APEC business council suggests generating new drivers of growth

Traditional drivers of growth are running out of steam, export-led growth is no longer sufficient to drive economic prosperity, Chairman of the APEC Business Advisory Council (ABAC) Doris Ho said here Monday as APEC business leaders wrap up their final meeting for 2015.

"The major economies in the region are undergoing structural transformation toward domestic demand led growth," Ho said, emphasizing the importance of generating new drivers of growth for Asia-Pacific economies.

Speaking while delegates from APEC member economies were gathering in Manila under the main theme of "Building Inclusive Economies, Building a Better World," the ABAC chair said the council had made recommendations aimed at developing new economic opportunities and expanding the participation of micro, small and medium sized enterprises (MSMEs).

"We have changed the conversation about services through the proper appreciation of its significant contribution to economic growth and in promoting inclusiveness," Ho said.

On MSMEs, Ho noted these kinds of companies make up 97 percent of business, employ over 60 percent of the region's workforce, yet they account for less than 35 percent of exports.

"Many of these impediments can be addressed by a robust cross-border e-commerce infrastructure and e-payment systems. So we have urged governments to take action to create a supportive ecosystem as a major step toward empowering MSMEs to go international," Ho said.

The ABAC chair also mentioned utilizing the financial markets, pushing ahead the free flow of goods, services and investments as means to boost the Asia-Pacific region's economic growth. Endit