Global economic power shift to Asia-Pacific offers growth opportunities for small, medium businesses
MANILA, Nov. 21 -- The Philippines and other Asia-Pacific economies need to work together to create an environment that fosters the participation of small and medium enterprises (SMEs) in overseas markets, in a bid to seize new growth opportunities as the global economic power shifts towards the region.
Chair of the Asia-Pacific Economic Cooperation Business Advisory Council (ABAC) 2015, Doris Magsaysay-Ho, identified the shift in economic power among the “global megatrends†that are creating new challenges for APEC economies and businesses.
Magsaysay-Ho also noted the demographic and social change, with global population hitting 8 billion by 2025.
“These same global megatrends offer new growth opportunities, especially for SMEs. We must promote inclusive business models,†Ho said.
Magsaysay-Ho underscored the important role of electronic commerce in the internationalization of SMEs.
“The greatest driver of economic growth is innovation. And unconstrained by large fixed assets, SMEs are better positioned to understand new customer expectations and create transformational business models through innovation,†she added.
The ABAC chair said it is thus imperative for APEC economies to commit to developing their prospective innovation and digital plans.
“Fifty years ago, the life expectancy of Fortune 500 Companies was 75 years. Today, it is less than 15. Clearly, an APEC-wide plan is also needed or we will be left out of future growth,†she said.
Magsaysay-Ho further said the ABAC, together with the Asia Pacific Foundation of Canada and ABAC Canada, is launching an interactive mapping of incubators that would allow startups to network and venture capitals to find startups to support.
She also urged APEC economies to adopt policies to promote trade and services, ratify the trade facilitation agreement (TFA) and commence steps on rapid implementation of their TFA commitments, as well as accelerate investments in resilient infrastructure.
Moreover, Magsaysay-Ho identified other global megatrends shaping the future, which are the unprecedented rise in urbanization, and climate change and resource scarcity amid growing population and middle class.
"Excellencies, these megatrends are bringing challenges and new opportunities. More than ever, we need to come together for collective action towards greater regional economic integration to achieve our shared vision of a secure, stable and prosperous region for everyone through inclusive, quality and sustainable growth,†she added. (PCOO/PNA)
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