulating) bigger policy. Our goal is to give Asia a bigger, louder voice in changes in renewable energy, transition, for example and other sustainable efforts,” said Aboitiz, also vice chair of the 2023 Abac Sustainable Growth Working Group, where he plays a crucial role in advancing Abac’s efforts to promote sustainable and inclusive economic growth in the region.
“Every country has to transition differently in their sustainability program, so we want to make sure that Asia’s voice is as loud as anybody else’s voice,” he said.
The Abac Philippines group is committed to advancing the interests of the Asia-Pacific business community and contributing to the region’s economic development.
Economies all over the world are embarking on various inclusive and sustainable program such as ESG investments, for example, to influence positive change.
Cebu’s hosting also mean that the Philippines is more than ready to welcome more investments.
“We have lots of interest. Interest is piling into the Philippines. Everywhere you go around the world, they know that the Philippines is open for business,” Aboitiz said, referring to the country’s current business climate after the economic slump caused by the Covid-19 pandemic.
“As investors are coming in, we have to make sure that we treat them well. So that’s what we are doing now,” he added.
Sought for comment, Charles Kenneth Co, president of the Cebu Chamber of Commerce and Industry, said hosting Abac is “an opportunity to showcase Cebu as a prime investment destination to our Apec neighbors.”
He said the collaboration between the government and the private sector “ensures that policies crafted align with business interests to promote growth and investment which will create more and better jobs.”
Last year’s Abac meeting was held in Brunei.
The Abac Council had its first meeting and dialogue with the Leaders in 1996 when the Philippines first chaired Apec.
Every year, Abac submits a report to Apec leaders which outlines key recommendations focused on regional economic integration. Abac also engages with ministers, especially those responsible for trade, finance, small and medium enterprise, energy, food security, health and women to address urgent challenges.